BUILDINGS Mixed-use Trophy Asset in the Heart of Birmingham City Centre - New Street & Stephenson Place, Birmingham, B2 4PY - LoopNet
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BUILDINGS New Street & Stephenson Place, Birmingham, B2 4PY Mixed-use Trophy Asset in the Heart of Birmingham City Centre
New Street & Stephenson Place, Birmingham, B2 4PY 02 Investment Summary •B irmingham is the regional centre for the West Midlands and is firmly established as the UK’s second city with a population of over 1.1m (2019). •B irmingham is a city with ambitious growth plans. Billions of pounds have been invested under the Big City Plan (2010) and the city is now reaffirming its strategy with the launch of Our Future City Plan (2021). • A centrally located, mixed-use hotel and retail investment. •S trategically positioned at the entrance to Grand Central train station and at the junction of New Street, Corporation Street and Stephenson Place, making it one of the highest footfall locations in Birmingham. • Tenants include HSBC, Premier Inn, McDonald’s and Greggs. •F ive tenants with 82% of income secured to ‘5A1 minimum risk’ covenants. • WAULT of 8.62 years to expiry and 7.14 years to earliest breaks. •A sset management opportunities available to drive value. • We are instructed to seek offers in excess of £32,000,000 (Thirty Two Million Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect the following yield profile (after allowing for standard purchaser’s costs of 6.77%). 6.12% NIY Rising to 6.26% in 2023 5.96% NEY 5.95% NRY 4.65% NIY on Hotel 7.06% NIY on Retail Based on current CPI forecasts and our opinion of ERV.
New Street & Stephenson Place, Birmingham, B2 4PY 03
An international city at the heart of the UK Key Statistics
Birmingham is the regional centre for Birmingham is a truly international city. It is at the heart
of the UK’s road and rail network and has one of the
the West Midlands and is firmly country’s busiest international airports, which handled
established as the UK’s second city with over 12.6m passengers in 2019. Billions of pounds have
a population of 1,149,000 (2019), making been spent on infrastructure projects since the launch of The UK’s second A population of
largest economy after 1.149 million making it England’s
it the largest regional centre in England the city’s Big City Plan, with further investment planned London worth £110 billion largest city outside London
for the airport, roads and most significantly into the HS2
by a significant margin. rail network, as the city continues to grow under the
direction of Our Future City Plan (January 2021).
Home to 110,000 companies and Hosting the 2022 Commonwealth
over 715,000 employees, the largest Games – the UK’s largest
concentration outside of London sporting event since the 2012 Olympics
The UK’s top regional city Home to
for start-up creation 5 universities 6 Michelin Star
for the 5th consecutive year and 82,000 students restaurants
Grand Central and
New Street Station redeveloped 42 million HS2 49 minute
at a cost of £750m tourists per year train journey to London
New Street & Stephenson Place, Birmingham, B2 4PY 04
Connectivity
ROAD MIDLAND METRO
Birmingham is in the heart of England’s motorway The Midland Metro has proven popular with the city core
network linking the M1, M5, M6, M40 and M42. 90% of now linked to the whole network. The Grand Central stop
the country’s population can be accessed within 4 hours is located on Stephenson Street, just 100 metres from
from Birmingham city centre. Exchange Buildings. Since the extension through the city
core in 2019, passenger numbers are up significantly and
M1 J.18 38 miles expected to be boosted further once the latest extension,
M5 J.1 5 miles running west to Edgbaston, completes in 2021.
M6 J.6 3 miles
YEAR PASSENGER JOURNEYS
M40 J.3(A) 14 miles
2015/20164.8m
M42 J.3 11 miles
2016/20176.2m
2017/20185.7m
2018/20198.3m
RAIL 2019/20208.0m
Birmingham has three main train stations in the city
centre: Moor Street, Snow Hill and New Street, all
HS2
with regular services across the country. Birmingham
New Street is the busiest interchange station in the UK The UK’s largest infrastructure project will
outside of London with a train leaving the station every consolidate Birmingham as the epicentre
37 seconds and more than 140,000 people passing of the country. Phase I will deliver a new
through every day. high speed rail line reducing journey
times from Birmingham to London to
Birmingham New Street station underwent a £750m
49 minutes. Phase II will go on to link
redevelopment in 2015, increasing the capacity of the
Birmingham to the northern conurbations
station from 32 million passengers per year to 52 million.
of Leeds and Manchester.
London (Euston) 1hr 20mins HS2 will become the world’s most
Manchester 1hr 28mins AIR advanced passenger railway system. It is
Birmingham Airport is located approximately 7 miles south anticipated that around 25,000 direct jobs
Leeds 1hr 46mins
east of Birmingham City Centre but is accessed in less will be created in the region as well as an
Edinburgh 4hrs additional 100,000 in the wider network.
than 10 minutes via Birmingham New Street station.
New Street & Stephenson Place, Birmingham, B2 4PY 05
Catchment & Demographics
Birmingham is firmly established as England’s second city
with a population of 1,149,000 (2019). Furthermore, this
population is forecast to grow +0.51% pa over the period
2019-2024, 19% higher than the UK average.
The city has been ranked the number one English regional city for quality
of life for the past six years running (Mercer Quality of Life Survey 2019)
and boasts one of the fastest growing demographic bases in the country.
Birmingham pulls from a geographic area significantly in excess of its regional
location and attracts additional spending from well beyond its primary
catchment area, particularly from affluent satellite towns like Solihull
and Sutton Coldfield to the south-east and north-east respectively.
The population is boosted by students; there are over 80,000 students,
studying at the five universities in the city.
Derby
Stafford
Leicester
Wolverhampton Sutton
Coldfield
BIRMINGHAM
Solihull Coventry
Dudley
Leamington
Spa Northampton
Worcester
Catchments
Primary
Evesham Secondary
Tertiary
Quarternary
Centre
New Street & Stephenson Place, Birmingham, B2 4PY 06
Tourism
A growing part of the city’s economy is tourism. Birmingham received
a record 42.8m visitors in 2018 and the wider West Midlands region
a total of 131 million visitors. The West Midlands Combined Authority
visitor economy was worth a record £13.1 billion in 2019, up 3.6%
on the previous year.
Among other draws, the city is home to the National Sea Life
Centre, Symphony Hall with its world famous acoustics, Birmingham
Repertory Theatre, the National Exhibition Centre and International
Convention Centre, the iconic Library of Birmingham and six Michelin
starred restaurants, the most in any UK city outside of London.
The city is a key conference/convention destination with over 40%
of the UK’s conference and exhibition business taking place here.
Business in Birmingham
Birmingham is England’s second city in terms of both contribution to
national GDP and population. It has a regional economy worth around
£110 billion. The city has the largest regional economy in the UK and is
home to 110,000 businesses, the highest concentration outside of London.
Major businesses located within Birmingham include: Lloyds, HSBC,
Barclays, DLA Piper, Shoosmiths, Pinsent Masons, Eversheds Sutherland,
KPMG, EY, PWC, Deloitte, Atkins, WSP, Deutsche Bank, Network Rail,
HM Revenue & Customs, Birmingham City Council and the BBC.
Driving Birmingham’s position as the top regional centre for business
is a large, talented work pool, with 715,000 workers, and 20 universities
within a one hour drive.
HSBC’s UK Headquarters - 1 Centenary Square
New Street & Stephenson Place, Birmingham, B2 4PY 07
Retailing in Birmingham
Largest retail centre in the UK, Largest regional shopping Largest volume of available retail
outside London population in England spend in England, outside London
Birmingham has a fantastic retail offer and is the largest retail centre outside London with
an estimated 3,380,000 sq ft of retail floorspace.
Total Retail Expenditure is estimated at £6.179bn Bullring is a Super Regional shopping centre providing
annually, ranking second highest in the UK. The city 1.3 million sq ft over four levels and is anchored by
centre is split between the retail and office districts Selfridges – one of only four Selfridges stores nationally.
and as such, the retail accommodation is concentrated The scheme provides the mass market and premium
in the southern core. retail offers, along with a significant catering provision
The primary retail pitches in Birmingham are New Street, in 25 restaurants.
High Street and the combined Bullring & Grand Central Grand Central is a new 500,000 sq ft development,
shopping centres. which coincided with the significant remodelling of
New Street is the principal pedestrianised East-West Birmingham New Street station. The scheme has
axis through Birmingham’s prime shopping circuit and brought a host of restaurants and premium retailers
is one of the City’s busiest ‘on street’ shopping areas. and seamlessly links with the traditional retail circuit
The majority of the UK’s high street banks have flagship via the pedestrianised Stephenson Place, which abuts
branches on the street and are joined by some of the the subject property.
UK’s best-known retailers, including: Apple, JD Sports, Birmingham also has a wealth of boutique arcades
H&M and soon Sports Direct. and precincts, including Piccadilly Arcade, Great Western
High Street intersects New Street at its eastern end Arcade and Burlington Arcade, which further add
and recently welcomed Primark, who acquired the to the well-established city centre destination.
former Pavilions Shopping Centre and have undertaken
a five year project to create a new flagship that is the
largest Primark in the world. Other key occupiers on
High Street include Boots, M&S and Waterstones.
New Street & Stephenson Place, Birmingham, B2 4PY 08
BRINDLEY PLACE JEWELLERY QUARTER
Utilita Arena Birmingham
The ICC (International
Convenation Centre)
Symphony Hall
Birmingham Repertory Theatre
CENTENARY SQUARE
Library of Birmingham
PARADISE CIRCUS
Town Hall
Birmingham Snow Hill
COLMORE ROW
St Philips Cathedral
Mailbox Birmingham
NEW STREET
Grand Central
STEPHENSON STREET
CORPORATION STREET
HILL STREET
BUILDINGS
BULL STREET
NEW STREET – PRINCIPAL
RETAIL THOROUGHFARE
Birmingham New Street
BULLRING &
GRAND CENTRAL
Bullring Rotunda
Bullring
New Street & Stephenson Place, Birmingham, B2 4PY 09
Situation
The property’s position at the entrance to The strength of the location was highlighted Surrounding retailers on New Street include Apple, The Premier Inn Hotel entrance along with the
when Apple chose to relocate from a store in the Sports Direct, JD Sports and H&M, alongside an McDonald’s, Greggs and Baguette World units
Grand Central and at the junction of New
Bullring to 128 New Street (adjacent) in 2016. array of High Street banks, including TSB, Virgin front Stephenson Place, the principal approach to
Street, Corporation Street and Stephenson Money, Lloyds, Santander (Corporation Street) Grand Central Shopping Centre and Birmingham
The HSBC unit fronts pedestrianised New Street
Place, makes it one of the highest footfall and benefits from a highly prominent corner and Metro Bank. New Street station.
locations in Birmingham. trading position, with a dominant frontage of
32.83 metres (108 feet).
CANNOCK A41 TO
TO M5 J1 TO M6 J7
J11 M6 J6
A5127
M6 Toll HOCKLEY A34
M54
A4540 LOZELLS & EAST
HANDSWORTH A4540
GREAT HAMPTON STREET
M6 TAMWORTH
M42 A38 (M)
NEWTOWN
WOLVERHAMPTON BUILDINGS JEWELLERY QUARTER B4100
A4540
A4540
J9
GOSTA
JEWELLERY PARADE
GREEN
SPRING HILL QUARTER
J1 J6 A4400
DUDLEY A41 M6 A47
J2
A456 JENNENS ROAD
BIRMINGHAM M6
SUMMER HILL ROAD B4135 SAND PITS
SNOW HILL
J3 A45 A4400 B4114
A441 J6 CITY CENTRE
LADYWOOD B4100
A41 NEW STREET
M5
M42 CORPORATION
BRINDLEYPLACE STEPHENSON STREET MOOR STREET
PLACE
SOLIHULL
KIDDERMINSTER A456
NEW STREET BUILDINGS
A38 BULLRING
M42 GAS STREET
J4A BASIN DIGBETH
J3A
CHINESE B4100
A4540
WESTSIDE QUARTER
BATH ROW B4127 BARFORD STREET
BORDESLEY
M40 DERITEND
A456 A4540
M5 TO M5 J3
REDDITCH FIVE WAYS TO M5 J4
New Street & Stephenson Place, Birmingham, B2 4PY 10
Description
The property comprises four highly prominent retail units extending to
27,072 sq ft, a landmark 140 bedroom Premier Inn hotel, rooftop telecoms
and 37 basement car parking spaces.
The property is of concrete frame construction PREMIER INN HOTEL
arranged over ten storeys, with basement, The Premier Inn Hotel occupies a ground floor
ground and eight upper floors. entrance lobby and extends over mezzanine
The property benefits from two external vehicle and eight upper floors, offering panoramic views.
and service access points. The basement There are 140 bedrooms, Thyme branded bar
garage facility provides 27 basement car and restaurant and the usual back of house
parking spaces (22 for Premier Inn and 5 for facilities. The hotel was substantially refurbished,
HSBC) along with secure loading facilities. both internally and externally, prior to Premier
Access is via an electronic security gate off Inn’s occupation in 2013 with the most recent cap
Stephenson Street. An additional common ex in 2019 when 19 bedrooms were upgraded to
service yard is provided at high level to the rear the Premier Inn’s ‘Premier Plus’ specification. The
of the property, which links with the service hotel is the most centrally located Premier Inn in
areas of Grand Central Shopping Centre, Birmingham with occupancy understood to be
accessed from Hill Street and the Grand well in excess of 80% per annum.
Central service roads.
MCDONALD’S RESTAURANT
HSBC BANK Arranged over ground and first floors, the unit
Arranged over ground, basement and first floors, provides restaurant and seating space at ground
the unit provides HSBC with its only Birmingham floor, with seating and ancillary accommodation
City Centre presence and its principal Midlands at first. The unit provides McDonald’s with
retail and commercial branch. The site provides its most centrally located restaurant site in
retail banking facilities, business and private Birmingham which benefits from the large footfall
banking facilities along with associated regional on Stephenson Place and 24 hour trading.
administration facilities for the group.
GREGGS & BAGUETTE WORLD
Arranged over ground and first floors, the
units provide ground floor retail and ancillary
accommodation at first floor.New Street & Stephenson Place, Birmingham, B2 4PY 11 Tenure The property is held long leasehold from the Governors of the Schools of King Edward the Sixth in Birmingham for a term of 200 years from 25th March 2015 (194 years unexpired). The ground rent is paid quarterly in advance and is defined as the higher of: • Base rent of £143,192 per annum • 7% of rents received with deemed rent applied to any vacant units The current ground rent is assumed to be £157,312 per annum (7% of rents received). The freeholder is also entitled to 7% of any capital receipts from occupational dealings. The base rent is reviewed every 40 years. With the next review in March 2055.
New Street & Stephenson Place, Birmingham, B2 4PY 12
Tenancy
The property is let on an effective FRI basis in line with tenancy schedule below and produces a WAULT of 8.62 years to expiry and 7.14 years to break.
LEASE RENT LEASE CONTRACTED CONTRACTED
UNIT TENANT AREA BREAK ERV PA ERV ZONE A COMMENTS
START REVIEWS EXPIRY RENT PA RENT ZONE A
Grd - 8,636 sq ft Regional flagship branch. HSBC’s only representation in
ITZA - 3,850 units Birmingham City Centre. Tenant excluded from service charge
129-130 New Street HSBC Bank PLC FF - 6,812 sq ft 01/01/2011 01/01/2021 31/12/2025 £1,034,000 £231 £900,000 £203 liability for the tower (floors 1-9) - this has never created
B - 2,450 sq ft a service charge shortfall during our client’s ownership.
Total - 17,898 sq ft 5 demised parking spaces.
Grd - 3,229 sq ft
ITZA - 1,678 units Tenant has offered terms to regear. 10 year reversionary lease
10 Stephenson Place McDonald’s Real Estate LLP FF Sales - 1,608 sq ft 01/01/2011 31/12/2025 £350,000 £203 £300,000 £162 with Day 1 up/down review, subject to cap and collar. Further
FF Anc - 963 sq ft information is available upon request.
Total - 5,800 sq ft
Grd - 1,281 sq ft
ITZA - 635 units
14a Stephenson Place Greggs PLC 28/04/2011 28/04/2021 27/04/2026 £121,000 £185 £86,500 £132
FF - 380 sq ft
Total - 1,661 sq ft
Grd - 852 sq ft
ITZA - 423 units
16 Stephenson Place Baguette 4 U Stephenson Ltd Grd Anc - 110 sq ft 01/01/2021 01/01/2025 31/12/2030 £63,000 £132 £63,000 £132 Reversionary lease signed in December 2020.
FF - 751 sq ft
Total - 1,713 sq ft
Retail Sub-total 27,072 sq ft £1,568,000 £1,349,500
Tenant only break clause. Right to use 22 parking spaces.
Two years from next CPI linked review. Forecast rent increase
“Premier Inn Hotels Ltd “09/09/2023
to £718,363 pa at September 2023 rent review.
Hotel (Guarantee from Whitbread 140 beds 09/09/2013 09/09/2028 08/09/2033 08/09/2038 £664,680 £4,748 £840,000 £6,000
The rent review is increased by reference to CPS over the
Group PLC)” 09/09/2033”
preceding 5 year period compounded yearly, but subject to
a cap of 5% on the increase in the CPI in any one year period.
Hotel Sub-total £664,680 £840,000
EE Ltd & Hutchison 3G
Telecoms Antennae 1 22/12/2010 21/12/2020 £14,633 £5,000 Holding over at £14,633 pa.
UK Ltd
Telecoms Sub-total £14,633 £5,000
Substation 1 24/06/1966 14/03/2070 £1 £1
Substation 2 24/07/2013 22/03/2070 £1 £1
Substation Sub-total £2 £2
Gross Income £2,247,315 £2,194,502
The rent is the higher of the base rent or 7% of rents received
Headlease 25/03/2015 24/03/2215 -£157,312 -£153,615 with deemed rent applied to any vacant units. The base rent for
the first 40 years of the term is £143,192 pa.
Net Income £2,090,003 £2,040,886New Street & Stephenson Place, Birmingham, B2 4PY 13 Asset Management Opportunities HSBC As HSBC’s only Birmingham City Centre presence and its principal Midlands retail and commercial branch, the building is vital to the bank. As such, HSBC are looking to re-fit and refurbish all customer facing areas in 2021. The purchaser may have the opportunity to work with HSBC to improve the façade (as shown in the adjoining CGI) and include double height glazing, in line with other units on New Street. PREMIER INN Due to the hotel’s high occupancy rate, Premier Inn have expressed interest in taking more space in the building. Further information is available upon request. MCDONALD’S As McDonald’s most centrally located restaurant site in Birmingham and a 24 hour trading restaurant, we understand the unit is a key part of McDonald’s portfolio. As a result, McDonald’s have expressed interest in a reversionary lease, taking the lease expiry to 2035. Further information is available upon request.
New Street & Stephenson Place, Birmingham, B2 4PY 14
Retail Occupational
Activity
PASSING RENT
£640,000 PA PASSING RENT
£1,125,000 PA
As one of the UK’s top shopping destinations, Birmingham
has demonstrated excellent rental growth and resilience
in recent times. Prime rents on the Upper Mall West of
the Bullring peaked at £320 Zone A, plus service charge,
with New Street offering a rental discount despite its
PASSING RENT
exceptionally high footfall. We are aware of the following £900,000 PA
recent occupational activity and highlight current passing
PASSING RENT
rents elsewhere in the city on the adjoining street plan. £670,000 PA
PASSING RENT
TRANSACTION
ZONE A RENT
£650,000 PA
LOCATION
RENT PA
TENANT
DATE
140 The
Jan-20 OML £275,000 £260
New Street Works
PASSING RENT
141
RBS Oct-19 LR £400,000 £279 £1,000,000 PA
New Street
85-88 Metro
Nov-18 OML £1,000,000 £230
High Street Bank
10 PASSING RENT
Tui Nov-18 OML £240,000 £284
New Street £425,000 PA
142-145
Lush Jul-18 OML £570,000 £253 PASSING RENT
New Street £570,000 PA
PASSING RENT
1-3 JD PASSING RENT £400,000 PA
Jul-18 OML £650,000 - £510,000 PA
New Street Sports
141 Thomas
Jun-18 Regear £205,000 £269
New Street CookNew Street & Stephenson Place, Birmingham, B2 4PY 15
Hotel Market ADDRESS ROOMS TENANT (GUARANTOR)
TERM
CERTAIN
PRICE NIY
RENT/
BED/PA
TRANSACTION
TYPE
DATE
Prior to the 2020 pandemic, Birmingham’s hotel sector Exchange Square, Premier Inn Hotels Ltd Forward
235 25 years £37.50m 4.20% £6,320 Nov 20
Birmingham (Whitbread Group PLC) Funding
was forecasting a period of substantial growth as it
prepared to welcome a boost in tourism numbers ahead Forward
Glasfryn Road, St Davids 63 Premier Inn Hotels Ltd 30 years £6.04m 4.35% £4,500 Nov 20
of the region hosting the Commonwealth Games 2022 Commitment
and Coventry City of Culture 2021.
Bridgewater Gateway 100 Whitbread Group PLC 20 years £10.33m 4.35% £4,800 Investment Mar 20
Birmingham had seen one of the UK’s highest increases
in Revenue Per Available Room (RevPAR) of 5%, only Premier Inn Hotels Ltd Forward
Ashford Road, Faversham 84 25 years £10.65m 4.14% £5,750 Jul 20
behind other major tourist destinations, such as Brighton, (Whitbread Group PLC) Funding
Gatwick and Liverpool, yet the city remains an affordable Forward
Bournemouth 105 Premier Inn Hotels Ltd 20 years £13.27m 4.15% £5,600 Apr 19
destination with an average room rate of £71.12 Commitment
Forward
Milton Keynes 126 Premier Inn Hotels Ltd 20 years £23.70m 4.24% £5,700 Mar 20
Despite the headwinds that Covid-19 has Funding
created, Birmingham remains extremely Sheffield 126
Premier Inn Hotels Ltd
25 years £10.33m 4.35% £3,800 Investment Feb 19
(Whitbread Group PLC)
well positioned to continue its growth as
a key destination for business and leisure Waterloo Street,
152 Premier Inn Hotels Ltd 20 years £26.55m 4.12% £6,557 Investment Apr 17
Birmingham
demand with the subject budget focussed
operator at the top of the pack as the UK’s
top choice for overnight budget stays.
Premier Inn reported an average occupancy close
to 80% across its portfolio in 2019, 5% ahead of the
Birmingham average of 74.2%. The budget sector has
been particularly resilient during the pandemic with
the subject hotel, the most centrally located of the
Premier Inn stock, having remained trading throughout
the pandemic.
Hotel Thyme RestaurantNew Street & Stephenson Place, Birmingham, B2 4PY 16
Retail Investment Comparables
ADDRESS TENANTS WAULT PRICE NIY DATE
TK Maxx, Argos, Sainsbury’s, Clas Ohlson WAULT 9.5 to expiry,
Broad Gate, The Headrow, Leeds Q. £90m Q. 6.58% Under Offer
and 11 office tenants 4.1 to break
48-50 Market Street, Manchester Virgin Money 13 years unexpired £11.80m 5.40% Oct 20
7 years to expiry, 2
52-56 Market Street, Manchester Adidas £10.31m 5.00% Oct 19
years to break
Caxtongate II, 41-42A New Street and Charles Tyrwhitt, Muji, Jigsaw, White Stuff, WAULT 6.2 to years to
£12.44m 5.95% Dec 18
37-43 Cannon Street, Birmingham Bravissimo and residential ground rents expiry, 5.4 to breakNew Street & Stephenson Place, Birmingham, B2 4PY 17
New Street & Stephenson Place, Birmingham, B2 4PY 18
Covenants Income Analysis
HSBC BANK PLC (5A1) MCDONALD’S REAL ESTATE LLP (O3) D&B RATING
HSBC is one of the world’s largest banking and financial services companies.
Offering services in commercial, investment, private, and retail banking, as
McDonald’s is the world’s most recognised fast food operator with over
38,000 restaurants across 119 countries. The company is also the 5A1
82%
well as wealth management, HSBC has around 40 million customers across world’s largest chain of quick service restaurants serving over 10 million
64 countries worldwide and 16 million in the UK alone. customers daily.
Other
18%* * 16% in favour of
McDonald’s Real Estate LLP
The bank is wedded to Birmingham and purchased its UK Headquarters at There are currently in excess of 1,300 McDonald’s restaurants in the UK
One Centenary Square, Birmingham on a 250 year long leasehold basis in employing over 38,000 people. McDonald’s continues to expand its UK
INCOME SPLIT BY TENANT
2015. The 210,000 sq ft office opened in 2018 and provides accommodation operations with 40 new restaurants opening in 2019 and further planned
for 2,500 staff. as part of an expansion plan worth in excess of £1bn.
HSBC Bank PLC
46%
HSBC Bank PLC
Turnover
FYE 31/12/2019 FYE 31/12/2018
£14,685,000,000 £16,670,000,000
FYE 31/12/2017
£19,760,000,000
McDonald’s Real
Estate LLP
FYE 31/12/2018 FYE 31/12/2017 FYE 31/12/2016 30%
Premier Inn Hotels Ltd (Guarantee from Whitbread Group PLC)
Pre-Tax Profit (Loss) (£872,000,000) £1,974,000,000 £2,370,000,000 Turnover £90,706,000 £91,172,000 £87,964,000
Tangible Net Worth £22,423,000,000 £24,252,000,000 £37,526,000,000 Pre-Tax Profit (Loss) £599,059,000 £79,054,000 £151,040,000 16%
McDonald’s Real Estate LLP
Tangible Net Worth £121,875,000 £109,269,000 £109,269,000
5%
Greggs
PREMIER INN HOTELS LTD (5A2), Guarantor Whitbread Group PLC (5A1)
Whitbread PLC is the largest hotel and restaurant company in the UK, with
GREGGS PLC (5A1)
Greggs is a leading FT250 food retailer with over 1,700 shops nationwide
3%
Baguette 4 U Stephenson Ltd
Premier Inn the market leader in the budget sector, accounting for 11% of
market share and operating in excess of 800 hotels across the UK. Premier inn
was also one of the only hoteliers to continue paying rent throughout 2020.
and in excess of 20,000 staff. Despite forecasting its first loss since its stock
market listing in 1984 as a result of the pandemic, Greggs is continuing its
1%
EE Ltd & Hutchison 3G UK Ltd
expansion plans and intends to open 100 new stores in 2021 alone.
Premier Inn Hotels Ltd FYE 27/02/2020 FYE 28/02/2019 FYE 01/03/2018
Greggs PLC FYE 28/12/2019 FYE 29/12/2018 FYE 30/12/2017
INCOME SPLIT BY USE
Turnover £911,500,000 £905,100,000 £874,900,000
Pre-Tax Profit (Loss) £163,100,000 £243,800,000 £245,700,000 Turnover £1,167,900,000 £1,029,347,000 £960,005,00
Retail
46%
Tangible Net Worth £1,127,000,000 £1,135,000,000 £940,000,000 Pre-Tax Profit (Loss) £108,300,000 £82,618,000 £71,945,000
Tangible Net Worth £334,200,000 £316,987,000 £289,753,000
Hotel
30%
Whitbread Group PLC FYE 27/02/2020 FYE 28/02/2019 FYE 01/03/2018
Turnover £2,072,000,000 £2,049,000,000 £3,295,000,000
Restaurant
24%
Pre-Tax Profit (Loss) £280,000,000 £259,800,000 £548,400,000
Tangible Net Worth £3,576,000,000 £6,027,000,000 £2,502,000,000 1%
TelecomsNew Street & Stephenson Place, Birmingham, B2 4PY 19
EPCs
129-130 New Street (HSBC Bank PLC) D90 Proposal
Hotel (Premier Inn Hotels Ltd) B46
We are instructed to seek offers in excess of £32,000,000
10 Stephenson Place
(Thirty Two Million Pounds), subject to contract and
(McDonald’s Real Estate LLP) D95
exclusive of VAT. A purchase at this level would reflect
14a Stephenson Place (Greggs PLC) D94 the following yield profile (after allowing for standard
16 Stephenson Place purchaser’s costs of 6.77%).
(Baguette 4 U Stephenson Ltd) D87
6.12% NIY Rising to 6.26% in 2023
5.96% NEY 5.95% NRY
Service Charge 4.65% NIY on Hotel 7.06% NIY on Retail
Based on current CPI forecasts and our opinion of ERV.
There is a service charge operating at the property.
The service charge budget for the year ending 31/12/2021
is £172,765. This reflects a low cost of £1.76 per sq ft
inclusive of the hotel. Further information is available
on request.
Data Room
A data room has been prepared, containing relevant
supporting documents and information. Access is
available upon request
VAT
The property is elected for VAT. It is therefore anticipated
that the sale will be treated as a Transfer of a Going
Concern (TOGC).BUILDINGS Further Information For further information or to arrange an inspection, please contact: CHARLES FLETCHER T: +44 20 7861 1450 M: +44 7838 575 063 E: charles.fletcher@knightfrank.com SAM WATERWORTH T: 020 3909 6821 M: 07810 657 744 E: sam.waterworth@knightfrank.com BEN WISHER T: +44 121 233 6456 M: +44 7436 099 850 E: ben.wisher@knightfrank.com IMPORTANT NOTICE (1) Particulars: These particulars are not an offer, an invitation or a contract, nor part of one. Any information about price or value contained in the particulars is provided purely as guidance, it does not constitute a formal valuation and should not be relied upon for any purpose. You should not rely on statements by Knight Frank in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Knight Frank has no authority to make any representations about the property. No responsibility or liability is or will be accepted by Knight Frank LLP, seller(s) or lessor(s) in relation to the adequacy, accuracy, completeness or reasonableness of the information, notice or document supplied or otherwise made available to any interested party or its advisers in connection with the Proposed Transaction. All and any such responsibility and liability is expressly disclaimed. (2) Images: Photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. (5) Financial Crime: In accordance with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 and Proceeds of Crime Act 2002 Knight Frank LLP may be required to establish the identity and source of funds of all parties to property transactions. Knight Frank is the trading name of Knight Frank LLP. Knight Frank LLP is a member of an international network of independent firms which may use the “Knight Frank” name and/or logos as part of their business name and operate in jurisdictions outside the United Kingdom. No “Knight Frank” entity acts as agent for, or has any authority to represent, bind or obligate in any way, any other “Knight Frank” entity. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names (this can also be found at http://www.knightfrank.co.uk/about-us). April 2021. carve-design.co.uk 15014/4
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