Major City Centre Redevelopment Opportunity 29,249 sq ft (2,718 sq m) www.vickeryholman.com www.m7propsearch.co.uk St Andrew s Court St Andrew s Street, Plymouth, Devon, PL1 2AH
Vacant possession available Q1 2015 Potential to refurbish for a range of uses Current income of 105,583 per annum City centre in need of quality office space Approval for the conversion to residential including 15x1 bedroom flats and 18x2 bedroom flats Floor area 29,249 sq ft (2,718 sq m) net internal on six floors Prominent city centre location Plymouth is the largest city in the south west of England Long leasehold for 150 years from 25th December 1980 Price 1,800,000 (One Million Eight Hundred Thousand Pounds) STC Location Plymouth is the second largest city on the south coast of England and after Bristol, the largest in the south west with a resident population of 258,700 and a further 100,000 in the travel to work area. Plymouth nestles in an Area of Outstanding Natural Beauty with Dartmoor National Park to the north whilst the natural harbour of Plymouth Sound creates the southern border with the river Plym and Tamar on either side. The city went through a period of significant change in the last decade, with the scale of regeneration taking place second only to that carried out after the Second World War. The Vision of Plymouth, launched in 2003 and created under the lead of the Barcelona based architect David Mackay, gave a clear vision and framework. The most visible effects can be seen in the city centre with Drake Circus Shopping Centre, and the recent investment in the west end. With an ambitious growth agenda that will see its population increase to 300,000, Plymouth s Local Development Framework aims to transform the physical regeneration of the city into a thriving successful, attractive and overall substantial place for people to live and do business, whilst its Local Economic Strategy sets out a clear framework for the tranformation of its economy with a number of objectives that include:- 42,500 new jobs created by 2026 Increase in GVA from 90% to 100% of the national average 2016 Develop and strengthen the investor offer in Advanced Manufacturing, Business and Professional Services, Creative Economy, Marine/Maritime, Medical and Healthcare, and Tourism and Leisure Source- Plymouth - An Overview (September 2011) A significant growth factor within the city is the continued expansion of the Univeristy which is now classified as the fifth largest in the UK with over 30,000 students and a strong reputation for its research and development capabilities. The University houses Europe s largest marine institute with a dedicated world class marine building, benefiting from state of the art research facilities and new wave tank testing equipment. Transport The city boasts excellent road communications with both the A38 and A30 dual carriageways providing access to the national motorway network at Junction 31 of the M5 and Exeter. Plymouth has a mainline railway station which is located approximately 10 minute s walk from the property. Services run to London regularly with a journey time of just over three and a half hours, along with other services to the Midlands, the North, South Wales and Scotland. Plymouth is also home to Brittany Ferries who provide services to Roscoff in France and Santander in Spain. Exeter International Airport is easily accessible with an approximate 45 minute drive along the A38 Devon Expressway, with flights to major UK cities, Europe and North America. Bristol Airport is 110 miles away providing flights to wider destinations.
Description The property is comprised of a six storey office building with lower ground, ground and four upper floors. The building is arranged around a central core which provides access on both sides so that the floors can easily be split into two suites from 1,000 sq ft upwards. The entrance to the building is at ground floor level on the St Andrew s Street side which provides access into the main reception area, the lift and stairs providing access to all floors. There are 10 parking spaces in the lower ground floor car park. Tenancy Schedule Mark Tremain Suite Tenant Type Size (sq ft) Rent ( pa) Rent ( psf) Start Date Next Break Expiry Break Service Charge ( pa) Service Charge ( psf) Rateable Value ( ) Comments Part Lower Ground Floor Vacant - 2,192 - - - - - - - 20,000 Part Ground Floor Devon and Cornwall Police Original 2,087 21,758 10.43 29/08/06-28/08/16 11,281.20 5.41 18,500 Terms being negotiated to vacate in Q4 2014. Part Ground Floor Vacant - 2,324 - - - - - - - 22,000 First Floor Secretary of State For Communities and Local Goverment Original 6,294 67,300 10.69 25/12/08 24/12/14 24/12/18 34,001.60 5.40 53,000 Break exercised vacation due 24/12/14. Part Second Floor Tanners Restaurant Ltd Holding Over 920 12,345 13.42 19/10/07-18/10/12 4,977 5.41 8,700 Holding over. Vacating end of July. Part Second Floor Vacant - 4,956 - - - - - - - 43,000 Third Floor Vacant - 6,296 - - - - - - - 58,000 Fourth Floor Interactive Media Sales Ltd Original 4,180 4,180 1 24/02/14 23/02/15 23/02/16 22,578.50 5.40 41,000 Short term lease mutual break. Total 29,249 105,583 3.61 - - - 72,838 2.49 264,200
Office Market The Plymouth office market has had a tough time during the recession with rents falling as low as 8.50 per sq ft in the city centre. Tenants have demanded and got large incentives and flexible terms. However, 2013 saw a major improvement in demand in this sector which has reduced the available options, particularly for quality stock, with the lettings of Salt Quay House in Sutton Harbour and Studio 5/11 in Millbay completing etc. With new build developments requiring rents of 17 per sq ft to be viable there is a real opportunity for quality refurbishments in the city centre. There is a lack of good quality office space with excellent energy credentials on the market, the vast majority is tired, second hand space. The refurbishment of this property to create an energy efficient high quality office building would plug a gap in the market. In addition the flexibility of the space to provide whole floors, half floors or quarter floors would also make the property appeal to a large section of the market. The city centre has circa 540,000 sq ft of office stock. There is approximately 150,000 sq ft of office space currently available within the city centre and surrounds. Only a small proportion of this, 20,000 sq ft, is modern space, but even this is not that good quality. Over the past 12 months there have been requirements for Residential Market The residential market in Plymouth, like most of the south west, has seen an increase in activity over the past 18 months. The Help-to-Buy Scheme and availability of mortgages has meant that first time buyers are now returning to the market alongside buy to let investors. Therefore, the proposition to convert the building into one and two bedroom flats would appeal not only to first time buyers but also the investment where demand remains buoyant to lease to young professionals. over 430,000 sq ft of city centre office space. The majority of these Residential agents within the locaility have advised that two bedroom flats are currently achieving in the region of 160,000 requirements are in the 500 to 3,000 sq ft range with a handful of and one bedroom flats are achieving in the region of 125,000. Interested parties are advised to make their own enquiries in larger requirements in the 3,000 to 20,000 sq ft range. Occasionally this regard. there are requirements in excess of 20,000 sq ft. The student market is still particularly active with various examples being built and converted in the vicinity. There also does Studio 5/11 was refurbished around two years ago to provide not appear to be a let up in the requirements for student accommodation given the expansion plans for the University. modern commercial space on the ground floor with office space on the upper floors. The office space in this development is now fully let with headline rents in the region of 11.50 to 12 per sq ft. If St Andrew s Court is refurbished and comes to the market in two years time we would expect to be asking for 14 per sq ft with a view to achieving 12 to 14 per sq ft. Interested parties are advised to seek their own advice in this respect.
Refurbishment Opportunity Further Information Please contact: Joanne Harwood Mike Oldrieve E: jharwood@vickeryholman.com E: moldrieve@vickeryholman.com DD: 01752 234123 DD: 01752 273836 M: 07525 984443 M: 07747 842453 Bao Wang Vacant possession is available from Q1 2015. This provides an exceptional opportunity to undertake a refurbishment for a range of uses which could include offices, open market residential, student accommodation, retail, lesiure, pub, restaurants, hotel etc. Some initial costings have been undertaken by Vickery Holman and further information is available on request. From the initial appraisal work that has been undertaken refurbishment of the building on the upper floors to provide high quality office space with retail use on the ground floor would appear to be particularly feasable. This would create a leading environmentally friendly building with low running costs and outstanding environmental credentials close to the Barbican. Planning Prior approval has been granted under permitted development rights for the property to be converted from a B1 office use to C3 residential use with the formation of 33 flats. The Local Authority have indicated conversion of the lower floors to retail, leisure or restaurant type uses would be considered favourably. There will be no Community Infrastructure Levy (CIL) applicable. The decision letter and supporting information is available upoon request. Service Charge A service charge is levied to cover the maintenance of the common areas, concierge, cleaning. refuse collection and communal services. The service charge budget for 2014 is currently running at 5.40 per sq ft plus VAT. The tenants pay a fair proportion of the service charge. Full details available on request. VAT The property is elected for VAT and will be chargeable in respect of this sale. We believe it will qualify as a transfer of a business as a going concern (TOGC). EPC From G (154) to D (78) Information Pack An information pack containing various supporting documents is available on request. www.vickeryholman.com Proposal We are instructed to seek 1,800,000 (One Million Eight Hundred Thousand Pounds) subject to contract and exclusive of VAT for the Long hold interest.