NU HOUSE
High Yielding Retail & Office Investment NU House, High Street, Huddersfield HD1 2LR
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
1
NU HOUSE GLASGOW
INVESTMENT SUMMARY • Refurbished Mixed-Use Retail & Office Investment • Prominent location on High Street & Market Street within Huddersfield’s City Centre; • 37,340 Sq Ft (3,469 Sq m) NIA • Virtual Freehold - lease expiring 3909 • Leased to 10 tenants • Total Net Rent of £312,331 per annum • 3.8 years WAULT (2.8 years WAULT to breaks) • Asset management opportunities to increase the income • Offers in excess of £2,460,000 • Net Initial Yield – 12.00% • £66 Capital Value per sq ft
A 1
EDINBURGH
4 M7
A7 02
M8
A1
8 A6
M A74
NEWCASTLE SUNDERLAND
LOCATION CARLISLE M6
A1(M)
MIDDLESBROUGH
M6
A1(M)
Huddersfield is a large market town, the 11th largest town in the UK. Although predominantly a manufacturing town, the largest employer is The University of Huddersfield with some 21,000 students. Huddersfield is situated approximately 21 miles (34 kilometres) south west of Leeds, 31 miles (50 kilometres) north west of Sheffield and 25 miles (40 kilometres) north east of Manchester. Junction 23 of the M62 is located approximately 2 miles (3 kilometres) west of the town centre, whilst Junction 34 of the M1 motorway is approximately 5 miles (8 kilometres) to the east of the town. Huddersfield enjoys frequent rail services to Leeds, Sheffield, Manchester and to London (via Wakefield) with approximate journey times of 19 minutes, 1 hour 15 minutes, 30 minutes and 2 hours and 50 minutes, respectively.
DEMOGRAPHICS WAKEFIELD
HUDDERSFIELD
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
Huddersfield has a primary catchment population of 313,000 (PMA, 2014) and a total population of 1,063,420 living within a 13 mile (20 kilometres) radius. The average retail expenditure per capita in Huddersfield is higher than the national average (PMA, 2014) and there is a current need for an additional 46,000 households in the area by 2033 reflecting the town’s future growth.
2
NU HOUSE SITUATION
A6 41
The Property has excellent prominence within the town centre benefiting from frontage to both the High Street and Market Street. Opposite the Property lies Huddersfield Magistrates Court, situated to the south of Market Street. Market Street also provides direct access to Huddersfield’s ring road, the A62 located approximately 110 yards (100 metres) from NU House. Situated within the main retail and business district of the town the Property is within easy walking distance of the central train station, Kirklees College and the University of Huddersfield.
A6
F
OR D
S TR
EE T
LEE D
ST
S R O AD
HGATE
41
N OR T
OX
A62
RAILWAY ST
LA
ET PL M A RK
T
RE E
LA NE
T ST RK E
TL AND S T ZE
OR I A V IC T D ST
29
WA K
EF
IE L
D
RD
University
UE
ALFRE
E NS GA T
ST
P EE L
REE T
AL BIO N ST
2
A
62
Q
A6
A6
E
A6
16
A
P
P
P
EE T
MA
K IN G S T R
A6 2
CHANC ERY
CASTLEGATE
ATE Kingsgate Shopping Centre
STREE T
S HIG H TREE T
Magistrates Court
62
HG
TE K I R KGA QUEEN
P
ST
RE E T
T
DU N DA S
’S ST
UT
E TER
WESTGATE
NU HOUSE
Bus Station
RL A
A
AL D C AN
MB E
ST P
TREE
STATION ST
P
TH U
I AM S
40
NO R
T ND S
SO
9
Railway Station
W I LL
62 A6
P J OH N
A
EE T
62
ST R
BROA
L IA M
41
WI L FITZ
A6
V IA
DU
CT
P
DESCRIPTION The Property comprises 5 retail units on ground floor with 4 storeys of offices to the upper floors. The office component benefits from a prominent entrance/reception situated at the corner of the Property at the High Street/Market Street intersection. 22 Car spaces are located to the rear of the property, via a secure access off Market Street, providing a ratio of 1:1,400 sq ft.
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
3
NU HOUSE SPECIFICATION
ACCOMMODATION
• Newly refurbished • Slim-line 3-compartment perimeter trunking • Integrated LG7 lighting with energy efficient controls • Ceiling mounted comfort cooling • Solar reflective window blinds • 8 person passenger lift • Male and female W/C’s on alternate half landings • Disabled W/C on the 2nd floor
The property comprises a total Net Internal Area of 37,340 sq ft which includes 6,520 sq ft of retail space and 30,820 sq ft of offices.
Market Street
FLOOR/UNIT
USER
18 – 20 High Street 22 High Street
NIA sq m
NIA sq ft
ITZA
Retail
197.32
2,124
803
Retail
48.12
518
518
24 High Street (GF & 1st Floor)
Retail/ Offices
429.96
4,628
1,518
43 Market Street
Retail
93.46
1,006
737
Retail/ Offices
220.92
2,378
1,354
989.78
10,654
4,930
45 & 47 Market Street (GF & 1st Floor) SUB TOTAL
High Street
Typical office floor plan
AREAS
Part 1st Floor
Office
169.83
1,828.00
2nd Floor
Office
741.03
7,975
3rd Floor
Office
715.94
7,705
4th Floor
Office
769.04
8,278
5th Floor
Office
83.61
900
SUB TOTAL
2,479.19
26,686
TOTAL
3,469.21
37,340
4,930
The property occupies a site of approximately 0.38 acres (0.15 ha).
TENURE The property is held Long Leasehold from 1 May 1909 expiring 30 April 3909 at a ground rent of £14 per annum.
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
4
NU HOUSE
TENANCIES The property is let to 10 tenants on 11 occupational Leases, as per the tenancy schedule below.
FLOOR
TENANT
LEASE DATES
NET RENT
NIA (SQ FT)
ITZA (SQ FT)
START
EXPIRY
BREAK
(£ PA)
(£ PSF)
1954 ACT
2,124
803
14/06/2007
13/06/2017
-
25,000.00
31.13
Outside
518
518
07/06/2012
06/06/2022
07/06/2017
16,000.00
30.89
Inside
18 – 20 High Street
Jark Plc
22 High Street
Shabana Siddique*
24 High Street (includes 1st floor offices)
Calderdale & Kirklees Careers Services Ltd
4,628
1,518
01/04/2000
31/03/2015
-
47,125.00
31.04
Inside
43 Market Street
Caffe Venecia Ltd*
1,006
737
24/09/2013
23/09/2023
24/09/2016
9,750.00
13.23
Outside
45 & 47 Market Street (includes 1st floor offices)
Lloyds Pharmacy Ltd
2,378
1,354
01/01/2005
31/12/2014
-
44,000.00
32.50
Inside
Part 1st Floor
Brantwood Financial Planning Ltd
1,128
-
28/03/2012
27/03/2022
28/03/2017
9,000.00
7.98
Inside
Part 1st Floor
Ingeus Uk Limited
700
-
01/01/2015
13/09/2016
31/12/2015
7,606.00
10.87
Outside
Part 2nd Floor
Interserve
3,300
-
20/07/2011
19/07/2017
20/10/2015
25,680.00
7.78
Outside
Part 2nd Floor
Ingeus
4,675
-
14/09/2011
30/09/2018
30/09/2017
39,400.00
8.43
Outside
Part 3rd Floor
Optical Express
1,686
-
17/05/2013
16/05/2018
-
13,760.00
8.16
Outside
Part 3rd Floor
Vacant
6,019
-
-
-
-
-
-
4th & 5th Floor
AHR Architects Ltd
9,178
-
04/05/2012 03/05/2022
-
75,000.00
8.17
Inside
-
01/08/1960
-
£10
-
Inside
Substation
Northern Powergrid (Yorkshire) plc 37,340
31/07/2020
-
£312,331
The above was correct at the time of marketing. * Shabana Siddique lease is subject to stepped rent reviews rising to £20,000 pa on 07/06/2020 * Caffe Venecia Ltd lease is subject to stepped rent reviews rising to £15,000 pa on 24/09/2017
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
5
NU HOUSE
ASSET MANAGEMENT The majority of Tenants at the Property have indicated their intention to remain at the Property presenting the opportunity to re-gear and extend Leases. The retail component is fully leased with approximately 17% of the offices currently vacant. Longterm development opportunities include conversion to student accommodation or residential, subject to planning. The substation on site is subject to a Lease which expires in 6 years’ time. Vacancy rates for retail currently stand at approximately 4.1%, a decrease of 38.6% since 2013 reflecting the economic growth of the town. With low vacancy rates the prospect of future rental growth is extremely good.
NU House, High Street, Huddersfield - High Yielding Retail & Office Investment
6
NU HOUSE
VAT The property is elected for VAT and it is envisaged that the sale will be structured as a TOGC.
PROPOSAL We are instructed to seek offers in excess of £2,460,000 (two million four hundred and sixty thousand pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 12.00%, after deducting usual purchaser’s costs of 5.80%. The Capital Value equates to £66 psf.
CONTACT For further information or to arrange an inspection, please contact:
Jed Wolfe 0113 237 6658
[email protected] James Parkinson 0113 237 6655
[email protected] Richard Talbot-Williams 0207 338 4244
[email protected] MISREPRESENTATION ACT: BNP Paribas Real Estate for themselves and for the vendors or lessors of this property, whose agents they are give notice that: a) all particulars are set out as general outline only for the guidance of intending purchasers or lessees, and do not comprise part of an offer or contract: b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believe to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. c) no person in the employment of BNP Paribas Real Estate has any authority to make any representation of warranty whatsoever in relation to this property. Design and Production DS.EMOTION.COM MAR 2014. 289
7