q-park sheffield - allsop

SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

SHEFFIELDCASTLEGATE, 3 BROAD STREET WEST, S1 2BQ

Q-PARK


Q-PARKSHEFFIELDCASTLEGATE, 3 BROAD STREET WEST, S1 2BQ

Site outline for identification purposes only.

RIVERSIDESHEFFIELD

CROWN COURT

SHEFFIELD TRAIN STATION

SHEFFIELD TOWN HALLCASTLEGATE

REGENERATION

SHEFFIELD MAGISTRATES

COURT



INVESTMENT CONSIDERATIONS Prime multi-storey car park occupying a central location in Sheffield City Centre Sale and leaseback that will be let to the strong covenant of Q-Park Ltd for a minimum term

of 35 years Long leasehold Total proposed rent of £242,000 pa subject to annual RPI linked rent reviews

with a 1% collar and 4% cap Recommended car park for the adjacent Travelodge and the Ibis situated opposite,

with a number of leisure destinations within the locality

The A61 is in close proximity, providing access to the M1 and a wider network of A Roads

Providing 403 parking spaces arranged over 9 levels measuring approximately 127,154 sq ft The immediate Castlegate area is currently undergoing a £5.8 million council led regeneration Based on a purchase at asking terms the property has a very low capital value of only £36 PSF Offers sought in excess of £4,540,000 (Four Million Five Hundred and Forty Thousand

Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5%, after allowing for purchaser’s costs of 6.58%.



LOCATION

Sheffield is a city and metropolitan borough in South Yorkshire, in the North of England. Sheffield is centrally located 38.2 miles (61.5 km) south of Leeds, 38.0 miles (61.0 km) east of Manchester and 44.1 miles (71.0 km) north of Nottingham.

Sheffield benefits from excellent road communications, encircled by the A61, a major trunk road that connects northbound to the M1 and southbound to a wider network of A-roads. The M1 Motorway forms a primary arterial route from North England to the South, connecting Leeds and Central London.

Sheffield Railway Station is located to the south east of the City Centre and operates Cross Country and Northern services, providing access to destinations including Plymouth, Edinburgh, Glasgow and Nottingham. Direct services run to Manchester (51 minutes), Leeds (57 minutes) and Newcastle (1 hour 52 minutes). In addition, regular train services run to London St Pancras, with fastest journey times of 2 hours and 7 minutes.

Manchester International Airport is located 39.9 miles (64.2 km) to the west of Sheffield, providing domestic and international flight services, with direct trains running every 30 minutes from Sheffield Station to Manchester Airport in c. 1 hour 14 minutes.

Sheffield CityAirport

NOTTINGHAM

SCUNTHORPE

GRIMSBY

HULL

DONCASTER

ROTHERHAM

SHEFFIELD

HALIFAX

Huddersfield

Wakefield

Barnsley

DERBY

Newcastle-under-Lyme

Stoke-on Trent

Crewe

Stockport

Oldham

BuryRochdale

MANCHESTER

Grantham

LINCOLN

Mansfield

ChesterfieldBuxtonMacclesfield

Gainsborough

Peak

Dis

tric

t N

atio

nal p

ark

A56

A61

A61

A57

A57

A57

A57

A57

A57A57

A15

A15

A15

A15

A15

A15

A15

A46

A46

A46

A46

A46

A46

A46

A46

A46

A46

A46

A15

A63

A63

A15

A15

A15

A61

A61

A61

A61

A52

A52

A54

A53

A53

A34

A53

A53

A52

A52A52

A38

A38

A38

A38

A1

A1

A1

A1

A1

A1

A1

A1

A1

A6

A6

A6

A666

A628

A638

A631 A631 A631

A158

A158

A159

A159

A180

A164

A180

A159

A156

A156

A158

A614

A614

A614

A614

A453A606

A628

A616

A628

A623

A523

A523

A523

A523

A523A520

A520

A520

A523

A623

A619

A617

A610

A610

A610

A619

A6102

M6

M6

M6

M6

M1

M1

M1

M1

M1

M1

M1

M1

M1

M1

M1

M1

M1

M61

M62

M62

M62

M62

M62

M65

M62

M62M62

M62

M62

M18

M18

M18

M18

M18

M62

M62

M62

M56

M56

M60 M60

M60

M60

M66

M66

M67

M180

M180

A1(M)

A1(M)

A1(M)

A1(M) M180M181

RIVER DON

RIV ER DON

RIVER DON

SHEFFIELD BASIN

Spital H

ill

Savile Street

Tenter Street

B60

71

Broad Street

Cricket Inn Road

B6070

Commercial Street

West Bar Snig Hill

Queen Street

Bank Street

Townhead St

Campo Lane

Furniv

al Road

Furn

ival Road

Green Lane

Alma St

Exchange St

Sussex Street

A61

A61

A61

A61



SITUATION

The property is prominently situated on the eastern side of Broad West Street at its junction with Exchange Street. The A61 is located c.450 ft to the east of the subject property, forming a ring road around the City Centre and providing access to a wider network of arterial roads including the Sheffield Parkway (A57). Sheffield Station is positioned 0.8 miles (1.3 km) to the south which operates direct services to London St Pancras, Manchester and Leeds.

Sheffield City Centre is located a short 8 minute walk (0.5 miles) to the south west, benefitting from a mix of retail tenants including M&S, TK Maxx, Next and several leisure schemes including Odeon Luxe and Ponds Forge International Sports Centre.

DESCRIPTION

The property comprises a multi-storey car park which forms part of a larger development arranged over ground and 8 upper floors, including one level of rooftop parking. The overall development includes the adjacent Travelodge which is attached to the south of the subject property, but not included in the sale. The subject property provides 403 parking spaces and includes 3 retail units, these are located to the north and east of the property’s ground floor and all fall under Q-Park’s demise.

Vehicle access to the car park is via the north side of Broad Street West which runs to the south of the Travelodge Hotel. Pedestrian access is via a separate entrance on the west side of Broad Street West. There are two stairwells to the north and east of the property with the primary stairwell to the east incorporating 2 customer lifts serving all levels. The car park benefits from a customer lobby and staff office to the east of the property. The pay stations are located in the customer lobby on the ground floor.

Part ground and one entire upper floor is sublet to Sixt. Further information is available on the dataroom. The property provides a site area of 0.45 acres (0.182 hectares).



PROPOSED LEASE TERMS

TENANT GUARANTORACCOMMODATION

PROPOSED TERM

PROPOSED RENT

RENT REVIEWS OPTION TO EXTEND LEASELEVELS SQ FT SQ M SPACES

Q-Park LimitedQ-Park Holding B.V. (KvK number: 68805934)

0, 1-8 127,154 11,813 40335 years from completion

£242,000 pa (£600 per space)

Annual retail price index linked rent reviews with a collar of 1% and cap of 4%.

Option to renew the tenancy for two further periods of 10 years on identical terms at the passing rent.

127,154 11,813 403 £242,000 pa

*Measurements are approximate and for indication only – not to be fully relied upon. Any interested party should carry out their own measured survey. Note: The lease will be outside the security of tenure in Part II of the 1954 Landlord and Tenant Act.



881,465 parking spacesacross 10 northwest European Counties

Prominent UK locationsincluding London, Reading, Gatwick, Glasgow, Manchester and Dublin

Over 15 million customersin the UK and Ireland

Over 2,500 peopleemployed globally

Unique distinct brandserving 15 million customer across the UK and Ireland

TENANT COVENANT INFORMATION

Q-Park is a leading car park operator, with c. 900,000 spaces operating from over 6,500 parking facilities across the UK and Europe.

Since its establishment in 1998, Q-Park has grown to become Number 2 in the European parking market, active in 10 countries including Germany, Netherlands, Sweden, Finland, Norway and the UK.

Over its lifetime, Q-Park has undergone a number of growth strategies including acquiring Universal Parking, BCP, Epolia and the purchase of 285,000 spaces in 270 car parks from Bridgepoint. Most recently, the Dutch car park operator was acquired for €3 billion in May 2017 by KKR, a leading global investment firm.

Q-Park Limited has a D&B rating of 3A1 and an Experian Credit Rating of 80 reflecting ‘Below Average Risk’.

Q-Park Limited produced the following financial records over a three year period:

31/12/2015 31/12/2016 31/12/2017

Turnover £64,049,631 £68,701,295 £71,930,492

Pre-Tax Profit £835,734 -£2,670,274 £8,883,470

Shareholders Funds £2,506,495 -£460,570 £7,660,887

GUARANTOR COVENANT INFORMATIONQ-Park Limited is guaranteed by Q-Park Holding B.V., a limited private company. Formed under Dutch law, the company was established in May 2017 for the purchase of the Q-Park Group, acquiring 100% of the Group’s shares in October 2017.

Previously trading as Byzantium Acquisition MidCo 2 B.V., Q-Park Holding B.V. and its affiliated Group, hold their Headquarters in Amsterdam and are primarily involved with providing off and on-street parking services within strategic locations across Europe and the UK.

Q-Park Holding B.V. displays the following financial information:

31/12/2017 31/12/2018

Total Assets £4,630,300,000 £4,505,000,000

Group Equity £1,210,500,000 £1,113,300,000

Net Revenue £231,600,000 £877,900,000

6,579parking facilities



SHEFFIELD REGENERATION

Grey to Green is a three-part regeneration scheme within the historic Castlegate Quarter, which aims to encourage economic and environmental development into the area, through localised policies and sustainable initiatives.

Phase I of the scheme completed in 2016, and saw the transformation of the City’s former ring road into a green corridor. Located 0.3 miles west of the subject property, the redundant roadside space between West Bar and

Bridge Street has been converted into meadow and wetland habitats, also housing the largest sustainable urban drainage system in the country.

Works to Phase II begun in May 2019, targeting the declining retail pitch along Exchange Street and Waingate, situated adjacent to the subject property. Phase II of the scheme aims to generate economic activity in the area, converting vacant buildings into innovative and creative spaces for tech and start-up companies as part of the £3 million investment into an innovation and tech hub

within the City’s Quarter. The scheme also aims to attract and retain new retail tenants to create a vibrant shopping and leisure destination. Additionally, the initiative will focus on improving transport links and connectivity within the area, with new cycle routes and walking paths as well as improved bus travel times; to hotels within the locality, Wicker and Victoria Quays.

The third and final stage of the scheme will focus on Kelham Island and Victoria Quays, located 0.7 miles to the north west and 0.2 miles east respectively.

Site outline for identification purposes only.

PHASE 2

FUTURE DEVELOPMENT OPPORTUNITY



CENTRE OF SHEFFIELDLocated within the heart of Sheffield, circa 0.5 miles north east of the City Centre and a 10 minute walk to Sheffield Railway Station.

HOTEL PARKINGQ-Park Castlegate is the designated car park for the adjacent Travelodge and the Ibis situated opposite.

EASY ROAD ACCESSProminently positioned adjacent to the A61, an arterial route to the M1 Motorway and a wider network of A Roads.

DRIVER DEMANDESTABLISHED RETAIL DESTINATIONSheffield City Centre is a popular retail location, with the city’s prime retailing offering only a 10 Minute walk from the car park.

HUB FOR LEISURE FACILITIESIn close proximity to a number of leisure facilities including Odeon Luxe Cinema, O2 Academy Sheffield, The National Videogame Museum, Ponds Forge International Sports Centre and Hilton Sheffield.

CASTLEGATE REGENERATIONThe immediate area is to benefit from a £5.8 million council led regeneration of Castlegate, which includes the creation of a new retail destination adjacent to the car park.



CAR PARK INVESTMENT MARKET

The recent sales of long dated RPI linked Car Park Investments have proved particularly popular to investors as they provide an attractive secured income stream with excellent rental growth and strong underlying fundamentals. The supply of car parks in general has contracted of late as they have been redeveloped to other more valuable residential/commercial uses. Local Authorities have also attempted to restrict supply to town and city centre car parking in the backdrop of an anticipated decrease in car ownership.

Investment in the car park sector has been strong as demonstrated by the recent highlighted sales below:

ADDRESS TOWN DATE TENANT NO. OF SPACE RENT RENT PER SPACE UNEXPIRED LEASE TERM PRICE NIY (%)

Sovereign Square Leeds Jun-19 Q-Park 500 £900,000 £1,800.00 35 years £19,840,000 4.25%

North Street Newport Mar-19 NCP 83 £101,328 £1,221.00 18 years £1,900,000 5.02%

Dublin Road Belfast Jul-18 NCP 547 £514,272 £940.17 19 years £9,895,078 4.87%

Vernon Street, Moorfields Liverpool May-18 NCP 702 £798,149 £1,136.96 29 years £14,500,000 3.50%

1-21 The Martlets Crawley Apr-18 NCP 60 £80,000 £1,333.33 19 years £1,675,000 4.50%

Arthur Court, Queensway London Mar-18 NCP 85 £82,757 £974 19 years £2,500,000 3.11%

New Southgate Bradford May-17 NCP 430 £260,000 £604.65 21 years £5,000,000 4.88%

Mitchell Street Glasgow Mar-17 NCP 220 £482,566 £2,193.48 20 years £10,600,00 4.40%

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 06.19

Jeremy Hodgson020 7543 [email protected]

For further information or to make arrangements for viewing please contact:

Liam Stray020 7543 [email protected]

PROPOSALOffers sought in excess of £4,540,000 (Four Million, Five Hundred and Forty Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 5%, after allowing for purchaser’s costs of 6.58%.

allsop.co.uk

TENURE

Held Long Leasehold for a term of 200 years from 28th February 2006, less 2 days (thus having some 187 years unexpired), at a peppercorn rent.

DATAROOM

For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/Q-ParkSheffield

VAT

The property has been elected for VAT.

Year Rent NIY2020 £249,260 5.15%

2021 £256,738 5.31%

2022 £264,440 5.46%

2023 £272,373 5.63%

2024 £280,544 5.80%

Year Rent NIY2025 £288,961 5.97%

2026 £297,629 6.15%

2027 £306,558 6.33%

2028 £315,755 6.52%

2029 £325,228 6.72%

RUNNING YIELD ASSUMING AN ANNUAL AVERAGE RPI LINKED UPLIFT OF 3%, COMPLETION IN 2019 AND A PURCHASE AT 4.5% NIY.

https://datarooms.allsop.co.uk/register/QParkCroydon

allsop.co.uk

q-park sheffield - allsop

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