St Paul’s Chambers, Sheffield PRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE Investment Summary • St Paul’s Chambers is very well situated in the prime location of the city, forming part of the ‘Heart of the City’. • Occupiers at St Paul’s include; DLA Piper, Barclays Corporate Banking, PwC and the Government Department for Business Innovation & Skills. The leisure occupiers include; Café Rouge, Caffè Nero, Piccolino, Pizza Express, Genting Casino, Cosmo and Smoke BBQ. • The property is a high quality, leisure and retail development, arranged over ground floor and basement, which was fully redeveloped in early 2000’s, comprising 4 self contained units measuring 9,132 sq ft, also benefiting from the ground rent income from the residential apartments above. • The subject interest is held by way of a long leasehold interest expiring 2251 at a peppercorn rent to Sheffield City Council. • A total income of £199,600 per annum and a Weighted Average Unexpired Lease Term (WAULT) of 13.1 years. • The income is underpinned by Mitchells and Butlers Retail (No 2) Limited, with 87% of the WAULT and 57% of the passing rental. • Offers are sought above £3,000,000 (three million pounds), subject to contract and exclusive of VAT. • A purchase at this level represents a Net Initial Yield of 6.25%, after allowing for purchaser’s costs of 6.45%. Sheffield is England’s fourth largest city and the commercial, administrative Sheffield Mainline Station provides direct services to the following UK Location and retail centre of South Yorkshire, with an urban area population of cities with approximate fastest journey times as below: approximately 640,000. The city is located 150 miles (240 km) north of London, 33 miles (53 km) south of Leeds and 38 miles (61 km) east of London (St Pancras) 127 minutes Manchester and benefits from its central location within the UK. Birmingham 65 minutes Manchester 50 minutes The city enjoys excellent access to the national motorway network, with Nottingham 45 minutes Junctions 31 to 34 of the M1 on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to Leeds 40 minutes the north (Leeds, Barnsley and Wakefield) and south (Nottingham, Milton Keynes and London). In addition, the M18, accessed at Junction 32 of the Manchester, East Midlands, Leeds-Bradford International and Doncaster M1 provides direct access to the Humberside Ports. The A57 and M67 Robin Hood Airports are located 47 miles (75 km), 53 miles (85 km), 45 provide access to Manchester, approximately 38 miles (61 km) to the west. miles (72 km) and 27 miles (44 km) respectively and are all within 1 hours drive of the city. All provide a range of national, European and international services. St Paul’s Chambers is very well situated in a prime location, forming part of the ‘Heart of the City’, which is the busiest part of Sheffield city centre. The Heart of the City includes extensive public realm, including Sheffield Innovation & Skills. The leisure occupiers include; Café Rouge, Caffè Nero, Situation Peace Gardens and the Winter Gardens which adjoin the Millennium Piccolino and Pizza Express, amongst others. Galleries. The surrounding buildings include a Mercure Hotel, Sheffield’s tallest residential tower incorporating 300 apartments, a large Q-Park car The final phase of this development is now due for completion December park, two existing prime office buildings and a final third building currently 2015 and will comprise a 95,000 sq ft building with ground floor retail, under construction. leisure and offices above. The existing buildings at St Paul’s Place include over 125,000 sq ft of prime St Paul’s Chambers is also adjacent to the proposed new development office accommodation and include occupiers such as; DLA Piper, Barclays of Sheffield’s Retail Quarter (SRQ), which is currently in the development Corporate Banking, PwC and the Government Department for Business consultation stage, with Phase 1 planned for completion by 2019. 1 Piccolino DEBENHAMS 2 Caffè Nero Situation 3 Café Rouge 4 Bills 5 Genting Casino THE MOOR 6 Smoke BBQ 7 Cosmo 8 Pizza Express 9 Mercure Hotel 10 Costa Coffee 11 3 St Paul’s Place - new 95,000 sq ft development 11 St Paul’s Chambers 5 10 6 JOHN LEWIS 4 DIVISION STREET 7 PINSTONE STREET 3 8 2 1 PEACE GARDENS CITY HALL 9 WINTER GARDEN TOWN HALL LEOPOLD SQUARE S U R R E Y S T R E E T L E O P O L D T EE S TREE R T T LYCEUM EE R T S T T ORCHARD SQUARE S S FARGATE SHOPPING CENTRE E W F O L K CRUCIBLE THEATRE R NO Description St Paul’s Chambers are set within an extremely attractive, historic building constructed of terracotta red brick, believed to date back to the late 1800’s. It was substantially re-modelled in the early 2000’s, to provide a series of retail and leisure units on the lower parts with residential above. The ground floor and basement is offered for sale along with the ground rent income from the residential on the upper floors. Tenancies Current Rent Rent per Secure Term Upwards Only Property Tenant Area Sq Ft Area ITZA Lease Start Lease End per Annum Sq Ft (yrs) Rent Reviews 25/12/2021* Mitchells and Butlers Retail 8-12 St Paul’s Parade 7,276 n/a £113,500 £15.60 25/12/2001 24/12/2036 20.1 25/12/2026* (No 2) Limited 25/12/2031* 2 St Paul’s Parade Coral Racing Limited 958 515 £39,500 £41.23 21/11/2012 20/11/2022 6.0 21/11/2017 4 St Paul’s Parade Premiere Employment Limited 433 367 £36,000 £83.14 05/07/2002 04/07/2017 0.6 n/a 8 St Paul’s Parade Clare Louise Morton 465 n/a £10,000 £21.50 28/09/2012 27/09/2018 0.8 n/a Upper Floors Residential SPCMC Limited n/a n/a £600 n/a 25/03/2001 23/03/2126 109.4 n/a TOTALS 9,132 £199,600 WAULT 13.1 yrs * Upwards only rent review, linked to RPI compounded annually, with a collar and cap at 1% and 4%. Income Analysis Mitchells & Butlers Retail (No 2) Ltd The following chart reflects the weighted rental income for each tenant: (Reg no 03959664) This is the main operating company of M&B, whose latest accounts show a Turnover of £256.4m 0% 3% and a Net Worth of £147.4m. They have a Dun & Bradstreet credit rating of 5A1 and are deemed as very low risk. The property is trading as a Browns Brasserie & Bar. 1% 87% 9% Mitchells & Butlers Retail (No 2) Limited Coral Racing Limited (Reg no. 541600) Coral Racing Limited Trading as Coral, the tenant is one of the UK’s largest licensed betting offices. For the year ending September 2015, Coral Racing Limited reported a Turnover of £667m, a Pre-Tax Profit of £81.1m Premiere Employment Limited and a Net Worth of £264.1m. The tenant has a Dun & Bradstreet rating of 5A1. Clare Louise Morton SPCMC Limited St Paul’s Chambers, Sheffield PRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE Tenure Proposal The property is held long leasehold on a ground lease Offers are invited above £3,000,000 (three million to Sheffield City Council at a peppercorn rent, expiring pounds), subject to contract and exclusive of VAT. 28/02/2251. A purchase at this level represents a Net Initial Yield of 6.25% after allowing for purchaser’s costs of 6.45%. VAT The property has been elected for VAT. The sale will be Contact treated as a Transfer of a Going Concern (TOGC). Rob Darrington MRICS: Partner DDI: +44 (0) 114 270 9163 E: [email protected] Data Room Roger Haworth MRICS: Partner DDI: +44 (0) 114 270 9162 A data room containing all legal and property related E: [email protected] information is available on request from CPP. An Argus valuation CVL file or Excel spreadsheet containing a detailed tenancy schedule can be obtained from CPP on request. EPC EPC’s are available upon request. MISREPRESENTATION ACT These particulars do not constitute part of an offer or contract. All descriptions, dimensions, reference to condition and necessary permission for use and occupation and other details contained herein are for general guidance only and prospective purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves as to their accuracy. Neither Commercial Property Partners, nor its employees or representatives have any authority to make or give any representation or warranty or enter into any contract in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function and prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Prices/rents quoted in these particulars may be subject to VAT in addition. a) These particulars were prepared from preliminary plans and specifications before the completion of the properties and are intended only as a guide. They may have been changed during construction and final finishes could vary. Prospective purchasers should not rely on this information but must get their solicitor to check the plans and specifications attached to their contract.