CITY POINT VELOCITY VILLAGE SOLLY STREET SHEFFIELD, …approximately 61,500 between the University...

CITY POINT VELOCITY VILLAGE SOLLY STREET SHEFFIELD, S1 4DFPRIME CITY CENTRE MULTI-LET OFFICE INVESTMENT

INVESTMENT CONSIDERATIONS

▼ Prominent multi-let office and leisure investment located in the heart of Sheffield city centre

▼ The property comprises modern office and gym accommodation extending 34,792 sq ft (3,232 sq m) NIA.

▼ Let to six well-regarded tenants including; Anytime Fitness, DLP Planning, Chase Medical, Brewster Pratap, Wakesmith Solicitors and Search Consultancy

▼ Total passing rent of £397,772 per annum (£12.03 psf overall)

▼ Attractive WAULT of 8.51 years to expiry (3.60 years to breaks)

▼ Numerous asset management opportunities

▼ The 1st and 2nd floors previously benefitted from planning consent for conversion to 30 residential apartments underpinning strong alternative

use value

PROPOSAL▼ Offers invited in excess of £4,800,000 (Four Million, Eight Hundred Thousand

Pounds), subject to contract and exclusive of VAT. This reflects an attractive Net Initial Yield of 7.75% and a low Capital Value of £138 psf, assuming standard

purchasers costs.

DATAROOM▼ For further information please visit the dataroom via the following link:

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

For identification purposes only.

FARGATE

SHEFFIELD INTERCHANGE

SHEFFIELD

CITY RING ROAD

SHEFFIELD RAIL STATION17 MINS WALK

SHEFFIELD UNIVERSITY5 MINS WALK

CITY POINT, VELOCITY VILLAGE SOLLY STREET, SHEFFIELD, S1 4DF

SHEFFIELDSheffield is the UK’s fourth largest major city economy with internationally recognised brands in manufacturing, engineering and design based in the City.

The City has seen an expansion in its knowledge economy, particularly the professional and financial services sector. Sheffield is home to a number of blue chip companies such as Aviva, Capita Group, Virgin Media, PWC, Sky and HSBC as well as a number of growing national and local companies such as Bond Bryan, BDO and Grant Thornton.

The City is also a major educational centre with a student population of approximately 61,500 between the University of Sheffield and Sheffield Hallam University, both globally recognised educational institutions.

V2 Velocity Village, situated adjacent to the subject property, has recently been sold to the University of Sheffield, operated by Sheffield International College comprising over 64,000 sq ft of high quality accommodation.

A1(M)

A3(M)

A1(M)

M180

A1(M)

A1(M)

M1

M25

M20

M42

M56

M55 M56

M61 M62

M48

M50

M27

M32

M25

M23

M1

M1

M6

M6

M6

M6

M5

M3

M4M4

M5

M2

M18

ManchesterInternationalAirport

Piccadilly

St Pancras International

YORK●

LEEDS●

NEWCASTLEUPON TYNE

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HULL●

MANCHESTER●

LIVERPOOL●

BLACKPOOL●

CARDIFF●

SWANSEA●

WORCESTER●

BATH●

BRISTOL●

●SOUTHAMPTON

●PORTSMOUTH

MAIDSTONE● FOLKSTONE

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OXFORD●

HEMELHEMPSTEAD

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BEDFORD●

CHELMSFORD●

GRIMSBY●

SKEGNESS●

BOSTON●

MILTON KEYNES●

NORTHAMPTON●

LEICESTER●

BIRMINGHAM●

NOTTINGHAM●

LOUGHBOROUGH●

LINCOLN●

LONDON

BRIGHTON●

PENZANCE●

FALMOUTH●

TRURO●

PLYMOUTH●

EXETER●

WEYMOUTH●

NORWICH●

CAMBRIDGE●

PETERBOROUGH●

BURY STEDMUNDS

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SHEFFIELDSHEFFIELD

ROAD

Destination Distance

London 72 miles

Manchester 37 miles

Leeds 33 miles

AIR

Airports Distance

Doncaster International 18 miles

Manchester International 39 miles

London Luton International 129 miles

RAIL

Destination Journey Time Completion of HS2

London St Pancras International 2 hours 69 minutes

Manchester Piccadilly 51 minutes 30 minutes

Leeds 40 minutes 28 minutes

Birmingham 65 minutes 38 minutes


POPULATION IN EXCESS OF

1.5 MILLION IN SHEFFIELD

METROPOLITAN DISTRICT

STUDENT POPULATION

IN EXCESS OF

60,000 ACROSS TWO WORLD

RENOWNED UNIVERSITIES

SHEFFIELD IS A POPULAR TOURIST

DESTINATION WITH AN ESTIMATED

20 MILLION VISITORS PER ANNUM

SHEFFIELD CITY REGION

ECONOMY WORTH

APPROXIMATELY

£30BN

£22 MILLION INVESTED IN DIGITAL

INFRASTRUCTURE SINCE 2015

20,000+ BUSINESSES

LOCATED IN SHEFFIELD

CITY CENTRE

SHEFFIELD ATTRACTS MAJOR EMPLOYERS DUE TO A STRONG SPECIALIST ADVANCED MANUFACTURING TALENT POOL &

GROWING DIGITAL ECONOMY

MAJOR EMPLOYERS INCLUDE

A NEW £20 MILLION FABRICATION FACILITYThe proposed 66,700 sqft Boeing Sheffield facility will be located at the Sheffield Business Park and will be the first Boeing Manufacturing facility in Europe.

A NEW £50 MILLION MCLAREN COMPOSITES TECHNOLOGY CENTREThe facility is based at the Advanced Manufacturing Innovation District. The facility will manufacture carbon fibre chassis and provide a £100 million boost to the economy.

A NEW £90 MILLION GRADE A OFFICEHSBC is investing in a 140,000 sqft city centre office which will serve as a global IT shared service centre and create 2,700 jobs.

BUS

SITUATIONCity Point occupies a prime position in the in the heart of the city’s business district, 0.7 miles north west of Sheffield mainline rail station.

City Point and the wider Velocity Village development forms an island site to the north of the city centre bounded by Tenter Street to the east, Solly Street to the north, Bakers Lane to the west and White Croft to the south. Buildings V1, V2 and V5 enclose a public plaza, whereas buildings V3 and V4 surround several landscaped courtyards. Car park access/egress is provided via Solly Street and White Croft, and there are a variety of access/egress points to the residential accommodation.

The immediate area surrounding Velocity is rapidly changing into a vibrant mixed-use location, featuring offices, residential and an on-going expansion of student accommodation and amenities, with large developments currently on site immediately adjacent by Derwent and Unite.

The property is situated only a 5 min walk from both City Hall and Cathedral stops for the Sheffield Supertram network, providing access to the Yellow and Blue lines. Trams run on cross-city services: Malin Bridge–Halfway (Blue Line), Middlewood–Meadowhall (Yellow Line) and Herdings Park–City, extending to Meadowhall at certain times of day (Purple Line).

© Crown Copyright, ES 100004106. For identification purposes only.


SHEFFIELD ATTRACTS MAJOR EMPLOYERS DUE TO A STRONG SPECIALIST ADVANCED MANUFACTURING TALENT POOL &

GROWING DIGITAL ECONOMY

ST MARY’S ROAD

SHEFFIELD PARKWAY

ST MARY’S GATE

HANOVER W

AY

UPPE

R H

AN

OV

ER

ST

GLOSSOP ROAD

WILKINSON STREET

ST P

HIL

IPS

RO

AD

NETHERTHORPE R

OAD

GARDEN STREET

HOLLIS CROSS

WHITE CROFT

GIBRALTER STREET

DEREK DOOLEY WAY

LADY’

S BRI

DG

E

NU

RSERY STREET

SCOTLAND STREET

TENTER STREET

HOYLE

STR

EET

BROOK HILL

BROAD LANE

SHEA

F ST

REET

PON

D S

TREE

T

PON

D STR

EET

BANK STREET

WEST BAR

ALMA STREET

COMMERCIAL STREET

CHURCH STREET

EYRE

STR

EET

MALTIDA STREET

NORFOLK ROAD

SOU

TH STR

EET

ARUNDEL GATE

FUNRIVAL GATE

CH

ART

ER R

OW

MO

OR

WELLINGTON STREET

DIVISION STREET

FUNRIVAL ST

SOLLY STREET

A6135

B6070

CITY ROAD

NORFOLK PARK ROAD

Kelham

St Vincent’s

St George’s

TheMoor

Cultural Industries

Cathedral

Wicker

Sheaf

Castlegate

SHEFFIELD

SHEFFIELDINTERCHANGESHEFFIELDINTERCHANGE

University of Sheffield

SheffieldHallam

University

SiteGallery

TheLeadmill

DFS

SheffieldCollege

GoalsSheffield

All SaintsCatholic School

Norfolk ParkFields

Skye Edge FieldsMillennium

Gallery

GrosvenorCasino

Sheffield

ParkHill

MoorMarket

WestOne

CityHall

Curzon

Odeon

O2Academy

SheffieldCathedral

TownHall

JohnLewis

Crucible

Lyceum

OrchardSquare

PeaceGardens

Pond FordInternationalSports Centre

University of Sheffield& Turner Museum of GlassThe

Diamond

River Don

For identification purposes only.


DESCRIPTIONThe property forms part of building City Point of the wider Velocity Village development and comprises a modern well specified office and gym arranged on ground and three upper floors.

The offices occupy part ground, first, second and third floors and benefit from their own self-contained access from Tenter Street. The well-appointed part ground floor gym is also accessed from its own entrance on Tenter Street.

A central core provides a lift to all floors and internally the offices provide a mixture of high quality open plan and partitioned accommodation with VRF air conditioning, part raised floors and perimeter trunking, suspended ceilings, carpet flooring and double glazing. Part of the Ground Floor is currently occupied as a Gym (D2 Use Class), operated as an Anytime Fitness. The property also has access to underground parking comprising 552 secure parking spaces, operated by NCP, which is excluded from the sale.

The wider Velocity Village estate was developed in two phases, the offices at City Point forming part of the first phase which also includes 132 apartments, excluded from the sale.

In addition, and excluded from sale, the wider Velocity Village development comprises:

▼ Two storey 552 spaces underground car park spanning the majority of the envelope of the estate. This is operated by NCP and is easily accessed from the property.

▼ V2 – 65,000 sq ft office building (now a teaching facility), sold on a long lease to the University of Sheffield in 2015.

▼ V3 & V4 - 288 apartments to the rear of the estate

▼ V5 – 24 apartments and 3,000 sq ft of commercial accommodation

TENUREVirtual Freehold for a term of 999 years from completion of the sale, on a peppercorn rent.


DEMISE PLAN

L1 - 69.800

L2 - 73.400

L3 - 77.000

L4 - 80.600

L5 - 84.200

L6 - 87.800

L7 - 91.400

L8 - 95.800

P1 - 66.200

P2 - 63.300

PUBLIC PLAZA

FFL + 66350SSL+66.200

+68.434

FFL+67.492FFL+67.077

SSL 69 800FFL+69.950

FFL + 66350SSL+66.200

SSL 69 800FFL+69.950L1 - 69.800

L2 - 73.400

L3 - 77.000

L4 - 80.600

L5 - 84.200

L6 - 87.800

L7 - 91.400

L8 - 95.000

P1 - 66.200

P2 - 63.300

+67.077

+65.570

FFL+69.950

CAR PARKENTRANCE/EXIT

PUBLIC PLAZA

V2COMMDRYRISER

LEVEL L3

LEVEL L4

LEVEL L6

LEVEL L7

LEVEL L8

LEVEL L5

LEVEL L9

SOLLY ST

V1RESIDRYRISER

PUBLIC PLAZA

SOLLY ST

L1 - 69.800

L2 - 73.400

L3 - 77.000

L4 - 80.600

L5 - 84.200

L6 - 87.800

L7 - 91.400

L8 - 95.000

ELEVATION 13

CDO NOT SCALE for construction and verify all dimensions prior to manufacture

Talbot Chambers 2-6 North Church Street Sheffield S1 2DH

A3 ScaleA1 Scale

Revision

tel: +44(0)114 2490944

Drawn ByDate

www.axis-architecture.com

Drawing Number Revison

A X I Sa r c h i t e c t u r e

fax: +44(0)114 2490966

COPYRIGHT EXISITS ON ALL DESIGN AND INFORMATION SHOWN

B EXISTING ELEVATION REPLACEDWITH PROPOSED V2 ELEVATIONS; V2SIDE ELEVATION ADDED; AREASAMENDED

20.11.2014

1:200 1:400

411

512

613

14

VELOCITY URBAN VILLAGETenter Street

SHEFFIELDMREF VV DEVELOPMENTS LTD

EXISTING ELEVATIONS - SIGNAGE AREAS

NOV 2014 A X i S

B26573(LEGAL)300

V2 COURTYARD ELEVATION

V2 SOLLY STREET ELEVATION

V2 TENTER STREET ELEVATION

V2 SIDE ELEVATION

X:\26573_Velocity Village\Drawing\CAD\26573(legal)300.dwg

Proposed Virtual Freehold Demise.

GROUND FLOOR

FIRST FLOOR

SECOND FLOOR

THIRD FLOOR


GROUND FLOOR

FIRST FLOOR

SECOND FLOOR

THIRD FLOOR

FLOORPLAN

VACANT

For illustrative purposes only.


UNIT TENANT NAME AREA (SQ M)

AREA (SQ FT)

LEASE START

LEASE EXPIRY

RENT REVIEW

BREAK WAULT (EXPIRY)

WAULT (BREAK)

TOTAL EFFECTIVE

RENT (£ PA)

TOTAL EFFECTIVE

RENT (£ PSF)

COMMENTS

P1GF Sinoarm Limited (t/a Anytime Fitness)

397.5 4,279 12/03/15 11/03/30 12/03/20 12/03/25

12/03/25 11.53 6.53 £38,745 £9.06 Rent Review subject to RPI increases (Collar/Cap at 2-4%)Rent Deposit of £15,000 + VAT Licence to Alter in respect of tenant’s fit out

P1GF DLP (Planning) Limited 273.4 2,943 28/10/14 27/10/20 27/10/17 2.15 2.15 £33,600 £11.42 Open market rent review outstanding Licence to Alter in respect of tenant’s fit out

P1 GF Wing Sinoarm Limited (t/a Anytime Fitness)

160.1 1,723 12/04/17 11/03/30 12/03/20 12/03/25

12/03/25 11.53 6.53 £11,907 £6.91 Licence to Alter in respect of tenant’s fit-out Rent Deposit of £7,144.20 (inc of VAT)

P2 F1 Chase Medical Limited 395.5 4,257 26/09/14 25/09/19 1.06 1.06 £52,380 £12.30

P2 F1 Cityroad Limited (t/a Brewster Pratap Recruitment Group)

312.3 3,361 01/01/15 31/12/25 01/01/20 01/01/20 01/01/23

6.33 1.33 £40,200 £11.96 Lease Guarantee: Mr Nigel Brewster & Mr Nicholas Robert PratapOpen market rent review

P2 F1 Wing Vacant 159.7 1,719

L1 F2 Wake Smith Solicitors Limited

768.5 8,272 25/12/15 24/12/30 25/12/20 25/12/25

23/06/23 12.32 4.81 £110,604 £13.37 Current Rent: £106,350 p.a. subject to a fixed rent increase on 25/12/2018 to £110,604 p.a. (to be topped up by the Vendor)6 month rent penalty if tenant exercises breakS/C cap from 23/06/17, subject to annual RPI uplifts

L2 F3 Wake Smith Solicitors Limited

362.2 3,898 25/12/15 24/12/30 25/12/20 25/12/25

23/06/23 12.32 4.81 £50,804 £13.03 Current Rent: £48,850 p.a., subject to a fixed rent increase on 25/12/2018 to £50,804 p.a. (to be topped up by the Vendor)6 month rent penalty if tenant exercises break S/C cap from 23/06/17, subject to annual RPI uplifts

L2 F3 Search Consultancy Limited

390.3 4,201 23/02/16 22/02/26 23/02/21 23/02/21 7.48 2.48 £57,132 £13.60 Open market rent review

Former Security Office

Shirebrook Cleaning Limited

12.9 139 14/12/16 13/12/19 1.28 1.28 £2,400 £17.28 All inclusive rentMutual break option upon 3 months notice

3,232.3 34,792 8.51 3.60 £397,772 £12.03

ACCOMMODATION & TENANCIESCity Point, Velocity Village is multi-let in accordance with the tenancy schedule below, on effective FR & I leases. The total Effective Rent is £397,772 per annum; reflecting a low average rent of £12.03 psf.


MANAGEMENTThe Service Charge is apportioned on a weighted floor area basis.

The following table sets out the service charge expenditure in recent years and this years current budget:

Year End Expenditure Actual % Change

2019 (Budget) £136,049 1.7%

2018 £133,676 -3.8%

2017 £139,021

COVENANT INFORMATION

Search Consultancy LimitedOperating for over 30 years, Search Consultancy has grown to become one of the UK’s leading recruitment consultancies with offices in 15 locations nationwide employing over 700 employees.

Search Consultancy have operated from Sheffield since 2005 and moved to Velocity Village in February 2016.

Search Consultancy Limited accounts for 14% of the contracted rent and recently recorded the following financial information:

01 Jan 2017 03 Jan 2016 04 Jan 2015

Turnover £178,825,000 £173,635,000 £156,306,000

Pre-Tax Profit £4,285,000 £6,484,000 £5,210,000

Total Net Worth £15,839,000 £13,351,000 £11,943,000

Chase Medical LimitedChase Medical is the leading agency in the UK, supplying staff into the Primary Care sector specialising in General Practice, Community and Urgent Care settings and providing staff to over 25% of all UK GP Practices.

Chase Medical Limited accounts for 13% of the contracted rent and recently recorded the following financial information:

30 Nov 2017 30 Nov 2016 30 Nov 2015

Turnover - - -

Pre-Tax Profit - - -

Total Net Worth £1,111,922 £863,191 £726,502

DLP Planning LimitedDLP Planning Ltd is a part of the DLP Consulting Group Ltd, a multidisciplinary consulting group offering a wide range of services in transportation and transport planning, civil engineering, urban design, architecture and neighbourhood planning.

Established in Bedford in 1991, the group has operated for over 27 years and now operates from 9 permanent offices. In recent years, the group has undergone rapid expansion with the acquisition of Inskip Partnership in 2006 and Laurence Wilbraham Associates in 2015.

DLP Planning Ltd accounts for 9% of the contracted rent and recently recorded the following financial information:

31 Jul 2017 31 Jul 2016 31 Jul 2015

Turnover - - -


Total Net Worth £661,662 £470,394 £520,066

Cityroad Limited (t/a Brewster Pratap Recruitment Group) [04842988]Cityroad Limited operates under the brand Brewster Pratap specialising in recruitment for Accountancy, Finance, Business Support and Engineering sectors. The company operates from three regional offices, located in Sheffield, Doncaster and Leeds.

The company has benefitted from consistent three year growth recording Total Current Assets of £813,391 and Total Net Worth of £85,617 (31/12/2017).

Cityroad Limited accounts for 11% of the contracted rent and recently recorded the following financial information:

31 Dec 2017 31 Dec 2016 31 Dec 2015

Turnover - - -


Total Net Worth £85,617 £61,882 £46,008

Wake Smith Solicitors LimitedWake Smith Solicitors is one of South Yorkshire’s leading firms of solicitors, based in Sheffield for over 200 years. The firm has more than 100 staff and 18 directors, with more than 40 experienced legal professionals; including solicitors, associates, consultants and chartered legal executives.

Wake Smith & Co merged with Benson Clegg in August 2006, and later with Tofields, in 2007, forming Wake Smith & Tofields. In May 2015, Wake Smith LLP converted to Wake Smith Solicitors Limited. Prior to the conversion, the company recorded a Turnover of £5,545,184 and Pre-Tax Profit of £1,124,296. The company recently recorded Total Shareholders’ Funds of £779,900 in April 2017.

Wake Smith Solicitors Limited accounts for 40% of the contracted rent.



URBAN REGENERATIONSheffield is witnessing a huge volume of inward investment into its city centre. Several development projects are underway within the city, driven primarily by government funding. It is expected that approximately £1.3 billion will be invested into the local economy over the next 30 years. There is currently a total of 278,000 sq ft under construction,

of which almost 60% is due to complete in 2019.

One of the largest schemes in this redevelopment is the Heart of the City project, a £470m regeneration of 1.5 million sq ft in the Sheffield City Centre. The development provides a new and vibrant, mixed use district, transforming the area into an exciting place to both live and work.

PLANNINGSheffield has benefitted of late from significant regeneration, in particular, the conversion of secondary office accommodation to alternative and higher value uses, including residential.

In June 2014, Notification of Prior Approval (Planning Ref. 14/1546/OPRN) of the Second and Third floors of City Point was successfully made to facilitate conversion to

residential use to provide 30 apartments. The consent was not implemented, however, the potential exists to implement this in the future, and potentially extent the approval to all floors if required, subject to additional consents.

Units P1GF and P1GF Wing, occupied by Sinoarm Limited (t/a Anytime Fitness) benefit from D2 Use Class for gymnasium use (Planning Ref. 14/4302/FUL & 16/02151/CHU).

ST MARY’S ROAD

SHEFFIELD PARKWAY

ST MARY’S GATE

HANOVER W

AY

UPPE

R H

AN

OV

ER

ST

GLOSSOP ROAD

WILKINSON STREET

ST P

HIL

IPS

RO

AD

NETHERTHORPE R

OAD

GARDEN STREET

HOLLIS CROSS

WHITE CROFT

GIBRALTER STREET

DEREK DOOLEY WAY

LADY’

S BRI

DG

E

NU

RSERY STREET

SCOTLAND STREET

TENTER STREET

HOYLE

STR

EET

BROOK HILL

BROAD LANE

SHEA

F ST

REET

PON

D S

TREE

T

PON

D STR

EET

BANK STREET

WEST BAR

ALMA STREET

COMMERCIAL STREET

CHURCH STREET

EYRE

STR

EET

MALTIDA STREET

NORFOLK ROAD

SOU

TH STR

EET

ARUNDEL GATE

FUNRIVAL GATE

CH

ART

ER R

OW

MO

OR

WELLINGTON STREET

DIVISION STREET

FUNRIVAL ST

SOLLY STREET

A6135

B6070

CITY ROAD

NORFOLK PARK ROAD

Kelham

St Vincent’s

St George’s

TheMoor

Cultural Industries

Cathedral

Wicker

Sheaf

Castlegate

SHEFFIELD

SHEFFIELDINTERCHANGESHEFFIELDINTERCHANGE

University of Sheffield

SheffieldHallam

University

SiteGallery

TheLeadmill

DFS

SheffieldCollege

GoalsSheffield

All SaintsCatholic School

Norfolk ParkFields

Skye Edge FieldsMillennium

Gallery

GrosvenorCasino

Sheffield

ParkHillWest

One

CityHall

Curzon

Odeon

O2Academy

SheffieldCathedral

TownHall

JohnLewis

Crucible

Lyceum

OrchardSquare

PeaceGardens

Pond FordInternationalSports Centre

University of Sheffield& Turner Museum of GlassThe

Diamond

River Don

1

4

6

5

3

2

1

2 3

4 5 6

ST PAUL’S PLACESt Paul’s Place consists of a large mixed-use scheme, including the newly constructed 3 St Paul’s Place which provides 78,000 sq ft of Grade A office accommodation. The scheme also includes a new hotel and several retail and restaurant units. Existing office accommodation is occupied by financial service firms such as, Barclays, RBS and Coutts & Co, in addition to major corporations such as DLA Piper and the Department for Education & Skills.

MOOR MARKETDescribed as the ‘Borough Market’ of the North, this new development comprises a gym, cinema, 80,000 sq ft Primark and several restaurants.

HEART OF THE CITY (PHASE 2)Comprising a mixed development including retail, leisure, offices and residential up to 1.5 million sq ft.

ACERO BUILDING / SHEFFIELD DIGITAL CAMPUSThe new Acero Building provides 80,000 sq ft of Grade A, new office accommodation. The site is located directly next to the railway station.

MCLAREN & BOEING PRODUCTION FACILITIESA new technology centre and production facility as part of Sheffield’s Advanced Manufacturing Research Centre (AMRC) for McLaren and Boeing. The centre will be Boeing’s first European production facility.

ADVANCED MANUFACTURING AND INNOVATION DISTRICTA 2,000 acre centre of research-led, technology solutions, created by the Sheffield Universities and Rotherham Council.


OFFICE INVESTMENT MARKETTotal transactional volume in 2018 to date is £133.18m, representing the highest level of office investment in Sheffield for over 10 years and 74% above the 5 year average. Market volume is expected to continue to increase throughout the remainder of the year with several ongoing transactions including Hartshead Square (£41m) and Pennine Centre (£13m).

Prime office yields in Sheffield have remained at 6.00% over the previous 12 months. In comparison to other major northern regional cities, Sheffield continues to offer a significant discount, albeit competitive tension and limited investment supply offers the prospect of further yield compression.

Recent investment transactions include:

Date Address Tenant(s) Price NIY Cap Val (£ psf) Area (sq ft) Purchaser

July 2018 City Gate, St Marys Gate, Sheffield

Multi-let £17.825m 6.95% £140 psf 126,637 Longmead Capital LLP

May 2018 Acero, Sheffield Multi-let £26.6m n/a £333 psf 80,000 Britannia Invest A/S

May 2018 The Balance, Pinfold Street, Sheffield

Multi-let £15m 8.99% £132 psf 114,000 Kames Property Income

March 2018 St Pauls Place, Sheffield

Multi-let £23.75m 7.50% £304 psf 78,097 M&G Real Estate

June 2017 2 Cutlers Gate, Sheffield

Capital Plc £20.16m 4.90% £330 psf 61,000 UK CPT Ltd

Apr 2016 Aspect Court, Sheffield

Multi-let £6.30m 7.90% £110 psf 56,983 Regional REIT

OCCUPATIONAL MARKETRecorded office take-up in Sheffield totalled 400,000 sq ft in 2017, significantly ahead of the 10 year average (250,000 sq ft). 68% of take-up occurred in the city centre comprising predominantly Grade A accommodation.

With limited new developments entering the market, Grade A supply in Sheffield is at all-time low (see chart below). Supply has been further reduced through the removal of over 1m sq ft of secondary and tertiary office accommodation for residential and student conversion. This has applied further pressure on all grades of office supply in the City which struggles to cope with the diverse active requirements in the local market.

2017 saw prime rents reach a five year high of £24.50 psf, reflecting a 27% increase prior to the Global Financial Crisis. The growth of Grade A rents and the removal of supply for residential/student conversation has had resulted in further growth in the Grade B office market with good secondary accommodation achieving in region of £15.00 psf. With a restricted pipeline of new developments and no new schemes currently under construction, further growth is anticipated in the short term.

Completed in 2017, 3 St Paul’s Place and Acero Works (Digital Campus) have been the only speculative new build schemes to enter the Sheffield office market since 2010. These developments, in conjunction with the refurbishment of Steel City House, are a clear reaction to the supply demand dynamics and the heavy inward investment into the City itself.

2018

n Grade A Supply

2008

700000

600000

500000

400000

300000

200000

100000

0

20112014

20092012

20152017

20102013

2016

Jeremy Hodgson020 7543 6709

[email protected]

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

James Salmon020 7543 [email protected]

Tom Dales020 7543 [email protected]

www.allsop.co.uk

EPCThe property is rated D (94).

Full certification is available on the Allsop Marketing Data Room.

VATThe property has been elected for VAT.

It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC).

DATA ROOMFor access to the Allsop Marketing data Room

please use the following link: https://datarooms.allsop.co.uk/register/velocity

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 09.18

PROPOSAL

Offers invited in excess of £4,800,000 (Four Million, Eight Hundred Thousand

Pounds), subject to contract and exclusive of VAT. This reflects an attractive Net Initial Yield

of 7.75% and a low Capital Value of £138 psf, assuming standard purchasers costs.

CITY POINT VELOCITY VILLAGE SOLLY STREET SHEFFIELD, …approximately 61,500 between the University...

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Transcript of CITY POINT VELOCITY VILLAGE SOLLY STREET SHEFFIELD, …approximately 61,500 between the University...