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MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE01
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE02
HILTON HOTEL
TOWN HALL
MANCHESTER VICTORIA
MANCHESTER CENTRALCONVENTION COMPLEX
A57(M) MANCUNIAN WAY
FIRST STREET FUTURE PHASE
DEANSGATE CASTLEFIELD
MANCHESTER ARENA
ARNDALE SHOPPING CENTRE
BRIDGEWATER HALL
ST PETER’S SQUARES
MARKET STREET
624 UNIT NEW RESIDENTIAL
DEVELOPMENT
CIRCLE SQUARE
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%.
MANCHESTER
FUTURE COMMERCIAL PHASES
JAMES GRIGORSQUARE
TONY WILSON PLACE
WHITWORTH STREET WEST
MED
LOC
K STREET ALBIO
N STREET
NO.8 FIRST STREET
NUMBER ONE
FIRST STREET
ISABELLA BANKS ST
JACK ROSENTHAL STREET
THE HO
RNIMAN STREET
PRS RESIDENTIAL
SCHEME
North
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE04
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE05
Manchester is widely established as the UK’s second city and is the largest and 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.
LOC
ATIO
N
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
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE06
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 with over 100 airlines making more than 200 international flights every day serving 225 destinations worldwide. First street sits adjacent to the main arterial route into Manchester from the Airport and Manchester’s affluent south Manchester conurbations.
Shaw and Crompton
KingswayBusiness Park
Milnrow NewboldNewhey
Derker
Monsall
Failsworth
FreeholdHollinwood
Westwood
BURYRadcliffe
Prestwich Whitefield
Abraham Moss
Crumpsall
Edge Lan eVelopark Droylsden
Audenshaw
Shudehill
Brooklands
ALTRINCHAM
SaleTimperley
SaleWaterPark New
Islington
EtihadCampus
ClaytonHall
HoltTown
MarketStreet
CentralPark
SouthChadderton
OldhamCentral Oldham
Mumps
NewtonHeath and
Moston
OldhamKing Street
Besseso’ th’ Barn
HeatonPark
BowkerVale
QueensRoad
RochdaleRailwayStation
DEANSGATE-CASTLEFIELD
St Peter’sSquare
AshtonMoss
CemeteryRoad
AshtonWest
WythenshawePark
WestDidsbury
Baguley
NorthernMoor
DidsburyVillage
Trafford BarOldTrafford
Exchange Quay
Salford Quays
Anchorage
St Werburgh’sRoad
PiccadillyGardens
NavigationRoad
DaneRoad
MoorRoad
Barlow Moor Road
Roundthorn
Stretford
Benchill
MartinscroftCrossacres
Shadowmoss
Robinswood RoadPeel Hall
MANCHESTERAIRPORT
EASTDIDSBURY
ASHTON-UNDER-LYNE
ROCHDALTOWNCENTRE
WythenshaweTown Centre
Firswood
Chorlton
Withington
Burton Road
Broadway
Langworthy
Mediacityuk
Cornbrook
LadywellECCLES
Weaste
Harbour City
Pomona
Victoria
Piccadilly
P
P P
PP
P
P P
217P+R
P+R
81
P+R
251
270P+R
190P+R
P+R
195
200P+R
P+R
100
369P+R
P+R
216
108P+R
302P+R
300P+R
250P+R
Manchester is served by four stations with the busiest, Manchester Piccadilly, providing frequent and fast services to London Euston in just over two hours. The second business station by passenger numbers is Oxford Road which is approximately 100m from the property. HS2 will arrive into Manchester Piccadilly Station with a planned completion date of 2033.
TRANSPORT
NEW YORK8 hours
LIVERPOOL55 kms (44 miles)
47 minutes
BIRMINGHAM128 kms (80 miles)1 hour 26 minutes
LONDON290 kms (181 miles)
2 hours 8 minutes
GLASGOW348 kms (214 miles)3 hours 15 minutes EDINBURGH
336 kms (210 miles)3 hours 16 minutes
LEEDS64 kms (40 miles)
55 minutes
MADRID3 hours
PARIS1.5 hours
SINGAPORE13 hours
GENEVA2 hours
DUBAI7 hours
FRANKFURT1.5 hours
AMSTERDAM1.5 hours
STOCKHOLM2.5 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 the capacity across the system. The Deansgate Castlefield station is located immediately adjacent to First Street. This is one of the few stations where travellers can get to all destinations on the network. It is also one of only three stations which are linked to national rail stations.
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE07
SITU
ATIO
N -
FIR
ST S
TREE
T First Street opened in April 2015 with the first phase of the 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
350,000 sq ft of Grade A Offices with a further phase due to start on site
Construction is also about to begin on a further 624 residential units on the south element of the site.
The development has already transformed the wider area by providing high quality amenities, exciting activities and a new sense of place which has attracted a number of new occupiers into the city including Ford, Autotrader, Gazprom and Jacobs, alongside Amaze, Odeon and WSP.
SAINSBURYS
NUMBER ONE FIRST STREET
Q PARK
HACIENDAAPARTMANTS
INSIDE HOTEL
HOME
EVERSHEDS
VITA STUDENT
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE08
Within the development is a new £25million arts and cultural centre incorporating 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.
FIRS
T ST
REET
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE09
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.
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE10
First Street links the established leisure pitches of Oxford Road and Deansgate Locks.
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 1-3A 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 5-9A multi-let row of ground floor units within the multi-storey car park
DES
CRI
PTIO
N
MANCHESTER
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE11
TRAVIS STREET
ADAIR S
TREET
RIVER IR
WELL
CENTRALLIBRARY
TOWNHALL
MANCHESTER ARNDALESHOPPING CENTRE
CORNEXCHANGE
THE PRINTWORKS
MANCHESTERVICTORIASTATION
MANCHESTERPICCCADILLY
STATION
MANCHESTERCENTRAL CONVENTION
COMPLEX
MANCHESTERARENA
THE LOWRY
MANCHESTERMETROPOLITAN
UNIVERSITY
THE UNIVERSITY OF MANCHESTER
MANCHESTER ROYAL INFIRMARY HOSPITAL
A57 DAW
SON STREET
THE BRIDGEWATER HALL
St Peter’sSquare
AlbertSquare
HardmanSquare
Great NorthernSquare
PiccadillyGardens
Market Street
MANCHESTEROXFORD ROAD
DEANSGATE
SALFORDCENTRAL
Shudehall
EXCHANGESQUARE
CORNBROOK
Deansgate-Castlefield
CHARLOTTE STREET
COOPER S
TREET
FOU
NTA
IN S
TREE
T
HIG
H S
TRE
ET
QUAY STREET A34 PETER STREET A34 OXFORD STREET A34
D
EAN
SGAT
E A
56
DEA
NSG
ATE
A56
CHAPEL STREET
BLACKFRIARS STREET
NEW BAILEY STREET BRIDGE STREET
PRINCESS STREET PRINCESS STREET
LO
WER M
OSELEY S
TREET
WHITWORTH STREET B6469
AYTOUN STREET
DU
C IE
ST
REET
PORTLAND STREET A
5103
PORTLAND S
TREET A5103
NEW
TON S
TREET
SACKVILLE STREET
HANOVER STREET
S
HUDEHILL
ROCHDALE ROAD
PICCADILLY A6
FAIRFIELD STREET B6469 FAIRFIELD STREET B6469
STORE STREET
AYTOUN STREET A6
CHORLTON STREET
NEW YORK STREET
THOMAS STREET HILTON STREET STEVENSON SQUARE
CHURCH STREET DALE STREET
LEVER S
TREET
LEVER S
TREET
ALBE
RT S
QU
ARE
LIVERPOOL ROAD
ST. M
ARY’
S PARSONAGE
TIB LANE BOOTH STREET NICHOLAS STREET
PORT STREET
MILLER STREET A665 SWAN STREET A665 GREAT ANCOATS STREET A665
A664 ADDINGTON STREET A665
TRIN
ITY WAY
N
EW BRIDGE STREET
OLDHAM ROAD A62
OLDHAM
STR
EET
O
LDHAM
STR
EET
CORP
ORA
TION
STR
EET
MOSLEY S
TREET
PICCADILLYGARDENS
STREET
DALE STREET
KING STREET YORK
MARKET STREET
ST MARY’S GATE
CR
OSS
STR
EET
COR
PORA
TION
STR
EET
PICCADILLY
GREAT ANCOATS STREET A665
FAIRFIELD STREET B6469
OXFORD STREET A34
OLD MILL STREET
POLLARD STREET
MO
UN
T STR
EE
T
A6 CHAPEL STREET
A56 CHESTER ROAD
BRIDGEW
ATER VIA
DUCT
A57 (M) MANCUNIAN WAY
CHO
RLTO
N R
OAD
WHITWORTH STREET B6469
A
LBIO
N S
TREE
T
W
ATER ST
REET
A6042
TRI
NITY
WAY
A6
042
LIVERPOOL ROAD
TRIN
ITY
WAY
A60
42
NEW QUAY STREET
IRWELL STREET
PRINESS STREET A34
BLACKFRIARS ROAD
BLACKFRIARS ROAD
KING STREET
TARIFF STREET
A6 CHAPEL STREET
A6 BROAD STREET
CROSS LAN
E
AD
ELP
HI S
TRE
ET
ADELPHI STREET
MIDDLEWOOD STREET
A57 REGENT ROAD
SALFORDMANCHESTER
BRIDGEWATER WAY
MED
LOCK
STR
EET
CASTLEFIELD
A57 (M) M
ANCUNIAN WAY FIRST STREET
CIRCLE SQUARE
SPINNINGFIELDS
ENTERPRISE CITY
DEANSGATE SQUARE
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE12
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:
UnitNo
Tenant Name Total Area (ft²)
Lease Start
Expiry Date
Next Review
Breaks Headline rent pa
Comments Deposit
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
2 Sainsburys Supermarkets Ltd 4,008 27/4/2015 26/4/2030 27/4/2020 £91,000.00 £23.00 RPI linked rent review capped 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
4 Pizza Express (Restaurants) Ltd 3,211 3/8/2015 2/8/2040 8/3/2020 03/08/2030 £84,000.00 £26.91 12 month notice on break 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
6 Wood Restaurants Ltd 3,552 21/6/2017 20/6/2032 21/06/2022 21/6/2027 £100,000.00 £27.99 Stepped rents £75,000 on 21.6.19 £100,000 on 21.6.20 6 months notice on break
£25,000+VAT
7b Queensway Coffee Houses Ltd t/a Starbucks 1,597 18/4/2016 17/4/2026 18/04/2021 £43,260.00 £28.88 21,630+VAT
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
9 Vertigo Foods Ltd 1,127 21/6/2019 20/6/2029 21/6/2024 21/6/2022 & 21/6/2026 £42,500 £37.71
Unit re-let after 2 month void at rent 21% higher than previous rent6 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.
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE13
The property is held under three separate long lease hold interests at a peppercorn rent. More information is available upon request.
TEN
URE
CO
VEN
ANT
INFO
RMAT
ION 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.
Tenant % of income D&B Creditsafe Turnover Pre-Tax Net Assets
Unit 1- Junkyard Golf Club (Manchester) Limited 16% C4 44 - - £131,529
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% N4 13 - - -£250,513
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 £3,167,967
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.
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE14
Manchester is one of the UK’s most vibrant cities and is 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
RETA
IL &
LEI
SURE
MA
RKET
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE15
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).
MANCHESTER
PRIME LONG INCOME MULTI-LET RETAIL & LEISURE INVESTMENT FOR SALE16
MANCHESTER M15
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%.
JAMES PORTEOUS
James.porteous@eu.jll.com0161 238 7408
ANDREW HILBOURNE
Andrew.hilbourne@eu.jll.com0161 238 6284
FURTHER INFORMATION
© 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, 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.
JEREMY HODGSON Jeremy.hodgson@allsop.co.uk0207 543 6709
JAMES SALMON James.salmon@allsop.co.uk0207 543 6880
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