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BT28 1TS

INVESTMENT, ASSET MANAGEMENT AND DEVELOPMENT OPPORTUNITY

On the instructions of BDO, Northern Ireland acting as Administrators of Valto Limited

INVESTMENT SUMMARY –

Lisburn is the 3rd largest city in Northern Ireland



Lisburn Square is situated in the city centre and is connected to the main retail pitch, Bow Street, via Haslems Lane



The property comprises an attractive piazza style, mixed use courtyard scheme, constructed in c. 2001



Provides retail and office units with residential on the upper floors. (sold off on long leases)



Underground car park providing approximately 210 parking spaces



The scheme extends to approximately 90,434sq ft (8,401 sq m)



Tenants include Argos, Next, JD Wetherspoons and Subway



Opportunity to reposition the scheme

– Targeting leisure, food and beverage style operators (subject to planning) – Considerably increase net rental income through active asset management

Opportunity to acquire a city centre mixed use investment with asset management and development potential.



– Redevelop vacant first floor retail areas into residential

– The scheme currently produces a gross income of £641,740 per annum, exclusive and a net income after service charge and vacant rates shortfalls of £299,044 per annum, exclusive

Lisburn Square, Lisburn, Co Antrim BT28 1TS

INVESTMENT SUMMARY – We are instructed to seek offers in excess of £2,250,000 exclusive of VAT for our client’s

freehold and long leasehold interests.

– A purchase at this level would reflect

an attractive Net Initial Yield after



service charge and rates shortfalls of



12.56% (after allowing for purchasers costs



of 5.8%) and an attractive low capital



value of c.£25 psf.

– We understand that following the

implementation of the Rates Revaluation



in April 2015, the NIY may improve further.

LOCATION Lisburn is one of 4 cities in Northern Ireland and the 3rd largest city in the Province. The Lisburn urban area has an estimated resident population of 121,990 persons (NISRA 2013). Lisburn has excellent road connections, being located at Junction 6 of the M1 motorway, 8 miles west of Belfast. The city also connects directly to the A1, which gives ease of access to Newry and Dublin. Lisburn also benefits from good rail links, being situated on the Belfast to Dublin rail line. Belfast International Airport is located some 16 miles to the north.

3 8 121,990 RD

LARGEST CITY IN THE PROVINCE

MILES WEST OF BELFAST CITY CENTRE

PERSONS RESIDENTIAL POPULATION (NISRA 2013)

SITUATION Lisburn Square is positioned in Lisburn city centre, adjacent to the Bus Station and is connected to the main retail pitch, Bow Street, via Haslems Lane. The dominant retail scheme in Lisburn is Bow Street Mall, located at the western end of Bow Street.

Lisburn Square is situated in the City Centre and has pedestrian access from Bow Street Via Haslems Lane. For indicative purposes only

DESCRIPTION Lisburn Square is an attractive piazza style, courtyard designed scheme, constructed in 2001 The scheme provides 29 no. commercial units with 2 storeys of residential units which have been sold off on long leases. There are also 2 restaurant units in a conservatory style building in the centre of the Square in addition to 5 office suites located above the retail units. The commercial element of the scheme (those areas not sold off on long leases) extends to a NIA of approximately 90,434 sq ft (8,401 sq m). A number of retail units have mezzanine levels which would be considered surplus to most retailers’ needs. There is scope to convert these areas into residential use subject to obtaining necessary consents. The entire scheme is serviced by an underground car park which

Lisburn Square is an attractive piazza style designed scheme.

provides approximately 210 parking spaces with pedestrian access from the centre of the Square and vehicular access from Market Place. 40 car parking spaces are demised to the residential units. It is considered one of the city’s centre main car parks. Lisburn Square also hosts Lisburn’s weekly Tuesday Market.

Lisburn Square, Lisburn, Co Antrim BT28 1TS

RETAILING IN LISBURN Lisburn Square is connected to the main retail pitch, Bow Street, via Haslems Lane. Bow Street is the traditional retailing pitch in the city, where occupiers include Tesco, Boots, Café Nero, Vodafone, O2 and Superdrug. Bow Street Mall is the dominant shopping centre in the city, comprising some 70 stores and providing 1,000 parking spaces. Tenants include Dunnes, Primark, Poundland and New Look. The strong retailing provision in Lisburn has prevented retail spend leakage to other competing centres. Sprucefield Shopping Centre and Sprucefield Park are two large retail parks located at Junction 7 of the M1 Motorway. Tenants include Marks & Spencer, Sainsburys, PC World and B&Q.

TENANCY SCHEDULE LANDLORDS UNIT

TENANT

AREA GF SQ FT

AREA FF SQFT

AREA 2F SQFT

TOTAL SQFT

RENT

S/CHGE

TERM

START DATE

END DATE

NEXT REVIEW

BREAK OPTION

NAV (£)

ANNUAL RATES INSURANCE PAYABLE (£)

TOTAL LIABILITY

NOI

01

J D Wetherspoon

2,760

3,530

3,530

9,820

£112,000

£24,690

35

01/11/01

01/11/36

01/11/16

01/11/21

£71,000

£38,538

£3,565

£-

£112,000

02

David Doyle

470

-

-

470

£6,000

£1,102

5

01/02/14

31/01/19

£20,350

£11,045

£142

£-

£6,000

03

Easycigs Ltd

435

-

-

435

£7,000

£1,037

3

01/07/13

31/12/14

£20,350

£11,045

£134

£-

£7,000

04

Subway Realty Ltd

796

-

-

796

£30,000

£1,217

15

01/11/01

01/11/16

£14,500

£7,870

£157

£-

£30,000

05

Vacant

2,335

1,576

-

3,911

£-

£3,656

£32,725

£17,763

£472

£3,656

£8,881

£472

£13,010

-£13,010

06

Vacant

1,685

-

1,685

£-

£4,206

£31,800

£17,261

£543

£4,206

£8,630

£543

£13,380

-£13,380

07

Vacant

1,440

868

-

2,308

£-

£5,306

£35,400

£19,215

£685

£5,306

£9,607

£685

£15,599

-£15,599

08

Vacant

1,615

870

-

2,485

£-

£5,330

£30,750

£16,691

£688

£5,330

£8,345

£688

£14,364

-£14,364

09

D Campbell

1,390

755

-

2,145

£-

£5,124

£44,850

£24,344

£661

10

Vacant

2,120

1,240

-

3,360

£-

£7,566

£37,500

£20,355

£977

£7,566

£10,177

11

Vacant

1,786

1,108

-

2,894

£-

£6,423

£27,750

£15,062

£829

£6,423

12

Vacant

1,200

918

-

2,118

£-

£4,459

£34,500

£18,726

£575

£4,459

13

Vacant

1,385

935

-

2,320

£-

£4,952

£35,000

£18,998

£639

14

Vacant

1,370

799

-

2,169

£-

£5,208

£18,998

£672

15

Argos Ltd

6,206

6,129

-

12,335

£118,250

£26,825

15

01/11/01

£87,500

£47,495

16

Lisburn City Council

1,250

-

-

1,250

£12,500

£2,989

20

01/02/02 31/01/02

£23,200

17

Peter Boyle/Argento

196

-

-

196

£6,500

£466

15

01/11/01

31/10/16

18

Peter Boyle/Argento

293

-

-

293

£7,500

£695

15

19

Higginson / Café Square

1,098

-

-

1,098

£12,000

£2,778

20

NEXT

5,465

5,795

-

11,260

£95,000

£23,379

21

Vacant

1,365

710

-

2,075

£-

22

Vacant

1,595

1,070

-

2,665

23

Vacant

1,600

1,075

-

2,675

24

Vacant

1,445

842

-

25

Vacant

1,714

117

26

N Scott / Post Office

2,178

27

Vacant

28 29 KIOSK

£-

£18,720

-£18,720

£7,531

£829

£14,783

-£14,783

£9,363

£575

£14,399

-£14,399

£4,952

£9,499

£639

£15,090

-£15,090

£5,208

£9,499

£672

£15,371

-£5,880

£3,464

£-

£118,250

£12,592

£386

£-

£12,500

£4,300

£2,334

£60

£-

£6,500

01/02/02 31/01/17

£6,475.

£3,514

£89

£-

£7,500

5

01/02/14

30/09/19

£21,100

£11,453

£358

£-

£12,000

15

01/11/01

31/10/16

£66,950

£36,340

£3,019

£-

£95,000

£4,672

£31,850

£17,288

£603

£4,672

£8,644

£603

£13,920

-£13,920

£-

£5,767

£65,600

£35,607

£744

£5,767

£17,803

£744

£24,316

-£24,316

£-

£5,899

£-

£761

£5,896

£-

£761

£6,658

-£6,658

2,287

£-

£5,456

£35,500

£19,269

£704

£5,456

£9,634

£704

£15,796

-£15,796

-

1,831

£-

£6,769

£38,600

£20,952

£874

£6,769

£10,476

£874

£18,120

-£18,120

-

-

2,178

£17,500

£5,021

£38,900

£21,114

£648

659

-

-

659

£-

£1,614

£11,000

£5,970

£208

£1,614

£2,985

Vacant

670

-

-

670

£-

£1,616

£6,079

£208

£1,616

£3,039

Axa Insurance

380

-

-

380

£15,000

£927

£1,546

£119

Vacant

-

-

-

£-

ATM

Cardtronics

-

-

-

£2,500

£319

5

06/04/11 05/04/16

OFFICE 01

Youth Justice Agency

1,976

-

-

1,976

£16,000

£4,488

5

01/12/11

30/11/16

OFFICE 02

Oasis Dentist

2,114

-

-

2,114

£20,000

£4,801

15

17/05/10

16/05/25

OFFICE 03

DHSSPS

1,976

-

-

1,976

£15,400

£4,488

10

OFFICE 04

First Sec of State

2,205

-

-

2,205

£16,850

£5,008

10

3,395

-

-

3,395

£-

£6,890

5

01/11/10

01/06/12

01/09/15

LIABILITY INS

£977

5

02/12/14

LIABILITY RATES

£-

LISB SUITE Vacant

9MTHS

LIABILITY SC

31/10/16 01/02/17

31/10/15

31/05/17

01/06/15

£2,850

£-

£17,500

£208

£4,808

-£4,808

£208

£1,825

-£1,825

£-

£15,000

£-

£-

£-

£-

£-

£-

£-

£2,500

30/11/14

£15,400

£8,359

£610

£-

£16,000

17/05/15

£15,700

£8,521

£652

£-

£20,000

01/02/06 31/01/16

£15,400

£8,359

£610

£-

£-

£15,400

27/10/06 26/10/16

£16,100

£8,739

£680

£-

£-

£16,850

£24,900

£13,515

£1,048

£14,6966

-£14,696

17/05/15

£6,890

£6,757

£1,048

A

Bow House

£5,802

£-

£-

£-

£-

B

B & M Retail

£1,211

£-

£-

£-

£-

C

Boots Chemist

£2,506

£-

£-

£-

£-

D

Lochinver

£5,982

£-

£-

£-

£-

£97,219

£-

£97,219

£22,027

£5,583

£-

£929

£98,148

£4,926

£-

£1,055

£6,638

£-

£140,876

£13,222

£342,696

£299,044

Car Park Income 2014

£120,175

£97,219

£-

Market

£11,565

£5,583

£-

£46,023

£-

£365,487

£544,971

Apartments TOTAL

NOTES:

58,567

28,337

3,530

90,434

641,740

UNIT 01: External seating licence from 28/04/2005 - 01/11/2036 UNIT 02: Rent increase to £7,000 PA 01/02/2017 UNIT 03: Tenant overholding UNIT 09: Service charge/insurance/rates only

UNIT 19: Rent increase - year 2 £13,500, year 3-5 £15,000 UNIT 20: Option to determine further information upon request UNIT 22: NAV/Rates figures for unit 22/23 combined UNIT A-D: Not part of sale. Contribute to the service charge only.

£1,055

£27,655

£188,596

UNIT 26: OFFICE 02:

Variation agreed to reduce rent to £10K from 01/04/2014 increasing to £12500 once rates reduction implemented Heads of terms adjust for a new 5 year lease of £10,000 pa exec. 3 months rent free.

We have been advised of the areas outlined in the schedule. All areas being approximate.

INCOME ANALYSIS The scheme currently produces a gross rental of £641,740 per annum. After allowing for landlord’s shortfalls on service charge and rates, the scheme produces a net operating income of £299,044 per annum. The current landlord shortfall is therefore £342,696 per annum.

SERVICE CHARGE & MANAGEMENT The service charge budget for the YE October 2015 is c.£365,000. The service charge is based on a weighted floor area and equates to approximately £3.53 per sq ft (excluding residential element). Units 41A – 73 Bow Street pay into the service charge in respect to shared access and service yards. Further service charge and management information is contained within the data room.

RATES The tenants at Lisburn Square are liable for their own rates however, landlords in NI are liable for rates on vacant properties after a three month vacancy period. The rate levied for vacant properties is at 50% discount to the payable rate. Based on the most recent Rates Revaluation, due for implementation in April 2015, we understand the NAV on the scheme will be reduced in the region of 50%. We believe this will be significant in attracting future new occupiers and mitigating landlord’s liabilities to rates shortfalls. Prospective purchasers are strongly advised to make their own enquiries.

Lisburn Square, Lisburn, Co Antrim BT28 1TS

ASSET MANAGEMENT POTENTIAL We have identified the following asset management initiatives by way of improving net operating income and repositioning the centre:

Existing Apartments r.w.p.

r.w.p.

existing refuge space re-located

REFUGE SPACE

store Sink

Hall

Cloaks

Bathroom

Cloaks Hall

store room

Additional opportunity to create residential units through the refurbishment of existing first floor retail space (subject to planning). Further information available in the dataroom.



Develop close links with Lisburn City Council to open various marketing initiatives in order to further generate income.

En-suite

Cl

Living Room

F.F. D.W.

lobby

Sink

En-suite

Cl

Lift C8

Cl

Master Bedroom Living Room

Living Room

r.w.p. r.w.p.

New General Store

Kitchen

Master Bedroom

Master Bedroom

Living Room

Bathroom

Hall

Kitchen

Kitchen En-suite

store room Sink

Sink

En-suite

Cloaks

Bathroom

Hall

staircase E8 200mm dia. r.w.p.



store room

Sink

Master Bedroom

Cloaks

Bathroom

Hall

Kitchen

Master Bedroom Living Room

store room

Bathroom

En-suite

Reposition scheme to provide a vibrant leisure focused offer targeting food and beverage operators and gym providers (Subject to planning).

F.F.

F.F.

Cloaks Gas Meter Room

r.w.p.

D.W.

D.W.

D.W.

F.F.

Let vacant units even on a short term basis where possible to mitigate void costs and increase NOI. The anticipated reduction of rates in April 2015 should improve letability of vacant units and help to increase retailer demand.

F.F.

r.w.p.

Kitchen



r.w.p.

r.w.p.

D.W.



Proposed Residential Conversion of Surplus 1st Floor Ancillary Space

r.w.p.

r.w.p.

r.w.p.

r.w.p.

New Apartment 1

New Apartment 2

New Apartment 3

New Apartment 4

New Apartment 5

Existing Apartment

For indicative purposes only, Not to scale



Lisburn Square, Lisburn, Co Antrim BT28 1TS

EPCS Full Energy Performance Certificates are available within the Dataroom.

UNIT

TENANT

EPC

UNIT

TENANT

EPC

01

J D Wetherspoon

TBC

23

Vacant

TBC

02

David Doyle

TBC

24

Vacant

C57

03

Easycigs Ltd

C75

25

Vacant

C63

04

Subway Realty Ltd

TBC

26

N Scott / Post Office

TBC

05

Vacant

TBC

27

Vacant

D100

06

Vacant

C64

28

Vacant

TBC

07

Vacant

G193

29

Axa Insurance

TBC

08

Vacant

D82

KIOSK

Vacant

TBC

09

D Campbell

C75

ATM

Cardtronics

N/A

10

Vacant

TBC

OFFICE 1

Youth Justice Agency

B34

11

Vacant

F135

OFFICE 2

Oasis Dentist

B38

12

Vacant

F132

OFFICE 3

DHSSPS

TBC

13

Vacant

D76

OFFICE 4

First Sec of State

TBC

14

Vacant

C60

LISB SUITE

Vacant

C63

15

Argos Ltd

TBC

16

Lisburn City Council

TBC

17

Peter Boyle/Argento

TBC

18

Peter Boyle/Argento

TBC

19

Higginson / Café Square

TBC

20

NEXT

TBC

21

Vacant

D86

22

Vacant

TBC

FURTHER INFORMATION & CONTACTS For further information and to arrange access to the data room, please contact:

VAT We have been advised the property is registered for VAT and it is envisaged that the sale will be treated as a transfer of going concern. Andrew Coggins

Tim Reid

T: 028 9043 6915

T: 028 9043 6752

M: 074 6869 7290

M: 078 0326 4410

E: [email protected]

E: [email protected]

CBRE Imperial House

T: 028 9043 8555

Donegall Square East

F: 028 9043 9444

Belfast BT1 5HD

www.cbre.co.uk/ni

DATA ROOM A data room has been created for prospective purchasers to review due diligence relating to the property. Access is available upon request on completion of a Non-Disclosure Agreement. All information provided is given strictly without warranty, liability and reliance.

TENURE We have been advised the entire property is held freehold and long leasehold for a term of 999 years from 1999 at a peppercorn rent. Ross Sweeney

Mark Patterson

T: 028 9024 8181

T: 028 9024 8181

M: 078 1444 5101

M: 077 7170 7342

E: [email protected]

E: [email protected]

O’CONNOR KENNEDY TURTLE 22 Adelaide Street Belfast

T: 028 9024 8181

BT2 8GD

www.okt.co.uk

The residential units have been sold off on 990 year under leases at peppercorn rents.

PRICE We are instructed to seek offers in the region of £2,250,000 exclusive of VAT for our client’s freehold and long leasehold interests. A purchase at this level would reflect an attractive Net Initial Yield after service charge and rates shortfalls of 12.56% after (after allowing for purchasers costs of 5.8%) and a low capital value of c.£25 psf.

These particulars are issued by CBRE/O’CONNOR KENNEDY TURTLE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE/O’CONNOR KENNEDY TURTLE for themselves and for the vendor/ lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE/O’CONNOR KENNEDY TURTLE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. Note: All plans and photographs are for identification purposes only. Subject to contract. March 2015.