PHOENIX HOUSE UNION STREET, OLDHAM OL1 1EP HIGH YIELDING GOVERNMENT LET OFFICE INVESTMENT

Transcription

1 HOENIX HOUSE UNION STREET, OLDHAM OL1 1E HIGH YIELDING GOVERNMENT LET OFFICE INVESTMENT

2 Investment summary Let to the Secretary of State for Communities and Local Government for a further 3 years Freehold The accommodation is well occupied by the tenant who have been in occupation since 1970 otential redevelopment for higher value use Located immediately adjacent to the new Central tram stop Current income of 286,163 per annum equating to a low rent of 4.79 per sq ft Central location within close proximity to The Spindles Shopping Centre and neighboring a Sainsbury s Superstore and TK Maxx retail outlet We are seeking offers in excess of 2,250,000 (Two Million, Two Hundred and Fifty Thousand ounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 12.02%, after allowing for standard purchasers costs of 5.80%, reflecting a low capital value of per sq ft. 2

3 Location Leeds M621 is located within Greater Manchester, being 8 miles north east of Manchester City centre. It has an urban population of approximately 104,000 and an estimated catchment population of 200,000. Around 20% of the UK s population live within an hour s drive of the town centre. The town is home to the University Campus, the campus for which is to the rear of hoenix House. The town has excellent road communications being situated at the southern end of the A627 (M) providing access to Junction 20 of the M62 Trans-ennine Motorway. The town also benefits from close proximity to the M60 Manchester Orbital Motorway, with Junction 22 being within 2 miles of the town centre. Local, regional and national rail networks link via Manchester to all parts of the country. The Metrolink has trams that run from Manchester City Centre regularly and provide connections in 25 minutes. At present there are four stops open in the town centre, including Central which is located immediately opposite hoenix House. A565 M58 Liverpool M53 A59 M6 M56 Wigan Bolton M62 A56 A646 M62 M66 A62 Manchester M60 A6 Huddersfield A628 M1 Sheffield The Bus Station has a number of services to Manchester, Rochdale, Ashton-under-Lyne and Middleton and other services across the ennines to Huddersfield in West Yorkshire. A550 A49 M6 A34 A536 A623 Situation A55 Chester A51 A54 A53 A515 A6 hoenix House is located in a prominent position on the corner of Union Street and Hobson Street in town centre. It is situated adjacent to a Sainsbury s superstore and TK Maxx retail outlet, within walking distance of The Spindles shopping centre and close to the University Campus and the new HQ for First Choice Homes. hoenix House is well positioned on the footfall thoroughfare between The Spindles Shopping Centre and the Sainsbury s Superstore. Egerton Street A627 Way Way Rochdale Road A671 St M ary s Way Middleton Road Way John Street Manchester StreetManchester Street A627 King Street A62 Spindles Shopping Centre King St (tram) Hobson Street Union Street Yorkshire Street Central (tram) Sainsbury s TK Maxx Emmot Way Way St Mary s Way Rhodes Bank 3

4 Description hoenix House comprises a detached office building configured with two wings over ground and seven upper floors with an entrance on Union Street and one on Hobson Street. At ground floor there is a public facing Jobcentre lus accessed off Hobson Street. The offices on each floor are arranged around the central core staircase and passenger lifts. There is also a services core to the rear of the property with passenger lifts, staircase and a fire escape tower to the southern elevation. Each floor benefits from male and female WC facilities and kitchen facilities. Site The property occupies a site of approximately 0.15 ha (0.36 acres). Metrolink The metrolink tram system has grown continuously since its introduction. It transports on average 55,000 passengers on a daily basis and the current network has 77 stops along 57 mies of track, serving 7 of the 10 boroughs of Greater Manchester. The specification includes: Double glazing Suspended ceilings Recessed lighting Carpeted throughout erimeter trunking Wall mounted radiators 4 x 10 person passenger lifts (in the main core and to the rear of the building) Bike store to the rear and stands to the front of the property arking to the front and rear of the property - 6 spaces The metrolink expansion through town centre opened in January 2014 with four brand new stops. Trams run every 12 minutes from onto Rochdale and into Manchester City centre. Deansgate- Castlefield St eter s Square CITY ZONE iccadilly Gardens Market Street ICCADILLY New Islington Abraham Moss Queens Road No trams call at Victoria Victoria Shudehill Holt Town Crumpsall Monsall Etihad Campus Velopark Central ark Clayton Hall Bowker Vale Newton Heath and Moston Edge Lane Heaton ark restwich Besses Radcliffe 216 o th Barn South 190 Failsworth Chadderton Westwood Cemetery Road Hollinwood Droylsden 369 Whitefield Freehold 200 Audenshaw Ashton Moss 100 BURY Central King Street Ashton West 195 Derker Newhey Mumps ASHTON- UNDER-LYNE Milnrow Kingsway Business ark Shaw and Crompton Newbold 217 Rochdale Railway Station ROCHDALE TOWN CENTRE 3 42 hoenix House (Government Offices) 44 GALWAY ST El Sub Sta 46 Tk Crown Copyright All rights reserved. Not to scale. 4

5 Accommodation The property has been measured in accordance with the RICS Code of Measuring ractice and benefits from the following NIA areas: Floor Area sq m Area sq ft Ground * ,136 First ,037 Second ,240 Third ,266 Fourth ,319 Fifth ,219 Sixth ,298 Seventh ,207 Total 5, ,721 * Reception 702 sq ft Jobcentre lus 4,193 sq ft Tenancy The property is let in its entirety to Secretary of State for Communities and Local Government on a full repairing and insuring lease for a term of 5.25 years from 9 November 2012, expiring on 1st April 2018, with just over 3 years unexpired. The current rent passing is 286,163 per annum equating to a low 4.79 per sq ft. Covenant The Secretary of State for Communities & Local Government provides an undoubted government covenant. 5

6 Tenure Freehold Office market commentary The office market in has seen a good level of activity over the last 12 months with an increase in occupational demand, particularly for office suites ranging from 2,000 to 5,000 sq ft. Similar to the trend within the North West there is a lack of good quality accommodation. The property is ideally placed with the prime office core orbiting around Union Street. A new office development totaling 35,000 sq ft on Union Street has recently completed which First Choice Homes now occupy. Other pertinent transactions include Metropolitan lace which has recently been refurbished and Brunswick Square which is occupied by a number of welfare to work providers such as A4E and Standguide. Rental levels generally lie between 5.00 and per sq ft depending on the size and specification of the accommodation. Energy performance The property has been awarded an Energy erformance Rating of C. A copy of the certificate is available on request. 6

7 VAT The property is not elected for VAT. roposal We are seeking offers in excess of 2,250,000 (Two Million, Two Hundred and Fifty Thousand ounds), subject to contract and exclusive of VAT, reflecting a net initial yield of 12.02%, after allowing for standard purchasers costs of 5.80%, reflecting a low capital value of per sq ft. Contacts For further information, or to arrange a viewing, please contact: Ben Roberts Nathan Ball broberts@lsh.co.uk nball@lsh.co.uk Abid Jaffry Nick Lloyd ajaffry@lsh.co.uk nlloyd@lsh.co.uk Lambert Smith Hampton 3 Hardman Street Spinningfields Manchester M3 3HF Subject to Contract and Exclusive of VAT Lambert Smith Hampton January 2015 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) rice or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. 7