prime city centre office investmentc1415082.r82.cf3.rackcdn.com/savc20412/savc20412-1.pdfprime city...
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Waterfront Hall
Law Society House
University of Ulster Cathedral Quarter
Obel Building
Titanic Quarter
Belfast City Airport
Odyssey Pavilion
City Hall
BT Tower
Victoria Square
City Airport
Central Train Station
Investment Summary
• Aprominentofficebuildingsituatedadjacenttothe RoyalCourtsofJustice.Nearbyoccupiersinclude, BritishTelecom,Allstate,Concentrix,Brewin Dolphin,andPriceWaterhouseCooperswiththe HiltonHotelandWaterfrontHallincloseproximity.
• Multi-letgradeAofficebuildingwithanetinternal areaof46,913sqft.
• 999yearLongLeaseholdInterestinpartbasement, ground,first,secondandpartthirdfloorfrom9th June2009.
• LawSocietyHouseislocatedonVictoriaStreetin thecentrallegaldistrictofBelfastandislocated nexttotheRoyalCourtsofJusticebuildings.
• Thetotalcurrentpassingrentis£492,906per annum.
• Strongoccupationaltenantlineupwith67.91% ofthegrossincomesecuredagainsta governmenttenant.
• Assetmanagementpotentialtorestructureboththe titleandtheoccupationalleases.
• Wehavebeeninstructedtoseekoffersin excessof£3,465,000 (Three Million, Four Hundred and Sixty Five Thousand Pounds).Apurchaseatthislevel,aftervacancy liabilities,reflectanattractive net initial yield of 12.47%,anequivalent yield of 14.63%anda reversionary yield of 16.82%excludingVAT andassumingfullpurchaserscostsat5.80%.
Strong tenant line up with over 65% of the income secured against a government tenant.
ODYSSEYARENA
EUROPATRAINSTATION
CENTRALTRAINSTATION
BELFAST - DUBLINRAIL CORRIDOR
M1 MOTORWAY
M2 MOTORWAY
M3 MOTORWAYVICTORIASQUARE
BELFASTCITY HALL
Derry
Belfast
Dublin
LAW SOCIETY HOUSE
Belfast City Centre
Permit ID: 130040 © Crown Copyright 2013
Location
LawSocietyHouseislocatedintheCityofBelfast,thecapitalofNorthernIreland.BelfastisthesecondlargestcityontheIslandofIrelandandliesapproximately70miles(113Km)south-eastofLondonderryandapproximately100miles(161Km)tothenorthofDublin,intheRepublicofIreland.
BelfastenjoysexcellenttransportinfrastructureandiswellconnectedtotherestofIrelandandtomainlandUK.GeorgeBestBelfastCityAirportislocatedapproximately4miles(6Km)fromthecitycentrewithBelfastInternationalAirportapproximately23miles(37Km)north-west.InadditionBelfasthasalargecommercialportthatisalsousedforpassengerferryserviceswithregularsailingstoScotland,EnglandandWales.
BelfasthasgoodroadcommunicationsbeingpositionedwithincloseproximitytotheM2linkingtheNorthandWestoftheProvinceandtheM1whichlinkswithDublinintheSouth.ThetwoprincipalrailwayservicesinthecitycentreincludeGreatVictoriaStreetandBelfastCentral,thelatterofwhichprovidesadirectlinkwithDublin.
Situation
LawSocietyHouseoccupiesaprominentpositiononVictoriaStreetrightintheheartofBelfast’slegaldistrict.SituatedadjacenttotheRoyalCourtsofJustice,nearbyoccupiersincludeBritishTelecom,Allstate,Concentrix,BrewinDolphinandPriceWaterhouseCoopers.
TheHiltonHotelandBelfastWaterfrontHall,a2,400seatconferenceandentertainmentcentre,arelocatedincloseproximity.InadditionanentrancetoNorthernIreland’spremiershoppingcentre,the400,000sqftVictoriaSquareShoppingCentreisalsolocatedonVictoriaStreet.
BelfastCentralTrainStationwhichprovidesdirectaccesstoDublinandLondonderryamongstmanyothermajorlocationswithinNorthernIrelandislocatedapproximately600metrestotheeastofthepropertyviaEastBridgeStreet.
Glasgow
Edinburgh
Newcastle
Middlesbrough
York
Leeds
Bolton
Liverpool
Manchester
Nottingham
BirminghamCambridge
London
BristolCardiff
Oxford
Reading
Luton
Ipswich
Hull
LawSocietyHousecomprisesafive-storeyofficewithretailaccommodationonthegroundfloorandbasementcarparking.Thepropertyisprimarilyservedbyaflatroofarrangementwithinsulatedbuildupwithsingleplymembraneroofcovering.
ExternalelevationsareformedinacombinationofPortugueseLimeStone,andaluminiumcurtainwallingsystemwithfacingbrickworktotherearelevation.Internally,ceilingsprimarilycompriseacombinationofasuspendedceilinggridwithlay-ingridmineraltilesandplasterboardceilinglinings.Wallscomprisea
combinationofplasteronhardandpartitionsstrappedandlinedinplasterboard.Flooringprimarilycompriseraisedaccessfloorsandconcretefloorslabs.
AbuildingsurveyandconditionreporthasbeenundertakenbytheWattsGroupPlcwhichisassignabletothepurchaserandisavailableinthesecuredocumentlibrary.
• Secretary of State for Communities and Local Government–Theleaseissignedandguaranteed bytheSecretaryofStateforCommunitiesand LocalGovernmentwhotradeasthePassport Office.Therearenoaccountsavailablefor governmenttenants.
• Royal & Sun Alliance Insurance PLC -ADun &Bradstreetcreditratingof5A1representinga minimumriskofbusinessfailure.
• RSA Northern Ireland Insurance Limited-A Dun&Bradstreetcreditratingof2A3.
Description
Tenant Covenants
Tenure Tenancy and Accommodation
A999yearlongleaseholdinterestfrom9thJune2009atapassingrentof£1perannumifdemandedwithoutreview.Thelongleaseholdinterestincludespartbasement,ground,first,secondandthirdfloors.
Thescheduleoftenancyandaccommodationislocatedontheoppositepage.
Unit Tenant Area (sq ft) Area (sq m) Rent Rent (psf) ERV ERV (psf) Lease Start Lease Expiry Rent Review Comments
CarParking TheSecretaryof N/A N/A £4,000 N/A £2,000 N/A 01/02/2010 31/01/2025 01/02/2015 StateforLocal Communities& Government
CarParking TheSecretaryof N/A N/A £4,000 N/A £2,000 N/A License StateforLocal Agreement Communities& Government
CarParking Royal&Sun N/A N/A £3,000 N/A £2,000 N/A 04/01/2012 31/12/2016 AllianceInsurance Plc
CarParking RSANorthern N/A N/A £10,800 N/A £8,000 N/A 10/12/2012 31/12/2016 IrelandInsurance Limited
CarParking Miscellaneous N/A N/A £7,200 N/A £6,000 N/A LicenseAgreement GroundFloor 4,714 419 £94,280 £20.00 Vacant MezzanineFloor 4,758 463 £23,790 £5.00
GroundFloor 4,665 429 £93,300 £20.00 TheSecretaryof StateforLocal £95,415 £12.19 01/02/2010 31/01/2025 01/02/2015 TenantBreak Communities& Optioninyear10 GovernmentMezzanineFloor 3,161 294 £15,805 £5.00
FirstFloor TheSecretaryof 11,506 1,081 £142,602 £12.39 £143,825 £12.50 01/02/2010 31/01/2025 01/02/2015 TenantBreak StateforLocal Optioninyear10 Communities& Government
SecondFloorA TheSecretaryof 7,160 673 £88,739 £12.41 £89,500 £12.50 01/02/2010 31/01/2025 01/02/2015 TenantBreak StateforLocal Optioninyear10 Communities& Government
SecondFloorB RSANorthern 4,346 408 £55,150 £12.57 £54,325 £12.50 10/12/2012 31/12/2016 IrelandInsurance Limited
ThirdFloorA Royal&Sun 6,576 616 £82,000 £12.47 £82,200 £12.50 04/01/2012 31/12/2016 3yearbreakwith AllianceInsurance £41Kpenalty Plc
ThirdFloorB LawSociety FREEHOLD ofNorthernIreland
FourthFloor LawSociety FREEHOLD ofNorthernIreland
FifthFloor LawSociety FREEHOLD ofNorthernIreland
Total £492,906 £617,025
Floor Plans
AmeasuredareassurveyhasbeenundertakenbyPlowmanCravenLtdwhichisassignabletothepurchaserandisavailableinthesecuredocumentlibrary.
Vacant
TheSecretaryofStateforLocalCommunitites&Government
RSANorthernIrelandInsuranceLtd
Royal&SunAllianceInsurancePlc
GROUND FLOOR
FIRST FLOOR
MEZZANINE
SECOND FLOOR
THIRD FLOOR
FOURTH FLOOR - FREEHOLD
FIFTH FLOOR - FREEHOLD
PART THIRD FLOOR - FREEHOLD
Comparable Rental Evidence
ERV
Investment Comparables
ThereiscurrentlyadearthofgoodqualitygradeAofficespaceavailableinBelfastCityCentre.Thisishavingapositiveimpactonrentallevelsbeingachieved.Inrelationtothesubjectproperty,themostrecentdealtoRoyal&SunAlliance(NI)Insuranceat
£55,150perannumreflects£12.57persqft.
Onthebasisofthecomparableevidenceandourrecentmarketintelligence,weareoftheopinionthebuildingiscurrentlyreversionary.Webelievethe
estimatedrentalvalueofthepropertyisintheregionof£617,025perannum,equatingto£20persqft(£5.00mezzanine)onthegroundfloorretailspaceand£12.50persqftontheofficeaccommodation.
Property Price Yield Date Comments
2,KillymealHouse,TheGasworks,Belfast £3.1million 8.40% Mar-12 Size-26,900sqft NetRent-£275,321p.a. RentReview-15Yearlease,5yearlyupwardonlyrent review.Leasecommencement-27/01/2009
12HeronView,AirportRoadWest,Sydenham £1.35million 8.63% Jul-12 Size-11,955BusinessPark,Belfast,BT39LN NetRent-£123,625p.a. RentReview-RPIlinkedrentalgrowth leasecommencement-09/05/2008
Property Tenants Size Rent Rent psf Lease Start Lease Expiry Rent Review Comments
LawSocietyHouse Royal&Sun 4,837 £55,150 £12.57 10/12/2012 31/12/2016 Alliance(NI) Insurance
TheObel,Donegall AllenOvery 44,753 £537,036 £12.00 14/07/2011 14/07/2026 14/07/2016 T.B.O.Quay,Belfast inyear5and10
Gateway,Titanic CitiGroup 96,779 £1,289,227 £13.32 01/07/2009 30/06/2024 01/07/2014 T.B.O.inyearQuarter,Belfast 8&10
JamesHouse, Departmentof 111,488 £1,572,676 £14.10 01/11/2004 31/10/2019 01/11/2014TheGasworks, FinanceandBelfast Personnel
Planningconsentwasgranted(Z/2004/2354/F)inMarch2006toreplacea3storyofficebuildingwithamodern5storybuildingtoincludeabasementcarpark.
TheLawSocietyownthelandandoccupypartofthebuildingwiththeremainingspaceconsistingofgroundfloorretailandupperflooroffices.
VAT
ThepropertyhasbeenelectedforVATpurposesandthereforeitisexpectedthattheinvestmentsalewillbetreatedasaTransferofaGoingConcern(TOGC).
Proposal
Wehavebeeninstructedtoseekoffersinexcessof£3,465,000 (Three Million, Four Hundred and Sixty Five Thousand Pounds). Apurchaseatthislevel,aftervacancyliabilities,reflectanattractive net initial yield of 12.47%,anequivalent yield of 14.63%andareversionary yield of 16.82%excludingVATandassumingfullpurchaserscostsat5.80%.
Planning EPC
1
26
52
78
104
130
156
182 208 234
260
286
312
338
364
Northern Ireland
A+A 0-25
B 26-50
C 51-75
D 76-100
E 101-125
F 126-150
GOver 150
This is how energy efficientthe building is.66
Net zero CO emissions2
More energy efficient
Less energy efficient
62141
Buildings similar to this one could have ratings as follows:
If newly built
If typical of theexisting stock
Energy Performance CertificateNon-Domestic Building
Energy Performance Asset Rating
Technical information Benchmarks
Certificate Reference Number:0432-0031-7360-8929-3096
LAW SOCIETY HOUSE106 Victoria StreetBELFASTBT1 3JZ
Main heating fuel: Natural GasBuilding environment: Air ConditioningTotal useful floor area (m ): 2 6952Building complexity (NOS level): 4
This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Department's website www.epb.dfpni.gov.uk.
00
0 21
0
S K - 5 0 5 3 0 1 - 3 1 1 7 0 0
6 6 - 0 4 3 2 - 0 0 3 1 - 7 3 6 0 - 8 9 2 9 - 3 0 9 6 - S K 5 0 5 3 0 1 3 1 1 7 0 0 - D C L G x E P C g e n 2 0 0 8
This certificate has been produced by E P C g e n, a software module developed by B R E for C L G under contract with F M. The author of the program is J o s e O r t i z (o r t i z j @ b r e . c o . u k ). Some security features proves the authenticity of this document.
Further Information Secure Document Library
Ifyourequireaccesstothesecuredocumentlibraryonlineorforfurtherinformationpleasecontact;
Ben Turtle Director
1stFloor,LesleyStudios32-36MayStreet,BelfastBT14NZ
Tel:02890268006Email:[email protected]
Savills(NI)LimitedforthemselvesandfortheVendorsorLessorsofthepropertywhoseagentstheyaregivenoticethat;i)theseparticularsaregivenwithoutresponsibilityofSavills(NI)LimitedortheVendorsorLessorsasageneraloutlineonly,fortheguidanceofprospectivepurchasersortenants,anddonotconstitutethewholeoranypartofanofferorcontract;ii)Savills(NI)Limitedcannotguaranteetheaccuracyofanydescription,dimensions,referencestocondition,necessarypermissionsforuseandoccupationandotherdetailscontainedhereinandanyprospectivepurchasersortenantsshouldnotrelyonthemasstatementsorrepresentationsoffactbutmustsatisfythemselvesbyinspectionorotherwiseastotheaccuracyofeachofthem;iii)noemployeeofSavills(NI)Limitedhasanyauthoritytomakeorgiveanyrepresentationorwarrantyorenterintoanycontractwhatsoeverinrelationtotheproperty;iv)VATmaybepayableonthepurchasepriceand/orrent,allfiguresarequotedexclusiveofVAT,intendingpurchasersorlesseesmustsatisfythemselvesastotheapplicableVATposition,ifnecessarybytakingappropriateprofessionaladvice;v)Savills(NI)Limitedwillnotbeliable,innegligenceorotherwise,foranylossarisingfromtheuseoftheseparticulars.June2013.
Dervla Daly Surveyor
1stFloor,LesleyStudios32-36MayStreet,BelfastBT14NZ
Tel:02890268009Email:[email protected]
www.savills.com/lawsocietyhouse