investment opportunity high yielding office black & decker. meadowhall sheffield business park...

722 Prince of Wales RoadSHEFFIELD, S9 4EU

High Yielding OfficeInvestment Opportunity


INVESTMENT SUMMARY

• High Yielding multi let office investment opportunity with 100% of the income secured to undoubted covenants.

• 83,584 sq ft of substantially refurbished high quality office accommodation with a USP of the largest open plan floor plates in the city.

• A large total site area of 5.3 acres with surfaced parking for 322 cars (1:260 sq ft) and additional land for either development or extra car parking.

• The property is situated immediatelyoff Sheffield Parkway and as such provides excellent access to J33 of the M1 and Sheffield City Centre.

• The property has a current rental income of £879,562 per annum with an ERV of £916,553 per annum.

• Offers are invited in the region of £6,500,000 (six million five hundred thousand pounds), subject to contract and VAT. A purchase at this level represents a Net Initial Yield of 12.69% (assuming purchasers’ costs of 6.63%) and a low capital value of £77.77psf.

• Weighted average unexpired term certain of 2.0 years.

722 Prince of Wales Road is a largemulti-tenanted office situated closeto the ring road, motorway andSheffield City Centre.

LOCATIONSheffield is England’s fourth largest city and thecommercial, administrative and retail centre ofSouth Yorkshire, with an urban area populationof approximately 640,000. The city is located 150 miles (240 km) north of London, 33 miles(53 km) south of Leeds and 38 miles (61 km)east of Manchester and benefits from itscentral location within the UK.

The city enjoys excellent access to thenational motorway network, with Junctions 31to 34 of the M1 on the eastern fringe of thecity, approximately 4 miles (6.5 km) from thecity centre. The M1 provides direct access tothe north (Leeds, Barnsley and Wakefield) andsouth (Nottingham, Milton Keynes andLondon). In addition, the M18, accessed atJunction 32 of the M1 provides direct accessto the Humberside Ports. The A57 and M67provide access to Manchester, approximately38 miles (61 km) to the west.

Sheffield Mainline Station provides directservices to the following UK cities withapproximate fastest journey times as below:

London (St Pancras) 127 minutes

Birmingham 65 minutes

Manchester 50 minutes

Nottingham 45 minutes

Leeds 40 minutes

Manchester, East Midlands, Leeds-BradfordInternational and Doncaster Robin HoodAirports are located 47 miles (75 km), 53 miles (85 km), 45 miles (72 km) and 27 miles (44 km) respectively and are all within 1 hours drive of the city. All provide a range of national, European and international services.


Photo: Andy Brown

Sheffield is England’s fourthlargest city and the commercial,administrative and retail centre of South Yorkshire

WAVERLEY

TINSLEY

HandsworthCommunity

Park

Brinsworth

Tinsley Park Golf Course

CITYCENTRE

CARBROOKSheffield Hallam

University Sports Park

GREENLAND

Prin

ce o

f Wal

es R

d

Sheffield Parkway

7

A630

Shef

fie

ld Parkway

Sheffield Parkway

A630

A630

SITUATIONPrince of Wales Road(A6102) is part of Sheffield’sOuter Ring Road whichlinks the North Easternboundary of the city atCarbrook, round the Easternedge, through to the South Western Boundaryat Meadowhead.

722 is situated in a highly accessible location,immediately off SheffieldParkway, which is the mainarterial route linkingSheffield City Centre andJ33 of the M1, as well ashaving direct access to J34of the M1.

Close to the property are Meadowhall, ValleyCentertainment, MeadowhallRetail Park and TinsleyGolf Course, all of whichprovide excellent staffamenities, entertainmentand transport hubs.

Also close to the site is the highly successfulAdvanced ManufacturingInnovation District (AMID)which comprised theAdvanced ManufacturingPark (AMP) and SheffieldBusiness Park (SBP) whichis home to occupierssuch as Boeing, Rolls-Royce,Sheffield University, TheInstitute of MechanicalEngineers, Nikken andStanley Black & Decker.

MEADOWHALL

SHEFFIELDBUSINESS PARK

SHEFFIELDARENA

ADVANCEDMANUFACTURING

PARK

CENTERTAINMENT

ENGLISHINSTITUTE

OF SPORT (EIS)

NEW IKEA STORE(UNDER CONSTRUCTION)

SHEFFIELDPARKWAY (A630)


MEADOWHALLRETAIL PARK

J34

M1

J33

ATTERCLIFFECOMMON (A6178)

UNIVERSITYOF SHEFFIELD

BOEING

ROLLSROYCE

722

M&S Plc

OUTER RING ROAD

McLAREN


TYPICAL FLOOR PLATE

REAR SECTION

TOW

ER

SE

CTIO

N

DESCRIPTION722 is a high quality, multi-occupied office propertyoffering the largest floor plates in the city. The propertyunderwent substantial refurbishment in 2005 whichincluded remodelling works to create the large openplan floors which many occupiers find attractive. Thespecification includes:

• Full raised access floors• Suspended ceilings• Excellent floor to ceiling height• Air conditioning• Large reception with concierge and café• Shared meeting facilities• Substantial car parking area

DEVELOPMENT SITEIncluded within the ownership is the roadsidedevelopment site, comprising approximately 1 acre,directly fronting Prince of Wales Road. The site hadoutline planning consent for A3 and drive through use.We are of the opinion that this plot has an existing usevalue of £350,000 with potential to significantly increasethis on planning. Plans have also been produced toshow that an additional 133 parking spaces can beaccommodated on this site.

INCOME ANALYSISThe majority of the income is underpinned by NHS Property Services Limited. They have been in occupationof the building for many years now, previously as the Primary Care Trust, but now as the ClinicalCommissioning Group, charged with the buying and contracting of the regions healthcare services.


TENANCY SCHEDULEFloor Tenant Sq Ft £ / Sq Ft Rent ERV psf ERV Lease Lease Break Notes

Start EndLower ground floor, VACANT 2,968 £10.00 £29,680Courtyard SuiteGround floor café BLACKMHOR 596 £5.00 £2,980 13/10/2010 12/10/2015 Informal arrangement. Overage rent

LIMITED (café) being 10% of any gross receipts over £30,000 per quarter. Tenant holding over. Excluded from L&T 1954 Act.

Ground floor VACANT 336 £12.00 £4,000 Available to rent by Tenants.meeting roomGround and NHS PROPERTY 38,425 £10.95 £420,754 £11.00 £422,675 28/03/2013 27/03/2024 27/03/2020 Review @ RPI (all prices) at year 7.First floor SERVICES LTD Tenant break at end of 7th year

on 12 months prior notice. The lease includes 121 parking spaces.

First floor front NHS PROPERTY 3,806 £10.00 £38,060 £10.00 £38,060 25/05/2017 24/05/2022 30/11/2019SERVICES LTD

Second floor front NEWCASTLE 16,541 £12.75 £210,898 £10.77 £178,192 05/08/2008 04/08/2018 The ERV is based on £11.00psf for and part rear COLLEGE 2nd floor rear and £10.00psf for

2nd floor front. The lease includes 48 parking spaces.

Part second VACANT 7,346 £11.00 £80,806 floor rearThird floor front DANIELI DAVY 3,991 £14.40 £57,470 £10.00 £39,910 13/02/2008 12/02/2018 Have vacated.

DISTINGTON LTDFourth/fifth/sixth DANIELI DAVY 9,575 £14.40 £137,880 £10.00 £95,750 13/02/2008 12/02/2018 Have vacated.floors front DISTINGTON LTD47 additional NHS PROPERTY £10,000 £20,000 28/03/2013 27/03/2024 27/03/2020 Review @ RPI (all prices) at year 7. parking spaces SERVICES LTD Tenant break at the end of 7th year

on 12 months' notice.10 additional NHS PROPERTY £4,500 £4,500 19/05/2017 18/05/2022 30/11/2019 LL Can terminate on 2 monthsparking spaces SERVICES LTD notice.

TOTALS 83,584 £879,562 £916,553

INCOME

NHS - 54%

Newcastle College - 24%

DDD - 22%

These particulars do not constitute part of an offer or contract. All descriptions, dimensions, reference to condition and necessary permission for use and occupation and other details contained herein are for general guidance only and prospective purchasers or tenants should not rely on them as statements or representationsof fact and must satisfy themselves as to their accuracy. Neither Commercial Property Partners or Savills, nor its employees or representatives have any authority to make or give any representation or warranty or enter into any contract in relation to the property. Rents quoted in these particulars may be subject to VAT inaddition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function and prospective tenants/purchasers should satisfy themselves as to the fitness ofsuch equipment for their requirements. Prices/rents quoted in these particulars may be subject to VAT in addition. a) These particulars were prepared from preliminary plans and specifications before the completion of the properties and are intended only as a guide. They may have been changed during construction and finalfinishes could vary. Prospective purchasers should not rely on this information but must get their solicitor to check the plans and specifications attached to their contract. b) We have not made any investigations into the existence or otherwise of any issues concerning pollution of land, air or water contamination and the purchaseris responsible for making his own enquiries in this regard. Designed and produced by www.thedesignexchange.co.uk Tel: 01943 604500. June 2017.

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TENUREFreehold.

VATThe property has been electedfor VAT. The sale will be treatedas a Transfer of a GoingConcern (TOGC).

DATA ROOMData room access availableupon request.

EPCEPC’s are available uponrequest.

PROPOSALOffers are invited in the region of £6,500,000 (six million fivehundred thousand pounds), subject to contract and VAT.

A purchase at this level represents the following yield profile,allowing £350,000 for the development site:

Net Initial Yield - 12.69%Reversionary Yield - 13.97% (assuming the development site is sold)

This assumes purchaser's costs of 6.63% reflecting a lowcapital value of £77.77 psf and £73.50 psf assuming thedevelopment site is sold.

CONTACT

Rob Darrington

DDI: +44 (0) 114 270 9163E: [email protected]

Roger Haworth


Simon Lister


Mark Wilson


SITE PLANNot to scale.

AdditionalDevelopmentLand

The Property

N

investment opportunity high yielding office black & decker. meadowhall sheffield business park...

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