8-24 high street & 12-16 george street, sheffield...20.53 57.13 The tenant has installed a mezzaine...

8-24 high street & 12-16 george street, sheffield

Freehold Retai l Investment Opportunity

Freehold Retail Investment Opportunity

LOCAL ECONOMYSheffield has a thriving commercial economy estimated to be worth circa £9bn

a year and whilst historically built on steel, engineering and cutlery the city

now has a substantial service sector. Major employers include HSBC Bank, Capita Group, Aviva, Sky TV, Corus, Lloyds, DSGI, Virgin Media, BT, ANT Marketing and Freemans plc. The public sector is also a big

employer with Sheffield CC, the Department for Children, School & Families

and Department for Work & Pensions represented. Tourism is also important

to the South Yorkshire economy, contributing an estimated £1.2bn annually.

INVESTMENT SUMMARY■ Sheffield is a major regional retailing destination with

a primary catchment population of 626,000 persons and an estimated 892,080 within a 40 min drive time.

■ A substantial and prominent retail parade comprising approximately 3,799m² (40,895 sq ft) and a frontage onto High Street of 33m (109 sq ft).

■ Established tenants including Boots, McDonalds, HMV and Home Group.

■ Occupying a strong retailing pitch in close proximity to M&S, Caffé Nero, Carphone Warehouse, TJ Hughes (Lewis’s Home Retail), Virgin Media, Halifax, Starbucks, Office Shoes, HSBC, Select and H Samuel.

■ A WULT of 10.7 years.

■ Net current income of £1,190,251 per annum. 91% of income secured from National Multiple tenants.

■ Freehold

■ Includes vacant former banking hall (8,693 sq ft)

■ Offers are sought of £15,250,000 subject to contract and exclusive of VAT reflecting an attractive net initial yield of 7.4% allowing for purchase costs of 5.8%.

LOCATION & COMMUNICATIONSSheffield is England’s fourth largest city and a significant shopping, leisure and

cultural destination as well as being the principle administrative centre within

South Yorkshire. Bordering Derbyshire, the Peak District and the Pennines

the city is located approximately 57 km (35 miles) south of Leeds, 67 km (42

miles) east of Manchester and 270 km (168 miles) north of London.

The city is strategically located and benefits from excellent transport

communications. By road, the M1 (Junctions 33 & 34) passes north-east

of the city centre connecting Sheffield to Leeds to the north and Nottingham

to the south as well as Doncaster via the M18 to the north-east. The M62

motorway dissects the M1, 49 km (30 miles) to the north.

Sheffield also benefits from good rail links with the Supertram (light rail

system) serving the city centre (3 main routes). The city has a mainline

railway station which provides frequent and direct services to London (St

Pancras) and Birmingham with fastest journey times of approximately 126

mins and 64 mins respectively. Sheffield is served by Robin Hood Airport

which is located circa 19 km (12 miles) to the north-east of the city centre

handling over 1m passengers each year. In addition Leeds/Bradford and

Manchester Airports are within an hour’s drive.

Sheffield

THEPROPERTY

8-24 HIGH STREET & 12-16 GEORGE STREET, SHEFFIELD

DEMOGRAPHICSSheffield has a resident population of 547,000 (mid 2009 ONS estimate),

a primary catchment area of 626,000 and an estimated 892,080 within a

40 minutes drive time. The population is greatly enhanced by the presence

of 58,000 students at Sheffield’s two universities and is projected to see

above average growth in the next few years.

RETAILING IN SHEFFIELDSheffield has an extensive and varied retail offer, which provides an

attractive town centre, shopping environment. Total retail floor space is

estimated at 1.56m sq ft although the city’s retail provision is considered

to be disproportionally low given its extensive catchment. The shopper

population of 322,000 has an estimated £910m in available spend on

comparison goods according to CACI’s Retail Footprint 2011 which ranks

the city 20th nationally on this basis.

Prime retailing extends along a linear pitch from High Street and the Markets

area in the north-east and via Fargate, Barkers Pool and Pinstone Street to

the Moor in the south-west. Sheffield benefits from an array of national

multiples with the likes of M&S, John Lewis, Primark, Debenhams, Bhs, TK Maxx, Boots, Next, H&M Hennes, New Look, River Island, Top Shop, Dorothy Perkins, HMV, and WH Smith all located within the

city centre. Sheffield’s retail offer will be further enhanced with Hammerson’s

proposed ‘Sevenstone’ scheme which will transform a 20 acre site between

Fargate and the Moor incorporating the existing John Lewis Department

store at Barkers Pool. The development will comprise circa 60,500m² of

new retail floorspace but is yet to start on site.

SITUATIONThe property occupies a busy position in a strong and vibrant retailing

pitch at the junction of High Street and Fargate and benefits from an

extensive retail frontage of approximately 33m (109 ft). Occupiers located

nearby include M&S, Caffé Nero, Carphone Warehouse, TJ Hughes (Lewis’s Home Retail), Virgin Media, Halifax, Starbucks, Office Shoes, HSBC, Select and H Samuel.

8-24 High Street


DESCRIPTION8/24 High Street provides a substantial retail parade of four attractive

units arranged over basement, ground and first floors with three floors

of residential accommodation above and to the rear comprising circa 33

apartments which are accessed from George Street. Boots occupy the

adjoining property which are inter connected.

There is also a former banking hall within the ownership which is currently

vacant situated to the rear of the retail premises with access from George

Street. This unit has an A3 planning consent. Servicing to the retail units is

provided via an alley way to the side of Caffé Nero (off Fargate) and to the

rear via George Street.

The property built in circa 1897 is Grade II listed and has an ornate

sandstone facade under a steep slated roof incorporating sash dormer

windows. The property was substantially redeveloped behind the listed

facade by the vendor in the late 1990’s.

ACCOMMODATIONThe property provides a total approximate net internal floor area (less the

residential element) of 3,799m² (40,895 sq ft) as set out in the Schedule of

Tenancies and Accommodation (below).

TENUREFreehold.

TENANCIES

Tenant/ Address Lease Terms Unexpired Term (approx) Current Rent PAX Floor Areas Sq ft m² Comments

BOOTS THE CHEMIST LTD(8/12 High Street)

18 yrs 9 mths from 24/06/2000 expiring on 24/03/2019.Next RR - 24/06/2015

7.12 years £450,000(£231 ZA)

GFSITZA1st (Sales)BasementTOTAL

4,5331,4164,7223,950

13,205

421.12131.55438.67366.96

1,226.74

Boots occupy and lease adjoining property (4-6 High Street) on co-terminous terms with subject lease.

HMV (UK) LTD(14-18 High Street)

25 yrs from 24/06/2000 expiring on 23/06/2025. Next RR - 24/06/2015

13.38 years £340,000(£182 ZA)

GFSITZA1st (Sales)1st (Anc)BasementTOTAL

3,0551,2036,106

992,630

11,890

283.81111.76567.25

9.20244.43

1,104.58

HMV Music Ltd act as surety on the lease. For the Y/E 30/04/2011 turnover was £915,287,000 with a tangible net worth of £68,460,000.

MCDONALDS RESTAURANTS LTD(20-22 High Street)

25 yrs from 24/06/2000 expiring on 23/06/2025. Next RR - 24/06/2015

13.38 years £252,000(£186.50 ZA)

GFSITZABasementBasement TOTAL

3,5901,1162,227

6756,492

333.51103.68206.8962.71

603.11

Mezzanine floor is a tenant’s improvement and is to be disregarded at rent review.

MAX SPIELMANN LTD(24 High Street)

5 yrs from 25/12/2008 expiring on 24/12/2013.

1.87 years £38,250(£128.35 ZA)

GFSITZABasementTOTAL

394292221615

36.6027.1320.5357.13

The tenant has installed a mezzaine which is disregarded at rent review.

LIVE SMART @ HOME LTD(George St Plaza)Residential Uppers

25 yrs from 19/11/2001 expiring on 18/11/2026. Next RR 19/11/2016 (OMV)

14.78 years £110,000 33 apartments. Lease guaranteed by Home Group Ltd. (5A1) - net worth £258,685,000

Vacant (12/14 George Street)

n/a Ground FloorBasement1st FloorTOTAL

4,9872,3721,3348,693

463.29220.36123.93807.58

Grade II isted. Planning consent for A3 use. Opposite Best Western Hotel.

SOUTH YORKSHIRE PTE(Rail System)


21.15 years £1

YORKSHIRE ELECTRICITY GROUP LTD(Sub-station)


48.36 years n/a

£1,190,251 40,895 3,799.15

The Weighted Unexpired Lease Term (WULT) is 10.7 years


AFFINITY

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Sheffield - Central

45 metresThis Goad Plan is for identification only and not to be scaled as working drawing. No part of this plan may be entered into an electronic retrieval system without prior consent of the publisher. © Crown copyright 2011. Licence number PU100017316. For full terms and of copyright conditions visit www.goadplans.co.uk/copyright


INVESTMENT ACTIVITYThere has been recent freehold investment activity in Sheffield’s core retail

area. Carmel House, Fargate (H&M, HSBC, Footlocker & 3 Store) was sold

in late December 2011 to RREEF for circa £22m reflecting a net initial yield

of circa 5.91% and 20/30 Fargate (Clintons, Game, Lush & Thorntons) was

sold in September 2011 to CBRE Global Investors for £10.25m reflecting a

net initial yield of 6.52%.

VATIt is anticipated that the sale will be treated as a Transfer of a Going Concern

(TOGC). If this is not the case the property has been elected for VAT and

therefore VAT will be payable on the purchase price.

PROPOSALWe have been instructed to seek offers of £15,250,000 (Fifteen Million, Two Hundred and Fifty Thousand Pounds), subject to contract and

exclusive of VAT for the freehold interest reflecting a net initial yield of 7.4% allowing for purchaser’s costs of 5.8%.

CURRENT INCOME PAX£1,190,251.(Reflecting Zone A rates between £231-£128 psf)

INCOME ANALYSIS• LeaseExpiryProfile

59% of the current income is secured for a further 13 years

97% is secured for a further 7 years.

• CovenantProfile

91% of the current income is secured to nationally renowned tenants

68% is leased to 5A1 D&B rated covenants

7 to 13 years to

expiry 38%

13+ years to

expiry 59%

0 to 7 years to

expiry 3%

Regional9%

National91%

COVENANT STRENGTH

TenantFinancial

Y/ETurnover

000’sPre-Tax

Profits 000’sNet Worth

000’s

Boots UK Ltd 31/03/2011 £6,372,000 £220,000 £217,000

HMV (UK) Ltd 30/04/2011 n/a n/a £86

HMV Music Ltd (G) 30/04/2011 £915,287 (£52,580) £68,460

McDonalds Restaurants Ltd 31/12/2010 £1,184,462 £157,211 £355,953

Max Spielmann Ltd 02/10/2010 £11,597 £835 £1,233

Live Smart @Home Ltd 31/03/2011 £4,355 £531 £8,980

Home Group Ltd (G) 31/03/2010 £302,458 £10,372 £258,688

SERVICE CHARGEThere is a service charge in operation at the property for maintenance and

security of common parts/service yards and external repairs. For the year

01/01/2012 to 31/12/2012 the budget is £23,598. The leases provide

for service charge recovery based on apportioned gross internal areas

(excluding the common parts). There are no current landlord shortfalls. As

the vacant banking hall is Grade II listed empty rates are not payable.

FURTHER INFORMATION

For further information please contact:

DavidFreeman James Baillie Ed Smith

020 7659 4830 020 7659 4839 020 7659 4831

[email protected] [email protected] [email protected]

MISREPRESENTATION These particulars do not constitute an offer or contract. They are intended as a guide to prospective purchasers. All reasonable care has been taken in the preparation of these particulars but their accuracy is not guaranteed. The purchaser should satisfy himself and as to the correctness of these details. Neither the agents nor the vendors or lessors are to be or become under any liability or claim in respect of these particulars. These particulars are supplied on the understanding that all negotiations are conducted through this office. February 2012.

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8-24 high street & 12-16 george street, sheffield...20.53 57.13 The tenant has installed a mezzaine...

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