landmark office investment...
TRANSCRIPT
Landmark Office Investment
LIVERPOOL
Albert Dock, Liverpool, L3 4AE
• LiverpoolistheUK’ssixthlargestcity
• AtlanticPavilionisaLandmarkoffice
building forming part of the Albert
Dock on Liverpool’s waterfront which
is a UNESCOWorldHeritageSite
attracting over 5.8 million visitors
each year
• The building provides 81,414sqft of
high quality office accommodation
together with 70 car parking spaces
• Leased to Littlewoods Limited for a
term of 30 years from 8 April 1993
thus having 6yearsand5months
unexpired lease term
• Current passing rent of £900,000
pa equating to £11.24psf on the
office accommodation
• Future potential for high quality
residential or hotel development
• Offers sought in excess of £12.05m
subject to contract and exclusive of VAT
which shows a net initial yield of 7%
after purchaser’s costs at 6.71%
I N V E S T M E N T S U M M A R Y
LIVERPOOLDUBLIN
ISLE OF MAN
MANCHESTER
NOTTINGHAM
BIRMINGHAM
LEEDS
BELFAST
M62
M62
M56
M61
M6
M1
Liverpool is the principal Atlantic Port for the
North of England situated 217 miles (349 km)
northwest of London, 98 miles (157 km) northwest
of Birmingham and 34 miles (54 km) west
of Manchester.
The city benefits from excellent transport
communications. The M62 joins Leeds, Manchester
and Liverpool and the wider motorway network
and provides direct access to the city centre via
the A5047.
The M57 and M58 provide links to North Liverpool
and whilst the Wirral Peninsula is directly accessed
via the Kingsway (Wallasey) and Queensway
(Birkenhead) Tunnels.
Liverpool John Lennon Airport is situated 6 miles
(10 km) south east of the city centre and is one of
Europe’s fastest growing airports with over
4.3 million passengers in 2015.
The city’s main line train station is Liverpool Lime
Street which provides direct access to destinations
including Manchester, Birmingham and London
Euston which has a journey time of approximately
2 hours. In addition, the Merseyrail loop system
runs under the city connecting Lime Street,
Moorfields, Central and James Street stations and
links the city with the Wirral Peninsula, Chester and
North Wales.
Mersey Ferries operate a daily service between the
Pier Head and the Wirral while P&O and Norfolk
Line Irish Sea offer daily services to Dublin, Belfast
and Douglas.
L O C A T I O N
MO
OREFIELDS
ST JOHNSCENTRE
LEEDSST
NEWQUAY
THESTRA
ND
HANOVERST
DUKEST
DUKEST
BERRYST
GREATGEORGEST
UPPERDUKESST
CANNINGST FALKNE
RSQ
RANELAG
HST
RENSHAWST
MYRTLEST
MYRTLEST
BROWNLOWHILL
BROW
NLOWHILL
MOUNTPLEASANT
PADDING
TON
MOUNTPLEASANT
OXFORDST
RODNEYST
RUSSELLST
CLARENCEST
MOSSST
SHAWST
BRUNSWICKRD
LONDON
RD
LOWHILL
SEYMOURST
STANNESST
N
ORTONST
GROVEST
HOPEST
PARKLANE
ARADISEST
P
WILLIAMBROWNST LONDONRD PEMBROKERDWESTDERBYST
HUNTERST NEWISLIN
GTON ERSKINEST
CHAPELST
TITHEBARNST
CROSSHALLS
T
B5182
PALLM
ALL
WATERST
DALEST
JAMESST LORDST
NORTH
JOHNST
CANNINGPL
CASTLEST
V
ICTORIAST
HATTONGRD
LIMEST
ISLINGTON
CROSSH
ALLST
BYROMST
STJOH
N’S LN
ST G
EO
RG
E’S P
L.
STANLEYST
WHITECHAPEL
WOODST
BOLDST
SEELST SEELST
FLEETST
SLATERST
CONCERTST
COLQUITTST
LORDST CHURCHST
WILLIAMSONST
PARKERST
ELLIOTST
MATHEWST
OLDHALLST
A665
MANN
ISLAND
GEORGESPIERHEAD
COPPERASHILL
ASHTONST
NEWTONST
MULLBERRYST
NELSONST
FALKNERST
LORDNELSONST
COOKST
RUMFORD
DOVERST
BROWNLOWST
PAISLEYST
BATHST
BIXETH
ST
SALTHOUSEQUAY
CORNHILL
BLUNDELLST
CANTERBURYST
SOHOST
ST
AFFORDST
FALKNERST
KNIGHTST
KENT
UPPERFREDERICKST
ARGYLLEST
FORRESTST YORKST
HENRYST
SOUTHJOHNST
SKELHORNEST
ALBERTDOCK
ECHOARENA
CONVENTIONCENTRE
HOLIDAYINN
PREMIERINN
HARTLE
YQUAY
OLDLEEDSST
EASTST
LIVERPOOLMUSEUM
LIVERPOOLJOHNMOORESUNIVERSITY
MARRIOT
ROYALLIVERBUILDING
CUNARDBUILDING
THEPORTOFLIVERPOOLBUILDING
MUSEUMOFLIVERPOOL
MERSEYFERRYPORT
GOWERST
WAPPINGST
JAMESST
LIMEST
CENTRAL
MOORFIELDS
Atlantic Pavilion is strategically located in the heart
of Liverpool City Centre. It is easily accessible from all
major transport links, being located just off the Strand
(A5036), Liverpool City Centre’s principal arterial route,
and within a short walk of James Street Station.
Liverpool City Centre is quite compact in nature, and
the major retail, office, cultural, leisure and university
areas are all within an easy walk of the subject
property. All aspects of the City Centre have been
greatly enhanced by new developments over the last 10
years, most notably Liverpool One, Grosvenor’s award
winning 1.65 million sqft mixed use development which
is only 5 minutes’ walk away across the Strand. Further
high quality development has taken place in the
office, leisure and university areas with more planned
including a particular focus on residential as the City
Centre becomes an increasingly popular place to live
and work.
At the Kings Dock to the south of Atlantic Pavilion, the
development of the Echo Arena and BT Convention
Centre together with leisure facilities including
Staybridge Suites, Jury’s Inn and Pullman hotels has
transformed the local area. Events as diverse as
the MTV Europe Music Awards, Labour and Liberal
Democrat annual conferences and BBC Sports
Personality of the Year have been hosted at the arena
and convention centre.
Peel’s Liverpool Waters scheme, to the north is one of
the most ambitious regeneration projects in the UK. It
will comprise over 1.7 million sq ft of mixed use space,
and will regenerate a 60 hectare historic dockland site
to create a world class, mixed-use waterfront quarter.
L O C A L A R E A
20 MINS WALK
CENTRAL BUSINESS
DISTRICT
THETHREE
GRACES
UNIVERSITY QUARTER
STGEORGE’S
QUARTER
ROPEWALKS
WATERFRONT
CHINATOWN
LIVERPOOLONE
CAVERN
QUARTER
10 MINS WALK
5MINSWALK
Liverpool with a population of 466,000 is at the centre of
the UK’s second largest regional economy with access to 6M
customers, an economy worth more than £141bn and 266,000
businesses. The city is the second largest wealth management
centre in the UK and is home to a number of multi-nationals
including Barclays Wealth, Jaguar Land Rover, Maersk,
Novartis and Sony.
The city has four universities with over 70,000 students. The
world leading School of Tropical Medicine and School of
Life Sciences have helped to establish the city as a leading
centre of the life sciences industry with substantial investment
from multi-nationals such as Novartis, Eli Lilley, Astra Zeneca,
Actavis and Baxter Health Care injecting £1.7bn per annum
into the city economy. The Port of Liverpool handles 45% of all
trade with North America. The city region has 34,000 people
employed in the maritime, airport and related sectors with 5
of the world’s top 6 shipping/logistics companies having a
base in the city.
The Liverpool city region welcomes nearly 60M visitors
per annum with the tourist industry estimated to be worth
£1.3 billion to the city’s economy each year. Last year 2.9M
bedrooms were occupied with the Echo Arena, BT Convention
Centre as well as Liverpool and Everton Football Clubs being
major drivers of the visitor economy. The city is also home
to the largest collection of national museums and galleries
outside of London.
L I V E R P O O L E C O N O M I C O V E R V I E W
Liverpool has seen extensive regional and inward investment
in recent years delivering and improving a number of
significant schemes throughout the city.
LIVERPOOL ONE
Liverpool One is the UK’s largest open air shopping centre
and provides a 1.65 million sq ft mixed use development
completed in 2008. Anchored by John Lewis and Debenhams
department stores and providing a 14 screen Odeon cinema
and 53 restaurants and bars, Liverpool One is the 5th largest
shopping centre in the UK. Liverpool One is connected to the
Albert Dock by a pedestrian crossing adjacent to the
Hilton hotel.
PIER HEAD
Located to the north of the Albert Dock, The Pier Head
is home to the globally recognised Three Graces – Royal
Liver Building, Cunard Building and Port of Liverpool
Building – each having undergone significant refurbishment
programmes to provide high quality office accommodation
for both the private and public sectors. The recent additions
to the Pier Head of the architecturally striking Museum of
Liverpool and Mann Island, a mixed use commercial and
residential development, have breathed a new lease of life to
the area.
CRUISE LINER TERMINAL
Located to the north of the “Three Graces”, Liverpool Cruise
Terminal opened in 2007, and renewed the city’s links with
the great ocean liners of the world. Cruise Critic awarded
Liverpool the ‘Best UK Port of Call’ for two consecutive seasons
and in 2015 Seatrade crowned Liverpool ‘Destination of the
Year’. In 2015, 54 ships docked at the terminal carrying 83,000
passengers and plans for a new £50M facility are being
prepared by the city council.
LIVERPOOL WATERS
Located to the northern fringe of the city, Peel Holding’s
Liverpool Waters development will see the regeneration of 60
hectares of historic docklands with a vision to bring forward
a 9 million sq ft masterplan to include 10,000 residential units
and in excess of 1 million sq ft of commercial space. Peel
Ports have invested £300M in a new river terminal capable
of welcoming the world’s biggest container ships which is
expected to double the port’s capacity to 1.5m TEU’s
every year.
KINGS DOCK
Located to the south of Albert Dock, Kings Dock is a modern
development housing the Echo Arena and BT Convention
Centre and Exhibition Centre, together with restaurant and
hotel operators such as Staybridge Suites, Jury’s Inn and the
recently completed Pullman.
T H E R E N N A I S A N C E O F L I V E R P O O L
Atlantic Pavilion forms part of the Albert
Dock and is situated in the south east corner
at the junction of Salthouse Quay and
Gower Street.
The Albert Dock is at the heart of Liverpool’s
renowned waterfront, which in the 18th, 19th
and early 20th centuries developed into one
of the world’s major trading centers. The
waterfront is now a Unesco World Heritage
Site and includes the Pier Head, with its
three principal waterfront buildings - the
Royal Liver Building, the Cunard Building,
and Port of Liverpool Building. Other
major attractions on the waterfront include
Liverpool Museum, the Cruise Terminal,
Echo Arena and BT Convention Centre.
The Albert Dock sits a short distance from
the thriving business and retail district is
home to the Tate Art Gallery, Maritime
Museum, International Slavery Museum and
The Beatles Story as well as an eclectic mix
of bars and restaurants. It is the most visited
free tourist attraction outside of London
and attracts 5.8 million visitors each year to
events such as the Mersey River Festival, Red
Bull Harbour Reach Wakeboarding Event,
Liverpool Triathlon and the International
Beetles Week.
WA T E R F R O N T
ECHOARENA
ALBERT DOCK
HOLIDAYINN
HILTONHOTEL
TATELIVERPOOL
MARITIME MUSEUM
LIVERPOOLMUSEUM
MANN ISLAND
LIVERPOOL1
PREMIERINN
THREEGRACES
The property comprises an original Grade
I Listed, mid 1800’s dock warehouse which
was regenerated in the 1980’s as offices. It
now comprises a high quality 81,414 sq ft
(7,563 sq m) office building arranged over
basement and five upper floors.
The property is of traditional construction
with brick elevations and cast iron columns
beneath and strsses steel roof with steel
framed single glazed windows. The offices
are accessed from a ground floor reception
which benefits from two passenger lifts and
a goods lift serving all floors. The office
areas typically benefit from comfort cooling
and raised floors. There are 21 designated
car parking spaces immediately adjacent
to the property plus an additional 49 car
parking spaces included within the lease
situated within the Kings Waterfront
car park.
At ground floor there are three leisure
units occupied by Miller and Carter, Spice
Lounge and Revolution which form part
of the Albert Dock scheme and are not
included within the interest being sold.
D E S C R I P T I O N
A C C O M M O D A T I O N
The property has the following net internal floor areas:-
Use Sq Ft Sq M
Basement Storage 9,812 912
Ground Reception 1,998 186
Mezzanine Offices 2,193 204
First Offices 15,403 1,431
Second Offices 17,006 1,580
Third Offices 17,150 1,593
Fourth Offices 17,852 1,658
TotalNetInternalArea 81,414 7,564
TYPICAL FLOOR PLATE
The entire property is let to Littlewoods Limited for a term
of 30 years from 8th April 1993 at a current passing rent of
£900,000 pa subject to 5 yearly upward only rent reviews. The
tenant has the right to renew the lease for a further 30 years
at the expiration of the term. The tenant has the right to use
the 21 car parking spaces located to the front of the property
along with a further 49 spaces located within the Kings
Waterfront car park.
We analyse the current passing rent of £900,000 pa to a
modest £11.24 psf applying £5 psf to the basement, half rent
to the ground floor reception area and mezzanine level and
£1,000 per car parking space.
Littlewoods are not in occupation of the entire property, but
occupy parts of the second, third and fourth floor through their
subsidiary Yodel Delivery network. The remainder of the third
floor is sub-let to GB Group Plc.
Further information is available upon request.
Littlewoods was the original catalogue shopping company
founded in Liverpool in 1923 by John Moores. In 2002 the
shopping and catalogue business was sold to the Barclay
Brothers and is now one of the UK’s principal online
retailing businesses.
Littlewoods Ltd is an investment holding company providing
management services to various companies within the Shop
Direct Limited group.
Littlewoods Ltd has a Dunn & Bradstreet rating of 5A 1 and has
reported the adjacent financial results:
30June2015 30June2014
Pre-Tax Profit £5,417,000 £1,491,000
Tangible Net Worth
£249,608,000 £243,831,000
Share Capital £255,312,000 £255,312,000
T E N A N C Y
C O V E N A N T I N F O R M A T I O N
• Prominent situation at the heart of
the Albert Dock offering unique office
accommodation
• Potential to surrender or re-gear
occupational lease
• Low rent of £11.24 psf, providing strong
growth prospects
• The owner of Atlantic Pavilion has an 11%
stake in the Albert Dock management
company; Gower Street Estate and
entitlement to a seat on the board
• Atlantic Pavilion would lend itself well to
conversion to residential, hotel or student
accommodation, subject to planning.
• Indicative schemes showing 59
apartments and 118 hotel bedrooms have
been prepared by our client’s architect.
I N V E S T M E N T P U R C H A S E R A T I O N A L E
INDICATIVE SCHEMES
Residential – First Floor
Hotel – First Floor
The property is held by way of a 999 year long leasehold
interest from 1st October 1985 from the freeholder Gower
Street Estates Limited. The main role of Gower Street Estates
Limited is to administer the maintenance, insurance and
security of the common parts of the estate. The owner of
Atlantic Pavilion holds an 11% shareholding in Gower Street
Estates Limited and entitlement to a seat on the board.
Further information is available upon request.
We understand the property is registered for VAT and
therefore we anticipate treating the sale as a transfer of a
going concern (TOGC).
An EPC is not required as this property is Listed.
Offers sought in excess of£12,050,000 (Twelve Million and
Fifty Thousand Pounds), subject to contract and exclusive
of VAT.
A purchase at this level would show a net initial yield of 7%
after purchaser costs at 6.71%.
For further information or an appointment to view
please do not hesitate to contact:
T E N U R E
VA T
E P C C O N T A C T S
I N V E S T M E N T P R O P O S A L
MasonOwen
Gladstone House
11 Union Court
Liverpool L2 4UQ
Tel: 0151 242 3000
www.masonowen.com
Or via our joint agents:
Lewis&Partners
15/19 Cavendish Place
London
W1G 0QE
T: 020 7580 4333
F: 020 7580 5111
www.lewisandpartners.com
JamieMoffatt
T: 0151 242 3042
M: 07798 576 799
AndrewScott
T: 0151 242 3043
M: 07786 171 406
StephenGevertz
T: 020 7580 4333
StevenLewis
T: 020 7580 4333
SubjecttoContract&ExclusiveofVAT
Misrepresentation Act: All Agents and for the vendors or lessors of this property whose agents they
are, give notice that (i) these particulars are produced in good faith, are set out as a general guide
only and do not constitute any part of an offer or contract. They are believed to be correct but any
intending purchasers or tenants should not rely on them as statements or representations of fact but
must satisfy themselves as to the correctness of each of them. (ii) no person in the employment of all
agents has any authority to make or give any representation or warranty in relation to this property.
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