MANCHESTER - PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE - Allsop
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01 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
MANCHESTER
MANCHESTER
02 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
HILTON MANCHESTER MANCHESTER TOWN ARNDALE MARKET CIRCLE
HOTEL ARENA VICTORIA HALL SHOPPING CENTRE STREET SQUARE
DEANSGATE MANCHESTER CENTRAL BRIDGEWATER ST PETER’S FIRST STREET 624 UNIT NEW A57(M)
CASTLEFIELD CONVENTION COMPLEX HALL SQUARES FUTURE PHASE RESIDENTIAL MANCUNIAN WAY
DEVELOPMENT
MANCHESTER
A unique opportunity to acquire Manchester’s latest destination leisure scheme in the heart of the city centre. Manchester is the UK’s second city alongside London and the economic and cultural capital of the North West. The largest and fastest-growing regional city in the UK. First Street is a thriving destination and now established as one of Manchester’s most successful mixed use development. Located adjacent to HOME, a centre for international contemporary art, theatre and a five screen cinema which boasts over 850,000 visitors a year. The property comprises 9 units and totals 32,736 sq ft Occupiers include Sainsbury’s, Starbucks, Pizza Express, Junkyard Golf, Tiffin Rooms, Dockyard, BJ’s along with the, MasterChef winning Simon Wood Restaurant. A long Weighted Average Unexpired Lease Term of 12.5 years to lease expiry and 9.5 years to break. Providing a good tenant mix of national and independent operators. Current net annual income totals £788,760 per annum which reflects an average of only £24 per sq ft. The latest letting has set a new tone at £37.71 per sq ft proving the significant reversionary potential. The headline Estimated Rental Value is circa £899,500 per annum. Offers in excess of £11,000,000 (Eleven Million), subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 6.72%, after the deduction of purchaser’s costs of 6.8% and a potential reversionary yield of 7.66%.
04 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
WHITWORTH STRE
ET WEST
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TONY WILSON
PLACE
ISABELLA BANKS ST
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NUMBER
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ST
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NO.8
ION
FIRST STREET
JAMES GRIGOR
STR
SQUARE
EET
FUTURE
COMMERCIAL PHASES
PRS
RESIDENTIAL
SCHEME
Click this link to view an interactive
website of the First Street Scheme.
North
MANCHESTER
05 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
Manchester is widely established as the UK’s second city and is the largest and
LOCATION
fastest growing regional capital in the UK. It is a dynamic environment for successful
growth and a vital national hub known for its commerce, education and culture.
The city has a retail catchment of 1.75 million people and approximately 7 million
people within a 1 hour drive time. Over 80 of the FTSE 100 companies are
represented in Manchester with forecasted office employment growth of 2% per
annum over the next 10 years.
The city has a tourism economy worth over
£7.5 Billion with over 115 million visitors a year.
Greater Manchester is home to 5 world class universities. These continue to attract the highest calibre
researchers and teachers, with the University of Manchester boasting 25 Nobel prize winners and more
nobel Laureates on their staff than any other UK university. It has the largest student population in
Europe with over 100,000 people and has the second largest number of international students in the UK.
The graduate retention rate within Manchester is over 50% with 94% of University of Manchester
graduates going straight into employment or further study.
Manchester is the first UK city to be awarded the prestigious accolade of European City of Science
acknowledging Manchester’s innovative endeavours in science and technology.
MANCHESTER
06 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
GLASGOW STOCKHOLM
TRANSPORT
348 kms (214 miles) 2.5 hours
EDINBURGH
3 hours 15 minutes
336 kms (210 miles)
3 hours 16 minutes
Manchester International Airport is approximately 10 miles south of the city centre and is the
busiest airport in the UK outside London. The airport handles over 23m passengers a year LEEDS
64 kms (40 miles)
with over 100 airlines making more than 200 international flights every day serving 225 55 minutes
destinations worldwide. First street sits adjacent to the main arterial route into Manchester LIVERPOOL
55 kms (44 miles)
from the Airport and Manchester’s affluent south Manchester conurbations. 47 minutes
AMSTERDAM
1.5 hours
FRANKFURT
Manchester is served by four stations with the busiest, 1.5 hours
NEW YORK
BIRMINGHAM
Manchester Piccadilly, providing frequent and fast services to 8 hours
128 kms (80 miles)
1 hour 26 minutes
London Euston in just over two hours. The second business station PARIS
1.5 hours
by passenger numbers is Oxford Road which is approximately 100m from the property. GENEVA
2 hours
HS2 will arrive into Manchester Piccadilly Station with a planned completion date of 2033.
LONDON
290 kms (181 miles) DUBAI
2 hours 8 minutes 7 hours
MADRID
3 hours
SINGAPORE
13 hours
The Metrolink is Manchester’s popular light rail transit
system which has improved access across the city centre
enabling a reduction in road congestion. The recently
opened second city crossing has assisted in increasing
ECCLES
250
P+R Weaste
Langworthy
the capacity across the system. The Deansgate Castlefield
station is located immediately adjacent to First Street.
Ladywell 217
Broadway P+R
Bowker 369
Vale Prestwich Whitefield Milnrow Newbold ROCHDAL
This is one of the few stations where travellers can get to
P+R
P P
Mediacityuk Harbour City BURY Newhey TOWN
Crumpsall Heaton P
Besses P+R
Radcliffe Kingsway Rochdale CENTRE
P
Anchorage Park o’ th’ Barn
216
Business Park Railway
ALTRINCHAM
all destinations on the network. It is also one of only
P P
Station
Salford Quays Abraham Moss
P+R
100 Shaw and Crompton
Navigation Derker
Exchange Quay
Road
Pomona
Queens
Road Oldham
270
P+R
P+R
251 three stations which are linked to national rail stations.
P+R
Timperley DEANSGATE- Central South Central Oldham
81 Old Trafford Bar CASTLEFIELD 190
Mumps
MANCHESTER 108
Sale Stretford Victoria Park Failsworth Chadderton Westwood
Trafford
P+R
P+R
AIRPORT
St Peter’s Monsall Newton Hollinwood Freehold Oldham
Brooklands Dane
P P
Shadowmoss Square Market Heath and King Street
Road Cornbrook Street Moston
St Werburgh’s
Road Firswood Shudehill
Robinswood Barlow Moor Road
Peel Hall Chorlton
Road 300
P+R
Moor Northern Withington Piccadilly Piccadilly Etihad Clayton Cemetery Ashton
Benchill Roundthorn Road Moor Sale 200
Wythenshawe Gardens Campus Hall Road Audenshaw West
Water Burton Road P+R
ASHTON-
Town Centre Park UNDER-LYNE
Crossacres Martinscroft Baguley Wythenshawe 302 New Holt Velopark Edge Lan e Droylsden Ashton P+R
Park P+R
EAST Islington Town Moss
195
West
Didsbury Didsbury DIDSBURY
Village
MANCHESTER
07 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
EVERSHEDS
Q PARK
VITA STUDENT
HACIENDA
APARTMANTS HOME
NUMBER ONE FIRST STREET
INSIDE HOTEL
First Street opened in April 2015 with the first phase of the
SITUATION - FIRST STREET
SAINSBURYS
development now complete. It has seen the delivery of:
“Home” Greater Manchester’s 600,000 sq ft Arts Centre,
Corner House & Library Theatre
INNSIDE by Meliá - 208 bed 4 star hotel
9 new individual restaurants and bars
New public realm and outdoor space
Q-Parks - 700 space multi-storey car park
VITA - luxury student accommodation scheme comprising 279
apartments
The development has already transformed the wider area by providing high quality amenities, exciting
350,000 sq ft of Grade A Offices with a further activities and a new sense of place which has attracted a number of new occupiers into the city including
phase due to start on site Ford, Autotrader, Gazprom and Jacobs, alongside Amaze, Odeon and WSP.
Construction is also about to
begin on a further 624 residential
units on the south element of
the site.
MANCHESTER
08 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
Within the development is a new £25million arts and cultural centre incorporating
FIRST STREET
5 digital cinema screens, galleries and a 500 seat theatre. This cultural centre
together with a hotel, a multi-storey car park and restaurant/shop units surrounds
a public square known as Tony Wilson Place has been carefully designed to
accommodate future activities for businesses and their employees.
The First Street community now
provides a rich, vibrant, culture
led, 24/7 environment providing
the characteristics required to
encourage, attract and retain
other businesses and
their staff.
First Street has quickly established itself as
Manchester’s leading destination for inward
occupiers to the city region through its unrivalled
proximity to both mainline rail and Metrolink
infrastructure, as well as attracting some of the city’s
indigenous occupiers. The following office occupiers
have been attracted to First Street to date: Amaze, Jacobs
Engineering, Autotrader, Ford, Gazprom, WSP and Odeon.
Office rents have grown by circa 51% (5.3% per annum)
since 2011.
MANCHESTER
09 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
The leisure offer includes a Pizza Express,
Sainsbury’s Local, Indian Tiffin Room,
Starbucks, Bunny Jacksons and Gasworks.
New entrants to the scheme which are all now
open include a new restaurant by MasterChef
winner Simon Wood and Junkyard Golf.
The scheme forms part of a wider area that is known as “Corridor Manchester” which is a circa 240
ha area stretching south of the city centre from St Peters Square to Whitworth Park. This is the home to
many of Manchester’s Smart City projects and Digital initiatives along with the TMT sector.
The Oxford Road Corridor is home to a large education, scientific and digital community, and has a
wealth of knowledge intensive organisations and businesses, including particular concentrations of bio-
medical, pharmaceuticals, clinical trials, medical devices and related healthcare. It offers superb co-location
opportunities for companies to have access to university research, laboratories, incubation and grown on space;
and university students.
MANCHESTER
10 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
First Street links the established leisure
pitches of Oxford Road and Deansgate Locks.
DESCRIPTION
The scheme complements the resurgent Whitworth Street West leisure offer.
The site is bounded to the East by the Oxford Road Corridor, home to the largest
university campus in Europe including: Manchester University, Manchester Metropolitan
University and the Central Manchester University Hospital Trust.
The property comprises nine units split into three distinct elements.
Units 1-3
A stand-alone ground floor and first floor self-contained building which is multi-let
Unit 4
A stand-alone ground floor restaurant unit which is let to Pizza Express
Units 5-9
A multi-let row of ground floor units within the multi-storey car park
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11 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE T
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UNIVERSITY
MANCHESTER ROYAL
INFIRMARY HOSPITAL
MANCHESTER12 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
TENANCY SCHEDULE
The property is let to nine tenants with a Weighted Average unexpired Lease Term of 12.5 years to lease expiries and 9.5 years to tenant break options as per the tenancy schedule below:
Unit Tenant Name Total Lease Expiry Next Breaks Headline Comments Deposit
No Area (ft²) Start Date Review rent pa
1 Junkyard Golf Club (Manchester) Limited 8,255 30/6/2017 29/6/2027 30/06/2022 £125,000.00 £14.86 Minimum uplift at review to £145,000 £62,500+VAT
RPI linked rent review capped
2 Sainsburys Supermarkets Ltd 4,008 27/4/2015 26/4/2030 27/4/2020 £91,000.00 £23.00
and collared at 1-3.5% pa
3 SNS Business Limited t/a Tifin Rooms 4,045 3/11/2015 2/11/2030 3/11/2020 £110,000.00 £27.66
12 month notice on break
4 Pizza Express (Restaurants) Ltd 3,211 3/8/2015 2/8/2040 8/3/2020 03/08/2030 £84,000.00 £26.91 Doesn’t contribute to building service charge
as stand alone unit
5&8 Dockyard First Street Ltd 5,047 26/5/2016 25/5/2031 26/5/2021 £135,000.00 £27.37
Stepped rents £75,000 on 21.6.19
6 Wood Restaurants Ltd 3,552 21/6/2017 20/6/2032 21/06/2022 21/6/2027 £100,000.00 £27.99 £100,000 on 21.6.20 £25,000+VAT
6 months notice on break
Queensway Coffee Houses Ltd
7b 1,597 18/4/2016 17/4/2026 18/04/2021 £43,260.00 £28.88 21,630+VAT
t/a Starbucks
7a BJ’s Juke Joints Ltd t/a Bunny Jackson’s 1,894 7/4/2016 6/4/2041 07/04/2021 6/4/2026 £58,000.00 £29.00 12 months notice on break 29,000+VAT
Unit re-let after 2 month void at rent 21%
21/6/2022 &
9 Vertigo Foods Ltd 1,127 21/6/2019 20/6/2029 21/6/2024 £42,500 £37.71 higher than previous rent
21/6/2026
6 months notice on break
32,736 £788,760
There is a comprehensive Estate Charge which is fully recovered from the occupational tenant’s. The current budget is £30,766.24 per annum, reflecting £0.94 per sq ft.
For the avoidance of doubt there are no shortfalls.
The passing rent is £788,760 which reflects an average of only £24 per sq ft which is low compared to £35 psf at the University, £40psf at Spinningfields and
£47psf at The Printworks. The latest letting has set a new tone of £37.71 per sqft for the scheme proving significant reversionary potential.
MANCHESTER13 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
TENURE
The property is held under
three separate long lease hold
interests at a peppercorn rent.
More information is available
upon request.
COVENANT INFORMATION
The property is let to an excellent mixture of national multiple operators, regional multiple and independent operators.
This provides a vibrant and exciting destination for visitors with complementary offers.
We have summarised their most recent accounts into the table below.
% of
Tenant D&B Creditsafe Turnover Pre-Tax Net Assets
income
Unit 1- Junkyard Golf Club (Manchester) Limited 16% A3 74 - - £576,039
Unit 2 - Sainsburys Supermarkets Ltd 12% 5A1 73 £23,606,000,000 £187,000,000 £4,712,000,000
Unit 3 - SNS Business Limited t/a Tifin Rooms 14% C3 41 - - £104,960
Unit 4 - Pizza Express (Restaurants) Ltd 11% 5A1 95 £396,559,000 £68,473,000 £714,637,000
Unit 5 & Unit 8 - Dockyard First Street Ltd 17% N3 24 - - -£198,800
Unit 6 - Wood Restaurants Ltd 13% N3 21 - - -£275,675
Unit 7b - Queensway Coffee Houses Ltd t/a Starbucks 5% 1A4 36 £6,954,628 -£190,696 £1,275,532
Unit 7a - BJ’s Juke Joints Ltd t/a Bunny Jackson’s 7% O3 46 - - -
Unit 9 - Vertigo Foods Ltd 5% O3 47 - - -
More information is available upon request.
MANCHESTER14 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
Manchester is one of the UK’s most vibrant cities and is
RETAIL & LEISURE MARKET
the largest retail and leisure market in the North West
of England. Its large catchment enjoys strong consumer
spending; and the ever expanding, working population
within the city has a big influence on retail shopping
patterns.
The city is a thriving tourist and retail destination with an
estimated shopping population of 1,012,000 ranking the
city sixth of the PROMIS centres. In terms of annual retail
spend, it is ranked 2nd of the Top 200 PROMIS retailing
centres with a retail spend of approximately £3.9 billion per
annum.
Manchester continues to thrive as a retail and leisure
destination, attracting international as well as new domestic
retailers.
Manchester Prime Retail Rents
Market Street £300 per sq ft ITZA
Arndale Centre £275 per sq ft ITZA
King Street £150 per sq ft ITZA
Manchester Prime Leisure Rents
Corn Exchange £50 per sq ft
Printworks £47 per sq ft
Spinningfields £45 per sq ft
Upper King Street £40 per sq ft
Manchester University £35 per sq ft
MANCHESTER15 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
MANCHESTER INVESTMENT MARKET
Overall UK investment volumes were £64bn in 2018 which was a second consecutive year of increased activity and was 33% ahead of the 10-year average. There was £20.1bn of investment
outside of London in 2018, with £3.5 billion of that in the North West. This was an increase of 25% compared to 2017.
Manchester is now ranked 46th globally for direct commercial real estate investments since 2008 with over £5bn transacted. It is the only UK city alongside London to feature in the top
50, demonstrating its credentials as a highly liquid market. Purchasers of Manchester assets in the past 18 months have originated from Asia, the Middle East, the US and Canada, along with
established investors from other European nations.
Overseas investors have also identified Manchester as a long-term strategic opportunity, evidenced by the significant sums already invested by Chinese investors in Airport City and NOMA;
and Abu Dhabi investors in Manchester City Football Club and the Etihad Campus.
Recent transactions include
Address Tenant AWAULT Rent (pa) Price Yield
The Pavilion, Spinningfields The Ivy 20 years £500,000 £11.7m 4.00% NIY
Oast House, Spinningfields New World Trading Co 25 years £409,000 £10.45m 4.00% NIY
8 King Street Multi-let 4 years £506,000 £8.7m 5.45% NIY
EPC
The EPC for each unit is available upon request.
VAT
The property is elected for VAT and therefore is
anticipated to be a TOGC (Transfer of a Going Concern).
MANCHESTER16 PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
PROPOSAL
Offer in excess of £11,000,000 (Eleven Million) subject to contract and exclusive of VAT. An acquisition at this level would reflect a net initial yield of 6.72%
after deduction of purchaser’s costs of 6.8%. and a potential reversionary yield of 7.66%.
FURTHER INFORMATION
JAMES PORTEOUS ANDREW HILBOURNE
James.porteous@eu.jll.com Andrew.hilbourne@eu.jll.com
0161 238 7408 0161 238 6284
JEREMY HODGSON JAMES SALMON
Jeremy.hodgson@allsop.co.uk James.salmon@allsop.co.uk
0207 543 6709 0207 543 6880
© Crown Copyright 2019. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to
be correct is not guaranteed and it does not form any part of any contract.
Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor
constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers,
MANCHESTER M15
tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority
to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time
they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law. Copyright © Jones Lang LaSalle IP Inc. June 2019.
All rights reserved.
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