prime mixed-use investment · unit 4 intro fashion ground floor 606 56.3 501 06/03/18 05/03/28...

PRIME MIXED-USE

INVESTMENTBARTON ARCADE DEANSGATE, MANCHESTER

■ Freehold interest in Manchester city centre landmark

■ c.56,000 sq ft mixed use Victorian arcade with its prime frontage onto Deansgate

■ 16 retail/restaurant units, 19,000 sq ft of creative offices and a penthouse flat

■ 21 different tenants generating a diversified income stream of c. £1.1m per annum

■ Independent focused retail and leisure destination with high footfall

■ Low passing rents at £30 - £140 Zone A (retail) and £7.50 - £15 per sq ft (offices)

■ Manchester is the largest economic area outside London

■ Our clients are seeking offers in excess of £17m (seventeen million pounds), subject to contract and exclusive of VAT for the benefit of the freehold interest, which reflects a net initial yield of 6% and a reversionary yield of 6.55% on the basis of standard purchasers costs.

■ The asset is held in a Jersey Property Unit Trust (JPUT).

Manchester is one of Europe’s most dynamic cities.

Investment Summary

Exchange Square

Royal Exchange

Deansgate

King StreetCross Street

BartonArcadeBartonArcadeCorn Exchange

Market Street

Barton Arcade is situated within Manchester’s prime retailing central core

Piccadilly GardensPRIME OFFICE CORE

Manchester Town Hall

St Ann's SquareArndale Shopping Centre

REISS

Spinningfields

URBAN & CIVIC RENAISSANCE

HOTEL REDEVELOPMENT

WATCHESSWITZERLAND

OF

32

50 metres

The RStore

ENTRANCE TO APARTMENTS JONES & ROBINSONS

FJALLRAVEN

TO B

E SE

EN

OPT

ICIA

NS

TO B

E W

ILLI

AM H

UN

T

SYNC

WOK TO WALK

TO BEBARBER BARBER

POT

KETT

LE B

LACK

BAR

& RE

STAU

RANT

TO BE KFC

TenanciesThe property is multi-let to 21 tenants producing a gross passing rent of £1,096,242 pax, as detailed in the tenancy schedule.

The net rent after deduction of service charge shortfalls is currently £1,094,838 pa.

There is a shortfall of £1,404 due to a service charge cap on Unit 11.

TenureFreehold

Sector Area (Sq ft)

Total Rent

% of Total Rent

Deansgate - Retail/Leisure 13,288 £534,149 49%

Arcade - Retail/Leisure 5,560 £211,065 19%

Creative Offices 19,073 £231,228 21%

Basement - Leisure 16,560 £91,000 8%

Penthouse 1,648 £28,800 3%

Total 56,129 £1,096,242 100%

0-2 years 15%

2-5 years 20%

5-10 years 46%

10 years + 19%

Wault Expiry

Retail 39%

Leisure 37%

Creative Offices 21%

% of income by sector

Residential 3%

50 metres

The RStore

ENTRANCE TO APARTMENTS JONES & ROBINSONS

FJALLRAVEN

TO B

E SE

EN

OPT

ICIA

NS

TO B

E W

ILLI

AM H

UN

T

SYNC

WOK TO WALK

TO BEBARBER BARBER

POT

KETT

LE B

LACK

BAR

& RE

STAU

RANT

TO BE KFC

54

Tenancy ScheduleOccupational Details Areas Lease Details Income Occupational

Costs

Description Trading Name User Floor

Area

Total Area (sq ft)

Total Area

(sq m)

Ground Floor Area ITZA

(units)

Lease Start

Expiry Date

Next Review Breaks

Current Rent £

pa

Current Rent

(£ ZA/per sq ft)

Rental Value £

pa

Rental Value (£ ZA/

per sq ft)

Service Charge

Budget 2018 Comments

Deansgate Retail/Leisure

Unit 4 Intro Fashion

Ground Floor 606 56.3

501 06/03/18 05/03/28 £78,000 £134.48 ZA £78,000 £134.48 ZA £7,190.67 New Lease subject to 10 months rent free. In solicitors hands. Outstanding rent free will be topped up at the date of completion. Tenant Keaton Services Ltd.

Basement Sales/Stock

1228 114.08

Total 1833 170.3

Unit 5 U/O

Barber BarberServices


423 £75,000 £135.35 ZA £77,000 £139.33 ZA £14,550.66

10 yr lease stepped rent: Year 1 £75,000. Year 2 £76,000. Year 3 £77,000. Year 4 £78,000. Year 5 £80,000. The tenant is receiving 6 months rent free. Outstanding rent free will be topped up at the date of completion. Tenant Stay True Ltd. Company No. 06034211

First Floor Sales/Stock

1301 120.9

Total 1903 176.8

Unit 6 STA Travel Travel


541 12/03/10 11/03/20 £81,149 £137 ZA £81,149 £137 ZA £9,246.96 Tenant STA Travel Ltd. Company No. 1263330Basement 455 42.3

Total 1183 109.9

Suite 19A and Unit 7 & 8

Lunya Leisure


1,055 24/11/15 23/11/35 24/11/20 £135,000 £35.56 psf £135,000 £35.56 psf £29,671.56 Tenant Lunya Limited. Company No. 06618491First Floor

Sales1979 183.8

Basement 373 34.7

Total 3796 352.6

Unit 9 Wok To Walk Leisure


458 TBC TBC5th Year

£85,000 £36.95 psf £85,000 £36.95 psf £17,978.03

AFL exchanged to Wok to Walk at £85,000/year. 10 year lease with 3 months rent free. Subject to change of use to A3 and listed building consent. The tenant is receiving 3 months rent free. Outstanding rent free will be topped up at the date of completion.

Basement 1567 145.6

Total 2300 213.7

Unit 10 Sync Technology


478 24/10/17 23/10/27 24/10/22 24/10/22 £80,000 £129.00 ZA £80,000 £129.00 ZA £8,916.74

12 months rent free. 3 months break penalty. Outstanding rent free will be topped up at the date of completion. Tenant GBM Digital Technologies Ltd. Company No. 02719704

First Floor Sales

1134 105.4

Basement 565 52.5

Total 2273 211.213,288 1,234.5 £534,149 £536,149

Arcade Retail/Leisure

Unit 1 Jeffery-West Fashion


417 01/05/16 30/04/21 01/05/19 £30,000 £68.50 ZA £30,000 £68.50 ZA £7,258.36Outside L&T Act. Tenant Jeffery-West Retail Ltd. Company No. 03506800

Basement 420 39

Total 929 86.2

Unit 2U/O

William HuntFashion


429 £38,000 £83.15 ZA £38,000 £83.15 ZA £8,598.19To be new 10 year lease to William Hunt at a rent of £38,000 p.a. Rolling 1 month landlord break on current tenant Philip & Jill Black.

Basement 563 52.3

Total 1100 102.2

Unit 3 U/O

Seen OpticiansServices


422 £38,000 £84.00 ZA £38,000 £84.00 ZA £8,812.43Under offer to Seen Opticians at £38,000 pa.Currently occupied by Barber Barber, to be surrendered on completion of unit 3 lease.

Basement 599 55.6

Total 1127 104.7Unit 11 The R Store Fashion Ground Floor 479 44.5 479 20/11/15 19/11/25 20/11/20 20/11/20 £14,400 £30.00 ZA £14,400 £30.00 ZA £3,662.52 Tenant The R Store Ltd. Company No. 9597752

Occupational Details Areas Lease Details Income Occupational Costs

Description Trading Name User Floor Area

Total Area (sq ft)

Total Area

(sq m)

Ground Floor Area ITZA

(units)

Lease Start

Expiry Date

Next Review Breaks Current

Rent £ pa

Current Rent (£ ZA/per sq ft)

Rental Value £ pa

Rental Value (£ ZA/per sq ft)

Service Charge

Budget 2018 Comments

Arcade Retail/Leisure

Unit 12 Pot Kettle Black Leisure Ground Floor 371 34.5 371 06/03/18 19/08/24 £20,000 £53.91 ZA £21,000 £56.60 ZA £2,836.73

Year 2 £20,000/year. Year 3 £21,000/year. Year 4 onwards £22,000/year. Tenant received 12 months rent free. Outstanding rent free will be topped up at the date of completion. Tenant Pot Kettle Black Coffee Ltd. Company No. 08869091

Unit 13 Pot Kettle Black Leisure Ground Floor 347 32.2 304 01/05/16 19/08/24 £18,500 £60.86 ZA £18,500 £60.86 ZA £2,653.22Tenant Pot Kettle Black Coffee Ltd. Company No. 08869091

Unit 14 Pot Kettle Black Leisure Ground Floor 1207 112.1 1059 20/08/14 19/08/24 20/08/19 £52,165 £49.26 ZA £52,165 £49.26 ZA £9,228.93

RR - fixed uplift to £52,165 p.a in 2019 to be topped up by the vendor. Tenant Pot Kettle Black Coffee Ltd. Company No. 08869091

5,560 516.4 £211,065 £212,065Creative OfficesOffice Suites (various)

The Offices (North West) Ltd

Offices 11,874 1,103.7 - 07/11/14 06/11/21 07/11/19 07/11/19 £135,544 £11.42 psf £178,100 £15.00 psf £90,828.59 T break - 6-12 months notice. Company No. 06949486

Office Suites 28-31a

Six & Flow Ltd Offices 1,241 115.3 - 06/01/17 05/01/22 06/01/20 £17,680 £14.25 psf £18,600 £15.00 psf £9,295.59

Office Suites 32-32a

Crowd UK Ltd Offices 1,209 112.3 - 25/03/16 24/03/21 25/03/19 25/03/19 £18,135 £15.00 psf £18,135 £15.00 psf £9,055.89Outside L&T Act. T break - 3 months notice. Company No. 09829857

Office Suites 49-50 GDP Funding LLP Offices 738 68.6 - 03/08/12 02/08/17 £5,550 £7.52 psf £11,100 £15.00 psf £5,527.92 Holding Over. Company No. 7385360

Office Suites 51-53Michael Hyde & Associates Ltd

Offices 2,597 241.3 - 24/06/07 23/06/17 £35,500 £13.67 psf £39,000 £15.00 psf £19,452.57 Holding Over.

Office Suite 55 2004 Ltd Offices 173 16.1 - 27/11/08 26/05/09 £2,042 £11.80 psf £2,600 £15.00 psf £1,295.84 Holding Over - Inside L&T Act

Office Suites 61 & 63

Mr. Alan Sandford & Mr. Kieran Singh

Offices 502 46.6 - 29/11/06 28/11/11 £6,777 £13.5 psf £7,530 £15.00 psf £3,760.18 Holding Over

Office Suites 69-70 MGS Estates Ltd Offices 739 68.6 - 16/02/10 15/02/15 £10,000 £13.53 psf £11,100 £15.00 psf £5,535.41 Holding Over. Company No. 2287555

19,073 1,771.9 £231,228 £286,165Basement LeisureUnit 15 - Basement

Be At One Leisure Basement 5,182 481.4 11/12/15 10/12/35 11/12/20 10/12/35 £75,000 £14.47 psf £75,000 £14.47 psf £17,243.03Tenant Be At One Limited. Company No. 04092709

Unit 16 - Basement and Sub Basement

Crowd UK Ltd t/a Brickworks

Events/ Leisure

Sub Basement 11,378 1,057.1 12/02/18 11/02/23 12/02/20 £16,000 £1.40 psf £50,000 £4.39 psf £-

12 months rent free. Tenant to undertake M&E works. Outstanding rent free will be topped up at date of completion. Mutual break clause 12/2/2020

16,560 1,538.5 £91,000 £125,000Penthouse3 bed roof top Apartment

Kingdom Capital Ltd Residential 1,648 153.1 - 26/02/18 25/02/19 £28,800 £30,000 £-

Total 56,129 5,214.5 £1,096,242 £1,189,379 £292,600

76

The current prime rental tone in the ownership is circa £140 per sq ft Zone A applied to the Deansgate frontage which reduces internally to approximately £30 per sq ft Zone A.The passing rents on the internal arcade units are at a substantial discount to the units with Deansgate frontage.

This compares favourably to other shopping streets in Manchester:

Market Street £300 Zone A

King Street £130 Zone A

St Ann's Square £180 Zone A

Deansgate £140 Zone A

Exchange Street £190 Zone A

Rental Values

It is our opinion that the estimated rental value as of today's date would lie in the region of £1,189,379 pa as detailed in the tenancy schedule.

There are number of asset management initiatives that could be implemented to reprofile the property and increase both rental and capital value. These include the following:

■ Opportunity to improve the retail tenant line-up in the short term on the internal Arcade units and benefit from rental growth. Barber Barber’s move from Unit 3 to Unit 5 provides the opportunity to re-let Unit 3. Terms have been agreed on Unit 3 at a headline Zone A rent of £84.24 and at the same time, terms have been agreed to reflect Unit 2 at a similar tone. Further information is available on request.

■ The 19,073 sq ft of creative office space at Barton Arcade has significant reversionary potential given that the passing rents range from £7.50 - £15per sq ft and rents for creative offices in comparable central Manchester locations are currently between £20 and £27.50 per sq ft.

■ Use upcoming lease events including rent reviews and expiries in the creative office leases to capitalise on the rental growth and improve net operating income.

■ Some of the smaller creative office suites could be reconfigured to create larger, open-plan areas with the potential to drive further rental growth.

■ Consideration could be given to alternative uses on the upper levels including further residential or an Aparthotel subject to planning.

■ The large basement area of over 11,000 sq ft is let on a short- term lease at a below market rent. At expiry this lease could be re-geared on a longer term basis on more attractive terms.

■ Potential to sell off a long leasehold interest in the penthouse flat.

Asset Management

98

Manchester has a population of approximately 2.8 million, with in excess of 12 million people within a 50 mile radius of the city centre and boasts the largest travel to work area of any conurbation outside of London.

The Greater Manchester region has benefited from large scale development in recent years, including the ongoing Metro Link expansion, £650 million Media City:UK development. The largest development in the North West – Noma is being undertaken at a cost of £800 million. The 20 acre masterplan is creating new homes, offices, hotels, shops and restaurants.

Further large scale development is planned for the city including the £800 million Manchester Airport City, which will be the largest UK development since the London 2012 Olympics (the £50 billion ‘Atlantic Gateway’ project which aims to reinvigorate the Manchester ship canal) and the Etihad Campus Project where a further £1 billion will be invested in the University of Manchester to develop it’s campus.

The Northern Powerhouse proposes to boost economic growth across the north of England, targeting the core cities of Manchester, Liverpool, Leeds, Sheffield and Newcastle. Manchester lies at the heart of these plans, representing the largest economically and geographically of the east coast cities.

The £300m development of the M56, A6 and the Airport Eastern Link to provide 10 km of new two lane dual carriageway on the east-west route from the A6 near Hazel Grove to Manchester Airport and the M56 will substantially ease congestion in the south of the conurbation.

Approximately £13 billion will be invested in transport infrastructure across the North including plans for High Speed 2 and 3, which will half the journey time to London to an improved travel time of just 68 minutes.

Major employers in the city include a number of blue chip businesses such as Barclays, BBC, ITV, HSBC, Kelloggs, Guardian Media Group, Stagecoach, Thomas Cook, RBS and numerous legal and professional firms. The relocation of BBC from London to Salford accounted for 2,500 new people coming to the City. Media City UK, where the BBC is located, is a £650 million, 36-acre scheme and it is estimated that the development will create up to 15,000 jobs and add approximately £1 billion to the regional economy over 5 years.

A merger of the University of Manchester and UMIST kick-started a £500 million building programme known as “Knowledge Capital” with the aim to become a top 10 university. Manchester has three universities providing one of the largest student populations in Europe with an estimated 100,000 students.

The City is also a thriving tourism, sporting and cultural economy. Key attractions in the City include the Manchester Arena (one of Europe’s busiest indoor venues), Imperial War Museum North, The National Football Museum, Old Trafford Cricket Club, Manchester United and Manchester City Football Clubs, the National Cycling Centre and the UK’s best theatre scene outside London with a total of 13 theatres.

The city continues to attract a multitude of global occupies such as Gazprom, Ford Credit, Syngenta, BNY, Emirates and Google.

LocationManchester is the administrative and commercial capital of the north west of England, one of Europe’s most dynamic cities, and is the largest economic centre in the country, outside of London.

1110

CommunicationsRoadManchester benefits from an excellent and highly developed transport infrastructure with the M60 Orbital Motorway connecting Greater Manchester with the M62, M61, M66, M67 and M56 motorways and providing a direct link to the National Motorway Network beyond.

RailThere are two mainline rail stations within the city centre (Manchester Piccadilly and Manchester Victoria), which provide intercity services throughout the UK including direct, regular services to London (fastest journey time under 2 hours); Edinburgh (3 hours 19 minutes) and Cardiff (3 hours 29 minutes).

AirManchester Airport is the largest UK regional airport and is located 13 km (8 miles) south of Manchester city centre. The airport operates over 200 direct flights to worldwide destinations with access to most of western Europe within 3 hours and daily direct flights to multiple US cities and Middle East hubs. The airport benefits from a direct rail link into the city centre with a journey time of approximately 15 minutes. A new terminal is planned for the airport which will be completed in 2023 and will see passenger numbers increase from the current 20 million each year to 50 million each year by 2050.

TramThe Manchester Metrolink System was the UK’s first modern street operating light rail system and now serves a significant proportion of the Greater Manchester conurbation, linking Bury, Oldham, Altrincham and Eccles, Ashton-under-Lyne, Rochdale, East Didsbury, Media City:UK and Manchester Airport to the city centre. The recently completed £185 million Second City crossing has improved the capacity, flexibility and reliability of the Metrolink system and also includes a new tram stop on Exchange Square.

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ST. ANN’SSQUARE

Manchester Central

Radisson Hotel

Midland Hotel

ManchesterCentral Library

Town Hall

ManchesterArena

Bridgewater Hall

Great Northern

Hilton Hotel

RoyalExchangeTheatre

St. Ann’ sChurch

House ofFraser

Selfridges

The Lowry Hotel

NationalFootballMuseum

The CornExchange

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SituationBarton Arcade is situated within Manchester’s prime retailing central core and was originally built to create a covered retailing link between Deansgate and St Ann’s Square. Nearby occupiers include House of Fraser and Harvey Nichols department store, Waterstone’s, Patisserie Valerie, The Botanist and Molton Brown.

BartonArcade

1312

Two large stone towers are positioned above the Arcade entrances on the Deansgate elevation. The property is currently arranged over sub basement, basement, ground and four upper floors comprising a mixture of retail, leisure, creative offices and one residential unit. All floors in the Arcade are served by two stairwells at each end of the property. The first stairwell is accessed from a glazed office entrance accessed from Barton Square which contains a 6-person 450 kg lift serving ground to third floor only. The second stairwell is accessed from the Arcade. Both stairwells and the goods lift serve the ground, basement and sub basement. A number of retail units contain staircases between ground, basement and first floors.

Internally, the ground floor is currently configured as 15 retail units with 7 units benefiting from unrestricted frontage to Deansgate. The majority of retailers benefit from basement accommodation which is used as additional sales area or for ancillary storage. Part of the first and all of the second and third floors comprise creative office suites accessed by the Arcade’s internal perimeter balcony. Above the offices, there is a penthouse flat.

The property has the advantage of a basement and sub basement area which follows the footprint of the building and is used for event space and has a 240 capacity night club.

DescriptionThe property comprises a purpose-built Victorian Arcade constructed between 1871 and 1874 and is the earliest of three Victorian Arcades built in Manchester prior to 1900. The property is Grade II* Listed (relating to all the facades including the roof, atrium and all the interior of the Arcade).

The Arcade is of cast/wrought iron frame construction with a combination of decorative stone and brick cladding to the exposed elevations covered by an ornate cast iron atrium of arches with glass in-fill panels.

The City ranks 1st on both PMA Retail Score and PMA Fashion Score. Major anchor store retailers represented include Selfridges, Harvey Nichols, Marks & Spencer, Debenhams, Kendalls (House of Fraser), Next and Primark.

The prime retail in the city is predominantly focused along the pedestrianised Market Street, which complements the Manchester Arndale Centre and the New Cathedral Quarter. Manchester Arndale Centre comprises 1.4 million sq ft and is anchored by Next with a full line up of mid-market fashion operators such as Top Man, Superdry, Hollister and River Island. The Centre provides a footfall of over 40 million and is considered to be one of the UK’s premier shopping centres.

Deansgate is one of the principal arterial routes through the city centre and is regarded as the traditional prime retail and leisure pitch. Deansgate has the ability to provide both day and night time trade due to its excellent location, being in close proximity to a wide ranging target audience and is still one of the strongest bar/restaurant

pitches. Operators include Las Iguanas, The Living Room, Cote, Gaucho Grill, Lunya, JD Wetherspoon and Patisserie Valerie.

St Ann’s Square is the historic retailing core linking Deansgate, King Street, The Royal Exchange Arcade and Market Street.

King Street is situated to the south of the retailing core acting as a major arterial route connecting the traditional CBD with Spinningfields. Designer and speciality retailers located on the Street include Hugo Boss, The White Company and Jack Wills. Spinningfields is the city’s leading business and leisure destination and is one of the UK’s most visited city centre destinations with over 5.5 million visitors per year, and daily footfall in excess of 14,000 people, and annual retail and leisure spend in excess of £80 million.

Prime rents in Manchester are currently at £300 per sq ft Zone A, whereas the top Zone A rent at Barton Arcade is c £140 per sq ft, demonstrating the prospects for rental growth.

Manchester is one of the UK’s top retail destinations with an estimated retail floorspace of 2.75 million sq ft and a retail spend of circa £3.9 billion per annum. The City ranks 2nd out of the UK PROMIS Centres, benefiting from an estimated primary catchment population of 1.6 million people.

Retailing in Manchester

1716

Creative Office MarketManchester is the strongest office market outside of Central London and has a total stock of 23 million sq ft with the City Centre accounting for 15.8 million sq ft.

The market consistently out performs all of the other regional cities and has been the best performer since 1989, producing an average rental growth of 3.7% pa and the City is expected to see faster office based employment growth over the next 5 years than Greater London and all of the key UK regional cities (6% compared with the UK average of 3.5%).

Manchester demonstrates robust occupational characteristics, consistently witnessing higher levels of take up than any of the other big 6 regional centres. Headline rents for Grade A office space in the City are currently £35 per sq ft. The rental tone for refurbished office space in these prime city centre locations ranges from approximately £20 to £27.50 per sq ft.

The creative office rents at Barton Arcade range from £7.50 per sq ft to £15 per sq ft and provide significant prospects for rental growth.

The market consistently out performs all of the other regional cities and has been the best performer since 1989

Creative Offices The creative office suites comprise circa 19,073 sq ft and are located on part first, second and third floors, accessed by the Arcade’s internal perimeter balcony. They provide a unique and affordable work space for a variety of media and creative businesses.

The creative offices are let to 9 tenants, including Offices North West Limited who are a serviced office provider. The office space is flexible and affords 24 hour access and security.

The Offices (North West) are a serviced office provider of high end flexible, fully serviced work space.

Matthew Hyde Associates are award winning architects based in Manchester in Sheffield.

GDP Funding are a specialist debt consultancy to the commercial property industry.

Six and Flow is a Manchester based venture and growth marketing agency, working across digital channels to help businesses improve brand awareness and customer acquisition.

The strength of trade has been demonstrated by the recent up-size by Barber Barber, Pot Kettle Black and the new lettings to Wok to Walk, Crowd UK and Sync.

Further information on the tenants is set out below

Barton Arcade Leisure/RetailThe Arcade is made up of an eclectic mix of both multiple and independent retail and leisure tenants including STA Travel, Wok to Walk, Barber Barber and Pot Kettle Black.

Barber Barber prides itself on impeccable service and extensive knowledge in the craft of men's haircutting and bespoke shaving, in luxurious surroundings, in the finest buildings in cities across the UK. Barber Barber operates from 5 central city locations throughout the UK including London, Birmingham and Leeds.

Stay True Ltd (Barber Barber)

Established in 1971 STA is one of the world's largest student and youth travel agency with over 200 branches in 12 different countries.

STA Travel Ltd

The R Store Ltd is an independent men’s fashion retailer specialising in new and vintage foot wear stocking brands such as Adidas, Nike, New Balance, Clarks Originals, Red Wing, Fred Perry, 80sCasuals and Casual Connoisseur.

The R Store Ltd

Wok to Walk is a fast food takeaway restaurant chain from the Netherlands and specialises in wok stir-fried Asian cuisine, with almost 100 restaurants around the world.

Wok to Walk

Catalonian Deli, Restaurant & Bar with representation in both Liverpool and Manchester as well as an online shop, recreating the very best of Catalan and Spanish food, dining culture and vibe.

Lunya Limited

International footwear brand established in 1987 and trade from 6 different premium locations including London and New York.

Jeffery-West Retail Ltd

Jill Black is an independent retailer stocking independent labels sourced from fashion shows around the world. The retailer has a long standing reputation for attracting 'in-the-know stylistas' (Manchester Evening News).

JILL BLACKWOMANSJill Black

Two Rugby League stars have swapped their on-pitch skills to bring artisan coffees to the people of Manchester. Pot Kettle Black came to fruition after a trip to Sydney with the idea of opening an Australian-style coffee shop in Manchester. PKB have a huge range of speciality teas, food, smoothies, wines, beers and bespoke cocktails.

Pot Kettle Black Coffee Limited

Intro is an independent menswear boutique and online store based in Manchester. Specialising in cutting edge fashion, stocking a large selection of premium based menswear brands

Intro

Sync is a purpose-built space for people and businesses to shop, learn, share, create and collaborate, offering Apple products and those of other leading tech brands. Sync is powered by GBM Digital Technologies, the largest Apple Service Provider in the North. In the last two years, it has been the largest Apple Authorised Reseller based on revenue and is also in the Top 20 of the Tech Track Top 100 Fastest Growing Companies in the UK (Business cloud, 2018).

Sync

2120

AccommodationThe property comprises approximately 56,129 sq ft (5,214.9 sq m) as detailed in the tenancy schedule.

Sub Basement

1 : 2

00

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ub B

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ent

The Brickworks

Leisure

Retail

Creative offices

Residential

N

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Jeffery West

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Sync

U/O Wok to Walk

STA Travel

Intro

U/O Seen Opticians

U/O William Hunt

Be At One

Access to Sub-basement

Access to Sub-basement

Ground Floor 1 : 2

00

00_G

roun

d Floo

rThe RStore

Pot Kettle Black Coffee Shop

Sync

U/O Wok to Walk

Lunya

STA Travel

U/O Barber Barber

Intro Men's fashion

U/O Seen Opticians

U/O William Hunt

Jeffery West

2322

First Floor

1 : 2

00

01_F

irst F

loor

U/O Barber Barber

The Offices(North West)

Sync

Lunya


Second Floor

1 : 2

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BrickworksBrickworks Manchester is a unique venue set in the vaults of Barton Arcade and extending to over 11,378 sq ft (1,057 sq m).

The basement underwent a refurbishment in 2017 with the exposed brickwork walls and arches cleaned and sealed and Wi-Fi and feature lighting installed in all chambers. Mechanical ventilation was installed on both north and south sides of the space to provide fresh air and efficient circulation. Brickworks has 8,000 sq ft dedicated to flexible, immersive space with a full bar, gin bar, 25 seater private screening room, and a 2,000 sq ft members lounge for the creative industries.

The venue is available for private hire for groups of up to 280 people and has already hosted a variety of events including promotional launches for Reebok, Lone Wolf Gin and a pop up event for Just Eat. Brickworks has already hosted filming & photography bookings, product launches, dinners, gigs, theatre productions and a fashion show. There are several other events booked for 2018. Brickworks benefits from its own dedicated entrance at ground level and can operate outside the opening hours of the retail arcade.

The current lease was for an initial term of 3 years but due to the success of the project and future investment planned for the sub-basement, the lease term will be extended to 5 years.

Service ChargeThe service charge budget year runs from 1st January to 31st December. The service charge budget for the year ending 31st December 2018 is £292,600 which reflects an overall rate of £5.21 per sq ft.

The service charge budget for year ending 31st December 2017 was £264,000, reflecting an overall rate of £4.70 sq ft.

There is a current service charge shortfall of £1,404 pa due to a service charge cap on Unit 11.

Further information on the service charge is available on the Data site.

EPCEnergy Performance Certificates (EPC’s) are not required as the building is Listed.

VATThe property has been elected for VAT and VAT will be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).

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ProposalOur clients are seeking offers in excess of £17,000,000 (seventeen million pounds), subject to contract and exclusive of VAT for the benefit of the freehold interest.

A purchase at this level, on the basis of the income outlined in the Tenancy Schedule, reflects a net initial yield of 6% and a reversionary yield of 6.55%, after allowing for standard purchaser’s costs of 6.74%. The price reflects a low capital value of £300 per sq ft.

The asset is held in a Jersey Property Unit Trust (JPUT). Further information is available on request.

Recent investment transactions include the following:

4/14 King Street and 99/103 Deansgate, ManchesterFreehold block on the corner of King Street and Deansgate sold in January 2018 for £8.7 million reflecting a net initial yield of 5.45%.

The block comprised 5 units on King Street and 4 on Deansgate with sold off residential upper parts. The price reflected a capital value of c. £878 per sq ft.

62/68 Cross Street, ManchesterFreehold retail and office investment let to 5 tenants, sold in September 2017 for £4.8 million, reflecting a blended net initial yield of 5.48% and an equivalent yield of 5%. This price reflected a capital value of £619 per sq ft.

101 Princess Street, ManchesterFreehold office/leisure investment bought by Standard Life in July 2017 for £8.1 million, which reflected a net initial yield of 6.39%. The property comprised a mixed use building with 2 nightclubs on the lower ground and basement with 5 upper floors of office accommodation.

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Further InformationA data room is available on request from this office.

For further information, or to arrange an inspection to view, then please contact:

Philip Hay [email protected] 020 7637 7100

Brook Wannop [email protected] 020 7637 7100

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. 100491. April 2018.

BartonArcade

prime mixed-use investment · unit 4 intro fashion ground floor 606 56.3 501 06/03/18 05/03/28...

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