St Paul’s Chambers, SheffieldPRIME CITY CENTRE MIXED USEINVESTMENT OPPORTUNITY FOR SALE

• StPaul’sChambersisverywellsituatedintheprimelocationofthecity,formingpartofthe‘HeartoftheCity’.

• OccupiersatStPaul’sinclude;DLAPiper,BarclaysCorporateBanking,PwCandtheGovernmentDepartmentforBusinessInnovation&Skills.Theleisureoccupiersinclude;CaféRouge,CaffèNero,Piccolino,PizzaExpress,GentingCasino,CosmoandSmokeBBQ.

• Thepropertyisahighquality,leisureandretaildevelopment,arrangedovergroundfloorandbasement,whichwasfullyredevelopedinearly2000’s,comprising4selfcontainedunitsmeasuring9,132sqft,alsobenefitingfromthegroundrentincomefromtheresidentialapartmentsabove.

• Thesubjectinterestisheldbywayofalongleaseholdinterestexpiring2251atapeppercornrenttoSheffieldCityCouncil.

• Atotalincomeof£199,600 per annumandaWeightedAverageUnexpiredLeaseTerm(WAULT)of13.1years.

• TheincomeisunderpinnedbyMitchellsandButlersRetail(No2)Limited,with87%oftheWAULTand57%ofthepassingrental.

• Offersaresoughtabove£3,000,000(threemillionpounds),subjecttocontractandexclusiveofVAT.

• ApurchaseatthislevelrepresentsaNetInitialYieldof6.25%,afterallowingforpurchaser’scostsof6.45%.

InvestmentSummary

Sheffield is England’s fourth largest city and the commercial, administrative and retail centre of South Yorkshire, with an urban area population of 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 its central location within the UK.

The city enjoys excellent access to the national motorway network, with Junctions 31 to 34 of the M1 on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to the north (Leeds, Barnsley and Wakefield) and south (Nottingham, Milton Keynes and London). In addition, the M18, accessed at Junction 32 of the M1 provides direct access to the Humberside Ports. The A57 and M67 provide access to Manchester, approximately 38 miles (61 km) to the west.

Sheffield Mainline Station provides direct services to the following UK cities with approximate 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-Bradford International and Doncaster Robin Hood Airports 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.

Location

The Heart of the City includes extensive public realm, including Sheffield Peace Gardens and the Winter Gardens which adjoin the Millennium Galleries. The surrounding buildings include a Mercure Hotel, Sheffield’s tallest residential tower incorporating 300 apartments, a large Q-Park car park, two existing prime office buildings and a final third building currently under construction.

The existing buildings at St Paul’s Place include over 125,000 sq ft of prime office accommodation and include occupiers such as; DLA Piper, Barclays Corporate Banking, PwC and the Government Department for Business

Innovation & Skills. The leisure occupiers include; Café Rouge, Caffè Nero, Piccolino and Pizza Express, amongst others.

The final phase of this development is now due for completion December 2015 and will comprise a 95,000 sq ft building with ground floor retail, leisure and offices above.

St Paul’s Chambers is also adjacent to the proposed new development of Sheffield’s Retail Quarter (SRQ), which is currently in the development consultation stage, with Phase 1 planned for completion by 2019.

Situation

St Paul’s Chambers is very well situated in a prime location, forming part of the ‘Heart of the City’, which is the busiest part of Sheffield city centre.

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St Paul’s Chambers

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Situation1 Piccolino2 CaffèNero3 CaféRouge4 Bills5 GentingCasino6 SmokeBBQ7 Cosmo8 PizzaExpress9 MercureHotel10 CostaCoffee11 3StPaul’sPlace-

new95,000sqftdevelopment

St Paul’s Chambers are set within an extremelyattractive, historic building constructed ofterracottaredbrick,believedtodatebacktothelate 1800’s. It was substantially re-modelled intheearly2000’s,toprovideaseriesofretailandleisureunits on the lowerpartswith residentialabove.

The ground floor and basement is offered forsalealongwiththegroundrentincomefromtheresidentialontheupperfloors.

Description

Property Tenant Area Sq Ft Area ITZACurrent Rent per Annum

Rent per Sq Ft

Lease Start Lease EndSecure Term

(yrs)Upwards Only Rent Reviews

8-12 St Paul’s ParadeMitchells and Butlers Retail (No 2) Limited

7,276 n/a £113,500 £15.60 25/12/2001 24/12/2036 20.125/12/2021*25/12/2026*25/12/2031*

2 St Paul’s Parade Coral Racing Limited 958 515 £39,500 £41.23 21/11/2012 20/11/2022 6.0 21/11/2017

4 St Paul’s Parade Premiere Employment Limited 433 367 £36,000 £83.14 05/07/2002 04/07/2017 0.6 n/a

8 St Paul’s Parade Clare Louise Morton 465 n/a £10,000 £21.50 28/09/2012 27/09/2018 1.8 n/a

Upper Floors Residential SPCMC Limited n/a n/a £600 n/a 25/03/2001 23/03/2126 109.4 n/a

TOTALS 9,132 £199,600 WAULT 13.1 yrs

* Upwards only rent review, linked to RPI compounded annually, with a collar and cap at 1% and 4%.

Tenancies

Income Analysis

Mitchells & Butlers Retail (No 2) Ltd(Reg no 03959664)This is the main operating company of M&B, whose latest accounts show a Turnover of £256.4m and a Net Worth of £147.4m. They have a Dun & Bradstreet credit rating of 5A1 and are deemed as very low risk. The property is trading as a Browns Brasserie & Bar.

Coral Racing Limited(Reg no. 541600)Trading as Coral, the tenant is one of the UK’s largest licensed betting offices. For the year ending September 2015, Coral Racing Limited reported a Turnover of £667m, a Pre-Tax Profit of £81.1m and a Net Worth of £264.1m. The tenant has a Dun & Bradstreet rating of 5A1.

The following chart reflects the weighted rental income for each tenant:

9%

87%3%0%

1%

Mitchells & Butlers Retail (No 2) Limited

Coral Racing Limited

Premiere Employment Limited

Clare Louise Morton

SPCMC Limited

TenureThepropertyisheldlongleaseholdonagroundleasetoSheffieldCityCouncilatapeppercornrent,expiring28/02/2251.

VATThepropertyhasbeenelectedforVAT.ThesalewillbetreatedasaTransferofaGoingConcern(TOGC).

Data RoomAdataroomcontainingalllegalandpropertyrelatedinformationisavailableonrequestfromCPP.

AnArgusvaluationCVLfileorExcelspreadsheetcontainingadetailedtenancyschedulecanbeobtainedfromCPPonrequest.

EPCEPC’sareavailableuponrequest.

ProposalOffersareinvitedabove£3,000,000(threemillionpounds),subjecttocontractandexclusiveofVAT.

ApurchaseatthislevelrepresentsaNetInitialYieldof6.25%afterallowingforpurchaser’scostsof6.45%.

ContactRob Darrington MRICS: PartnerDDI: +44(0)1142709163E: rob@cppartners.co.ukRoger Haworth MRICS: PartnerDDI: +44(0)1142709162E: roger@cppartners.co.uk

MISREPRESENTATIONACTTheseparticularsdonotconstitutepartofanofferorcontract.Alldescriptions,dimensions,referencetoconditionandnecessarypermissionforuseandoccupationandotherdetailscontainedhereinareforgeneralguidanceonlyandprospectivepurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactandmustsatisfythemselvesastotheiraccuracy.NeitherCommercialPropertyPartners,noritsemployeesorrepresentativeshaveanyauthoritytomakeorgiveanyrepresentationorwarrantyorenterintoanycontractinrelationtotheproperty.RentsquotedintheseparticularsmaybesubjecttoVATinaddition.Thereferencetoanymechanicalorelectricalequipmentorotherfacilitiesatthepropertyshallnotconstitutearepresentation(unlessotherwisestated)astoitsstateorconditionorthatitiscapableoffulfillingitsintendedfunctionandprospectivetenants/purchasersshouldsatisfythemselvesastothefitnessofsuchequipmentfortheirrequirements.Prices/rentsquotedintheseparticularsmaybesubjecttoVATinaddition.a)Theseparticularswerepreparedfrompreliminaryplansandspecificationsbeforethecompletionofthepropertiesandareintendedonlyasaguide.Theymayhavebeenchangedduringconstructionandfinalfinishescouldvary.Prospectivepurchasersshouldnotrelyonthisinformationbutmustgettheirsolicitortochecktheplansandspecificationsattachedtotheircontract.b)Wehavenotmadeanyinvestigationsintotheexistenceorotherwiseofanyissuesconcerningpollutionofland,airorwatercontaminationandthepurchaserisresponsibleformakinghisownenquiriesinthisregard.Designedandproducedbywww.thedesignexchange.co.ukTel:01943604500.December2016.

St Paul’s Chambers, SheffieldPRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE