28-32 ST ANN STREET MANCHESTER - LoopNet
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28 - 32
ST ANN STREET
MANC HESTER
PRIME FLAGSHIP BUILDING FOR SALE
28-32 ST ANN STREET | MANCHESTER
INVESTMENT
SUMMARY
nn Manchester is the largest financial nn HS2 will make Manchester Piccadilly
and business centre outside of London one of the best connected and
and is regarded as being the capital productive locations in the UK.
of the north, ranked by KPMG as the
most competitive business location in nn Freehold.
Europe since 2010.
nn Let on a new 15 year FRI lease to
nn Rare opportunity to buy a prime H&M Hennes & Mauritz UK Limited
flagship rebased retail investment T/A Cos, the Vogue favoured fashion
situated in Manchester’s primary brand, from 24th June 2019 at a
upmarket fashion pitch. rebased rent. The lease is subject to
a tenant only break clause at the end
nn Manchester is home to the UK’s third of the 5th,8th and 11th years.
largest airport outside London and
is the most visited City in England nn Flagship store providing a total floor
by overseas visitors aside from the area of 23,903 sq ft.
capital and Edinburgh, with over
1.15m overseas visitors per annum, nn Potential for future residential/office
worth £7.5 billion per annum. conversion on the upper floors.
nn Manchester has 3 universities nn We are instructed to seek offers in
providing one of the largest student excess of £6,600,000 (Six Million
populations in Europe with an Six Hundred Thousand Pounds)
estimated 100,000 students. subject to contract and exclusive of
VAT which reflects a net initial yield of
5.68%, after allowing for purchaser’s
costs at 6.64%.
28-32 ST ANN STREET | MANCHESTER
Piccadilly Gardens
Manchester Town Hall
PRIME
OFFICE
CORE
Ki
ng
St
t
tree
re
et
s s S
M
ar Cro
ke Royal Exchange
tS Spinningfields
Arndale Shopping Centre WATC H E S OF
SWITZERLAND
St Ann's Square
tre
et
REISS
Exchange Square
sg ate
D ean
Corn Exchange
URBAN & CIVIC
RENAISSANCE
HOTEL
REDEVELOPMENT
For identification purposes only
28-32 ST ANN STREET | MANCHESTER
LOCATION
MANCHESTER IS THE ADMINISTRATIVE AND COMMERCIAL CAPITAL OF THE NORTH WEST OF ENGLAND, ONE OF EUROPE’S MOST DYNAMIC CITIES,
AND IS THE LARGEST ECONOMIC CENTRE IN THE COUNTRY, OUTSIDE OF LONDON.
Manchester has a population of approximately The £50 billion ‘Atlantic Gateway’ project which Approximately £13 billion of expenditure A merger of the University of Manchester and
2.8 million, with in excess of 12 million people aims to reinvigorate the Manchester ship canal, is proposed to be invested in transport UMIST kick-started a £500 million building
within a 50 mile radius of the city centre and and the Etihad Campus Project where a further infrastructure across the North including plans programme known as “Knowledge Capital” with
boasts the largest travel to work area of any £1 billion is to be invested in the University of for High Speed 2 and 3, which will half the the aim to become a top 10 university.
conurbation outside of London. Manchester to develop it’s campus. journey time to London to an improved travel
time of just 68 minutes. Major employers in the Manchester has three universities providing one
The Greater Manchester region has benefited The Northern Powerhouse proposes to boost city include a number of blue chip businesses of the largest student populations in Europe
from large scale development in recent years, economic growth across the north of England, such as Amazon, Barclays, BBC, ITV, HSBC, with an estimated 100,000 students. The City
including the ongoing Metro Link expansion, targeting the core cities of Manchester, Kellogg’s, Guardian Media Group, Stagecoach, is also a thriving tourism, sporting and cultural
and £650 million MediaCityUK development. Liverpool, Leeds, Sheffield and Newcastle. Thomas Cook, RBS and numerous legal and economy. Key attractions in the City include
The largest development in the North West – Manchester lies at the heart of these plans, professional firms. The relocation of BBC the Manchester Arena (one of Europe’s busiest
Noma - is being undertaken at a cost of £800 representing the largest economically and from London to Salford accounted for 2,500 indoor venues), Imperial War Museum North,
million. The 20 acre masterplan is creating geographically of the east coast cities. The new people coming to the City. MediaCityUK, The National Football Museum, Old Trafford
new homes, offices, hotels, shops and £300m development of the M56, A6 and the where the BBC are located, is a £650 million, Cricket Club, Manchester United and Manchester
restaurants. Further large scale development Airport Eastern Link to provide 10 km 36-acre scheme and it is estimated that the City Football Clubs, the National Cycling Centre
is planned for the city including the £800 (6 miles) of new two lane dual carriageway development will create up to 15,000 jobs and and the UK’s best theatre scene outside London
million Manchester Airport City, comprising on the east-west route from the A6 near add approximately £1 billion to the regional with a total of 13 theatres.
of approximately 5 million square feet, which Hazel Grove to Manchester Airport and link to economy over 5 years.
will be the largest UK development since the the M56 will substantially ease congestion in
London 2012 Olympics. the south of the conurbation.
28-32 ST ANN STREET | MANCHESTER
Lancaster COMMUNICATIONS
ROAD AIR
Manchester benefits from an excellent and Manchester Airport is the largest UK regional
highly developed transport infrastructure with airport and is located 13 km (8 miles) south
the M60 Orbital Motorway connecting Greater of Manchester city centre. The airport
Manchester with the M62, M61, M66, M67 and operates over 200 direct flights to worldwide
M56 motorways and providing a direct link to destinations with access to most of western
the National Motorway Network beyond. Europe within 3 hours and daily direct flights
to multiple US cities and Middle East hubs.
The airport benefits from a direct rail link
“60% OF THE UK’S RESIDENTS
Nottingham WITHIN A 2 HOUR DRIVE OF
into the city centre with a journey time of
approximately 15 minutes. A new terminal
THE CITY CENTRE” is planned for the airport which will be
completed in 2023 and will see passenger
numbers increase from the current 20 million
each year to 50 million each year by 2050.
TRAM
The Manchester Metrolink System was the UK’s
first modern street operating light rail system
and now serves a significant proportion of the RAIL
Greater Manchester conurbation, linking Bury, There are two mainline rail stations within
Oldham, Altrincham and Eccles, Ashton-under- the city centre (Manchester Piccadilly and
Lyne, Rochdale, East Didsbury, MediaCityUK Manchester Victoria), which provide intercity
and Manchester Airport to the city centre. The services throughout the UK including direct,
recently completed £185 million Second City regular services to London (fastest journey
crossing has improved the capacity, flexibility time under 2 hours); Edinburgh (3 hours 19
and reliability of the Metrolink system and also minutes) and Cardiff (3 hours 29 minutes).
includes a new tram stop on Exchange Square.
28-32 ST ANN STREET | MANCHESTER
Manchester
Arena
VICTORIA M
STATION
National
ATE
Football
NSG
Museum SHUDEHILL
M
DEA
Manchester
Cathedral
EET
STR The Corn
PEL
CHA
Exchange
Harvey
Nichols
Selfridges
li n k
tro
MANCHESTER
ET
M&S
Me
ARNDALE
STRE
The Lowry
ET
Hotel
RE
Royal
HIGH
ST
SALFORD Exchange MAR
M
Theatre KET
HA
STR
ET
CENTRAL
EET
LD
TRE
ST. ANN’S
O
SQUARE
SS S
ET
House of
RE
M
CRO
Fraser
ST
St. Ann’ s MARKET
R
Church
VE
STREET
LE
KIN. G
PI
ST CC
ET
BRID ADI
RE
GE S SOUT L LY
T. H KIN
ST
G ST. PICCADIL
LY
IN
JOH GARDENS NORTHERN
ND
TA
SPINNINGFI ELDS ALT M QUARTER
ON UN
ST. PICCADILLY
FO
GARDENS
AY
.
ST
TO
ATE
R
ALBERT
PE
UN
SITUATION
NSG
O
SQUARE
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ST
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Town Hall
ET
ET
QUA RE
ST
P IC
T ST.
Y ST
D
REET
N
CAD
LA
MOUN
RT
PETER Manchester
I L LY
PO
STREE Central
PR
ST. JOHNS T Library M IN
GARDENS Radisson CE SA
Hotel
ST. PETER’S
SS CK
VI PICCADILLY
M St Ann Street is situated within Manchester’s prime
SQUARE LL
ET
ST
ST ATIO N
retailing central core, situated in between the retail
Midland
E
RE
ST
R
Great Northern Hotel
EE
ST
RE
T
ET
thoroughfares of Market Street and King Street.
EY
SACKVILLE
SL
GARDENS
O
M
St Ann’s Square connects with St Ann Street at the
ER
W
Manchester
LO
Central
Barbirolli heart of Manchester Shopping District and is home
OX
Square
CASTLEFIELD to exclusive shops, the Royal Exchange Theatre and
FO
EET
RD
TR
Hilton Hotel Bridgewater
HS Bars and restaurants. Nearby retailers include French
STR
Hall T
T OR
ITW
EET
UNIVERSITY OF
Connection, LuLulemon, Russel & Bromley, TAG Heuer,
E
DEANSGATE
E
WH
TR
CASTLEFIELD MANCHESTER
S
M
David M Robinson (Rolex) and Mappin & Webb.
ON
AL B I
DEANSGATE
S TATION
OXFORD ROAD
For identification purposes only ST ATIO N
28-32 ST ANN STREET | MANCHESTER
VAC
AN T
NORTH
IQOS
BUNNLEO
LOGU
RAPHA
CYCLES
RNS
OF KLA
HOUSE
OFFER
UNDER
OS
For identification purposes only
28-32 ST ANN STREET | MANCHESTER
RETAILING
IN MANCHESTER
MANCHESTER IS ONE OF THE UK’S TOP RETAIL DESTINATIONS WITH AN
ESTIMATED RETAIL FLOORSPACE OF 2.75 MILLION SQ FT AND A RETAIL
SPEND OF CIRCA £3.9 BILLION PER ANNUM.
The City ranks 2nd out of the UK PROMIS situated to the south of the retailing core
Centres, benefiting from an estimated primary acting as a major arterial route connecting the
catchment population of 1.6 million people. traditional CBD with Spinningfields. Designer
and speciality retailers located on King Street
The City ranks 1st on both PMA Retail Score and include Hugo Boss, The White Company and
PMA Fashion Score. Major anchor store retailers Belstaff.
represented include Selfridges, Harvey Nichols,
Marks & Spencer, Debenhams, House of Fraser, Deansgate is one of the principal arterial routes
Next and Primark. The prime retail in the city is through the city centre and is regarded as
predominantly focused along the pedestrianised the traditional prime retail and leisure pitch.
Market Street, which complements the Deansgate has the ability to provide both day
Manchester Arndale Centre and the New and night time trade due to its excellent location,
Cathedral Quarter. Manchester Arndale Centre being in close proximity to a wide ranging
comprises 1.4 million sq ft and is anchored by target audience and is still one of the strongest
Next with a full line up of mid-market fashion bar/restaurant pitches. Operators include Las
operators such as Top Man, Superdry, Hollister Iguanas, The Living Room, Cote, Gaucho Grill,
and River Island. The Centre provides a footfall Lunya, JD Wetherspoon and Patisserie Valerie.
of over 40 million and is considered to be one of
the UK’s premier shopping centres. Spinningfields is the city’s leading business
and leisure destination and is one of the UK’s
St Ann Street/St Ann’s Square is the historic most visited city centre destinations with over
retailing core home to exclusive shops linking 5.5 million visitors per year, and daily footfall in
Deansgate, King Street, The Royal Exchange excess of 14,000 people, and annual retail and
Arcade and Market Street. King Street is leisure spend in excess of £80 million.
28-32 ST ANN STREET | MANCHESTER
100,000 80/FTSE 100
2.8
MANCHESTER
is the largest and
based in fastest growing
students and highly
educated workforce
Manchester regional capital
MILLION
centre in the UK
people live in Greater Manchester
Greater Manchester accounts for
£28 BILLION
of the regions GDP making
it one of the most
successful large urban
Zones outside of London
STRONG CIVIC
LEADERSHIP
MANCHESTER
is predicted to outperform
transformational change Berlin, Tokyo and Paris by
delivered by Manchester
3.8%
City Council and the Homes 2015
& Communities Agency over
the last 20 years
- 2020
* Oxford Economics
28-32 ST ANN STREET | MANCHESTER
DESCRIPTION
The property comprises a retail unit arranged over ground, basement
and four upper floors. The tenant trades from ground and first floors
with the basement, second and third floors being utilised as ancillary
accommodation. A customer lift provides access to all the upper
floors (except the fourth floor) and the basement ancillary.
The building is Grade II listed and is situated in a conservation area.28-32 ST ANN STREET | MANCHESTER
ACCOMODATION
The property is arranged over basement,ground and four upper floors
providing the following approximate floor areas:-
Ground Floor Sales 4,023 sq ft (373.75 sq m)
Ground Floor ITZA 1,600 units
Basement Ancillary 4,131 sq ft (383.78 sq m)
First Floor Sales 3,876 sq ft (360.09 sq m)
Second Floor Staff / Offices / 3,939 sq ft (365.94 sq m)
Ancillary
Third Floor Ancillary 4,184 sq ft (388.70 sq m)
Fourth Floor Plant 3,750 sq ft (348.38 sq m)
Total Area 23,903 sq ft (2,220.66sq m)
TENANCY
The property is let to H&M Hennes & Mauritz UK Limited t/a Cos (Company
No: 01413450) on a 15 year full repairing and insuring lease from 24th
June 2019 at a current rent of £400,000 pa exclusive, reducing to £385,000
pa exclusive on the 21st November 2021. The lease is subject to 5 yearly
upward only rent reviews, up to a maximum increase in rent of 15%.
The tenant has break clauses expiring on the 5th, 8th and 11th years of
the term on 6 months’ written notice.
The previous tenant GAP were paying a rent of £400,000 pa.28-32 ST ANN STREET | MANCHESTER
RENTAL
ANALYSIS
It is our opinion that the initial rent of £400,000 pa devalues to a Zone A rent
of £139.75 psf applying a 5% allowance for return/prominence to the ground
floor area, A/10 to first floor sales, A/12 to second floor, A/25 to third floor
ancillary, A/20 to basement ancillary and A/40 to the fourth floor plant.
The rent of £385,000 pa payable from 21st November 2021, devalues to
a Zone A rent of c.£134.75 psf on the same basis, or £16.10 per sq ft.
The rent compares favourably with evidence in the immediate vicinity
which can be set out as follows: -
a) 10 St Ann’s Square (Fat Face)
Lease renewal October 2018 agreed at a rent of £250,000 pax, which
reflected a headline Zone A rate of £200 per sq ft.
b) 24/28 St Ann’s Square (David Robinson Jeweller)
Open market letting August 2018 at a rent of £265,000 pax, which
reflected a headline ZA of c£145 per sq ft and a net ZA tone of c £140 per sq ft.
c) 16 St Anns Square (& Other Stories)
Open market letting February 2016 at a rent of £700,000 pax, which
reflected a headline Zone A of £240 per sq ft and a net tone of £220 per sq ft.
Rents on King Street are currently c.£150 ZA.
TENURE
Freehold.28-32 ST ANN STREET | MANCHESTER
COVENANT
H&M Group is one of the strongest retailing names and consists
of 8 brands with around 4,900 stores in 72 markets. Cos is a
high end fashion brand for women and men, opening its first
store in Regent Street, London in 2007. The company has since
opened 224 stores worldwide.
The most salient accounting information on H&M Hennes &
Mauritz UK Limited can be set out as follows: -
YEAR 30/11/2017 30/11/2016 30/11/2015
GBP 000 GBP 000 GBP 000
£ £ £
Turnover 1,062,485 1,040,814 1,013,202
Pre Tax Profit 37,300 50,386 50,437
Net Worth 156,360 142,198 121,359
The company has been given an Experian Credit Score of
100/100 reflecting very low risk.
VAT
We understand that the property is elected for VAT
purposes and it is anticipated that the sale will be treated
as a Transfer of A Going Concern. (TOGC).
EPC
The property has an EPC rating of C74. Further
information is available from this office.28-32 ST ANN STREET | MANCHESTER
PROPOSAL 2) 24/26 King Street (Body Shop)
Freehold retail investment let to Body Shop sold
in March 2019 for £1.5 million which reflected an
equivalent yield of 5.25%.
We have been instructed to seek offers for the
3) 20/22 King Street (Tast )
freehold interest in excess of £6,600,000 (Six Million
Six Hundred Thousand Pounds) subject to contract Freehold retail investment let to Tast sold in March
and exclusive of VAT, which reflects the following 2019 for c.£2m which reflected a net initial yield of
yield profile, net of purchaser’s costs of 6.64%: - 5.4% and an equivalent yield of 5.25%.
Net Initial Yield 5.68% 4) Equitable Buildings 11/19 St Ann Street
Reversionary Yield 5.46% and 28 St Ann’s Square
Equivalent Yield 5.49% Freehold sale of commercial space let to Ernest Jones
True Equivalent Yield 5.68% and David M Robinson, with the residential upper
parts sold off, was purchased by Aviva in December
This reflects a capital value of c.£276 per sqft. 2018 for £11.55m which reflected a net initial yield
of 5.11%. DWR Jewellers occupied c.4,624 sq ft over
Recent comparable sales evidence can be set out
2 levels paying a rent of £265,000 pa (c.£145 ZA)
as follows: -
and Ernest Jones occupied c.4,434 sq ft over 2 levels
paying a rent of £365,000 pa (c.£135 ZA).
1) 52/56 Market Street, Manchester (Adidas)
The sale price reflected a capital value of £1,275 per sq ft.
Freehold retail investment let to Adidas until June
2026, with a tenant break in June 2021, let at
a rent of £550,000 pa, which reflects a Zone A 5) 35 King Street (Jack Wills)
rent of £258 per sq ft, or £37.31 per sq ft, sold Freehold retail investment let to Jack Wills on a lease
in September 2019 for £10.3m which reflected a to expire September 2020 at a rent of £238,000 pa
net initial yield of 4.99%. The store comprises of sold for £4.75m in December 2017 which reflected a
c.14,710 sq ft arranged over ground and three net initial yield of 4.70%. The unit was rack rented. The
upper floors. The sale price reflected a capital sale price reflected a capital value of c.£404 per sq ft.
value of £699 per sq ft.For further information or to arrange an inspection of the property, please contact: Philip Hay BSc (Hons) MRICS Mike Jameson BSc (Hons) MRICS 020 7637 7100 020 7637 7100 phay@jacksoncriss.co.uk mikej@jacksoncriss.co.uk Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements of representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. 101918. Designed by TCC 10/19.
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