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A unique mixed-use investment opportunity Manchester Royal Exchange
A unique mixed-use investment opportunity
Manchester Royal Exchange
THE PRINTWORKS
THE TRIANGLE
HARVEY NICHOLS
DEANSGATE
ST ANN STREET
KING STREET
SELFRIDGES ARNDALE CENTRE PRIME OFFICE CORE
M&S
ST ANN’S SQUARE
CROSS STREET
On behalf of PRUPIM we are delighted to be able to offer this unique investment opportunity. The Manchester Royal Exchange, first established in 1729 is truly a piece of Manchester’s history and a reminder of the scale and importance of Manchester as a great trading city. This is only the second time in its history that it has been sold.
Investment SummaryOccupying a 100% prime location within Manchester’s retail core.
Unique, period building offering retail, leisure and office uses.
Major strategic central area site extending to 1.7 acres and providing approximately 280,000 sqft of mixed use accommodation.
Strategic location at the heart of Manchester’s retail core adjacent to Marks & Spencer, Arndale Centre and New Cathedral Street with major frontage to St Ann’s Square.
Major retail occupiers include Molton Brown, Moss Bros, Starbucks, Accessorize, Whittard and Swarovski.
Includes The Royal Exchange Arcade, a speciality arcade with a focus on high-end jewellery.
Home to the famous Royal Exchange Theatre.
Numerous opportunities to enhance value through asset management.
Offers are invited in excess of £45,860,000 (forty five million, eight hundred and sixty thousand pounds).
A purchase at this level would reflect a most attractive initial yield of 6.25% and a reversionary yield of 10.76% adopting purchaser’s costs of 5.8%.
Half of the building was badly damaged during the Second World War and the building which stands today is the result of that rebuilding in 1948. It seems rather quaint now but the purpose of an exchange was for a community of businessmen to meet and agree trades. Business was conducted in hushed tones and over a handshake!
At its peak, The Exchange had 11,000 members and was principally involved in the trading of cotton. At the time there were 130 million cotton spindles in the world and members
of The Exchange controlled 60 million of them. In 1921 The Exchange represented the largest commercial building in the world.
Gradual decline through the 1950s and 1960s ended in the closure of the Exchange in July 1968 and on 31 December 1968 it was sold to The Prudential Assurance Company Limited.
It is now home to retailers, office users and of course the famous Royal Exchange Theatre Company, which occupies the remaining part of the ground floor exchange hall.
Manchester’s first exchange was built in 1729 in Market Place but moved to the current site in 1806 and expanded over the years with the current building started in 1849.
A Brief History
Greater Manchester is home to a population of 2.6 million and is the UK’s largest regional economy with an estimated £50 billion of GDP. The economy is extremely diverse and an estimated 70 of the FTSE 100 companies are represented together with over 50 international banks and 600 major overseas companies. Major employers within the city include The Co-Operative Group, Bank of New York, Royal Bank of Scotland and legal and other professional firms accounting for approximately 30% of all office employment in the city.
Manchester has one of the largest student campuses in Europe with approximately 100,000 students at four universities providing the city with leading-edge research and development capability together with a highly-qualified workforce.
Over 25% of the UK’s motorway network runs through the Manchester area placing it within a two hour drive time of approximately 60% of the UK’s population.
Manchester is a major international city with a world famous brand.
Manchester is widely regarded as the UK’s largest financial centre outside of London and is the administrative, educational, cultural and retail capital of the North West region.
Location and Connectivity
AIR – Manchester Airport is the UK’s 3rd largest, with over 100 Airlines offering direct flights to 225 destinations worldwide, connecting over 22 million passengers to more places than any other Airport in the UK.
ROAD – Manchester has over 100 miles of motorway within the conurbation; the M62 provides a link to Liverpool, Leeds and the West and East Coast ports.
The M6 provides links to Birmingham and London in the South and Glasgow and Edinburgh to the North. Driving distances to
other major conurbations are: Leeds 64 kms (40 miles) Birmingham 128 kms (80 miles) London 290 kms (181 miles) Edinburgh 336 kms (210 miles).
RAIL – The City has two mainline railway stations, Piccadilly and Victoria linked by shuttle bus and the Metrolink tramway. There are localised stations in the City at Oxford Road, Deansgate and Salford Central. There are intercity train links to all major cities within the UK with a half-hourly service to London Euston (journey times are approximately 2 hours 10 minutes).
METROLINK – The Metrolink is Manchester’s light rail transit system which has improved access to the City Centre and has reduced road congestion. At present the service operates between Bury in the north and Altrincham in the south with 8 City Centre stops. The Government has confirmed that a budget of £520 million is available for additional extensions to this service to Oldham and Rochdale, along with the East and South Manchester conurbations.
Journeys by air to other major cities
Amsterdam 1½ hoursFrankfurt 1½ hoursParis 1½ hoursHamburg 1½ hoursGeneva 2 hoursMunich 2 hoursStockholm 2½ hoursMadrid 3 hours Dubai 7 hours New York 8 hours Singapore 13 hours
RoyalExchange
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The Market Street frontage faces Marks & Spencer with the Market Street/Cross Street junction lying opposite the Arndale Centre with new Cathedral Street being an extension of Exchange Street leading to Harvey Nichols and Selfridges. Cross Street is an important street linking the prime retail with the traditional office core centred on King Street. St Ann’s Square is one of the few pedestrianised squares within the City and presents an extremely attractive historic character.
The Manchester Royal Exchange occupies a strategic island site within the central retail core with frontages to Market Street, Cross Street, Exchange Street (St Ann’s Square) and Old Bank Street.
Situation
Completed in 1921, the building extends to approximately 280,000 sqft arranged over sub-basement, basement, ground and six upper floors. The building is of classical design with decorative stone external cladding with extensive stone detail.
Originally comprising two identical exchange halls, only one now remains known as the Southern Block and this houses the Royal Exchange Theatre.
The Northern Block which contained the original exchange hall, was destroyed in the Second World War and on rebuilding, the hall was replaced with six floors of
offices. These offices comprise approximately 81,700 sqft.
The first floor of these offices has been fully refurbished to incorporate full access raised floors, suspended ceilings with Category 2 lighting and air conditioning. The fifth and sixth floors are also refurbished but exclude air conditioning.
The remaining floors require further refurbishment.
The office accommodation is accessed from newly refurbished entrance foyers fronting both Cross Street and St Ann’s Square with lift access to all floors.
Occupying a site of approximately 1.7 acres, Manchester Royal Exchange comprises one of the City’s largest buildings and one of its most important architecturally and historically.
The Manchester Royal Exchange
The ground floor of the entire building comprises predominantly retail use with retail units around the perimeter of the building to all frontages together with a central arcade running from Cross Street through to St Ann’s Square providing 17 high quality arcade units.
The Southern Block (the section to the south of the Royal Exchange Arcade) houses the Royal Exchange Theatre which is accessed from a first floor entrance via steps and lifts adjacent to the Royal Exchange Arcade, St Ann’s Square end.
The majority of the Southern Block is leased to the Royal Exchange Theatre with the exception of the ground floor retail units together with some upper floor office suites which generally comprise small cellular rooms off central corridors on each floor and which generally require refurbishment.
Car parking for 20 spaces is provided at basement level within the Southern Block and accessed via a car lift from Old Bank Street. Further storage accommodation is provided at basement level together with sub basement level below.
The Exchange floor which houses the Royal Exchange Theatre is a spectacular area with a high glass domed ceiling, colonnades and pillars.
In 1999, the Royal Exchange was awarded ‘Theatre of the Year’ in the Barclays Theatre Awards, in recognition of its refurbishment and ambitious re-opening season.
Ground Floor
Sub-Basement Ground Floor
Exchange FloorBasement
1st Floor
TenureThe property is freehold.
ListingThe property is on the statutory list of buildings of Special Architectural and Historic Interest at Grade II.
Tenancy DetailsThe Manchester Royal Exchange is let to 50 tenants on 60 leases and licences, currently producing £3,032,615 per annum including car parking and ancillary income. The majority of retail units are let and income producing but the majority of upper floor office accommodation is vacant. After deduction of service charge and insurance shortfalls the net rental income amounts to £2,364,470 per annum.
TENANT YEARENDING
D&BRATING
TURNOVER PRE TAXPROFIT
NETWORTH
Monsoon Holdings Ltd
27/08/11 4A3 NA £175.84m £31.18m
Whittard Trading Limited
24/12/11 N4 £31.48m (£970,000) (£4.95m)
Zoo Station Ltd 31/12/11 N4 £7.18m (£351,277) (£407,372)
Lush Retail Ltd 30/06/11 N3 £47.18m (£1.46m) (£6.67m)
JD Sports Fashion Ltd
28/01/12 5A1 £1.059bn £67.44m £115.44m
Swarovski UK Ltd
31/12/11 3A1 £78.45m £2.1m £9.15m
Moss Bros Group plc
28/01/12 4A1 £101.15m £900,000 £33.27m
MoltonBrown Ltd
31/12/11 5A1 £56.79m £1.88m £47.59m
Starbucks Coffee Company (UK) Ltd
02/10/11 N2 £397.7bn (£32.85m) (£1.28m)
Nationwide Building Society
04/04/11 5A1 £5.2bn £317m £5.72bn
Typical upper floor layout
1st Floor
Plan colour represents Quintain Demise
COVENANT DETAILS: PRINCIPAL RETAIL TENANTS
Manchester is ranked second out of the UK PROMIS centres and benefits from an estimated primary catchment population of 1.543 million compared with a PROMIS 200 centre average of 345,000. The city ranks number one of the PMA Fashion Score and ranks three on the PMA Anchor Score.
There is no additional city centre floor space currently under construction and with a reported 49 city centre retailer requirements against an average of 14 in the PROMIS centres, all the ingredients are there to support further growth in the retail sector. The primary retailing area has historically been based around the
pedestrianised Market Street and one of Europe’s largest shopping centres, the Arndale Centre. More recently the development of New Cathedral Street anchored by Harvey Nichols and Selfridges now links into Exchange Street and St Ann’s Square and has extended the primary area attracting upmarket retailers compared with Market Street and the Arndale.
Such retailers include Zara, LK Bennett, Hugo Boss, Burberry etc.St Ann’s Square and Exchange Street is a significant hub of the core retail offer benefitting from high pedestrian flows and providing a link to King Street and the prime office areas.
The pitch offers more affordable rents compared with Market Street and King Street retail.
Prime retail rents for Market Street/Arndale/New Cathedral Street are established at around £250 ZA down from a peak of over £300 ZA. Exchange Street/St Ann’s Square has historically traded at £215/£220 ZA but is now trading at £180/£200 ZA, whilst Cross Street ranges from £100 to £130 ZA dependent on pitch.
The city lies at the centre of Greater Manchester, the second most populous metropolitan area in the UK with an estimated population of 2.06 million. The city itself has an estimated resident population of 460,000.
Manchester
RETAIL OVERVIEW
OFFICE OVERVIEWManchester is the largest office market outside of London with approaching 19 million sqft of total floor space. It has a tightly defined historic prime core bounded by Market Street to the north, Cross Street to the east, Mosley Street to the west and Princes Street to the south. Due to the land use and historic nature of much of the prime core, most new development has taken place outside of the historic area to satisfy the requirements of major occupiers for large floorplate buildings.
Take-up figures for 2011 showed 700,000 sqft compared to a five year average of 950,000 with take up through 2007, 2008 and 2009 at over 1 million sqft. 2010 showed a healthy 940,000 sqft. Manchester has consistently witnessed a higher level of take up than all of the other major regional cities, even through recessionary times. 2012 take up is anticipated to be similar to 2011.
There is only one new development under construction in the city at the moment namely One St Peter’s Square comprising 273,000 sqft of which 70,000 sqft has been pre-let to KPMG. This represents the only new supply and with continued levels of take up, the city is poised to return to real rental growth. Prime rents are currently £28.00 – £30.00 per sqft.
There remains only a handful of buildings which can deliver floorplates in excess of 10,000 sqft. With a continued flight to value for money space it is envisaged the demand for good quality grade B space will continue with rental values increasing to reflect this. Rents within available buildings in this sector range from £14.50 to £17.50 per sqft. We estimate total supply in this specific sub-sector to be only circa 300,000 sqft.
On the demand side, there are a large number of active requirements in the market place and specifically in the value driven sector. We estimate there to be circa 250,000 sqft of named value driven requirements. Named requirements in the whole city centre market total approximately 800,000 sqft with a further 500,000 sqft of more generalised longer term enquiries.
DATE APPLICANT DETAILS SIZE SQFT
November 2012 Arup 15,000 to 20,000
October 2012 Travel Jigsaw 40,000 to 60,000
October 2012 Agent led 1,000 to 1,500
October 2012 Agent led 20,000 to 25,000
October 2012 Agent led 9,000 to 12,000
July 2012 Agent led 4,000 to 5,000
June 2012 Royal British Legion 4,000 to 5,000
June 2012 WPP 11,000 to 13,000
June 2012 WRG 10,000 to 12,000
May 2012 Aedas 10,000 to 15,000
May 2012 Deans Court Chambers 10,000 to 12,000
May 2012 Ecclesiastical Insurance 8,500
April 2012 Home Office 25,000 to 35,000
March 2012 BPP 50,000 to 60,000
March 2012 HSb Engineering 17,000 to 24,000
233,000 to 297,500
DATE BUILDINGAREA SQFT
TENANTRENT/ SQFT
March 2012 The Observatory 4,650 Ward Hadaway £19.50
March 2012 City Tower 17,884 Hays £17.50
March 2012 City Tower 8,942 Hempsons £17.50
March 2012 Steam Packet House 6,622 Alec Finch £15.00
March 2012 Churchgate House 6,555 Manchester
Enterprises £16.00
April 2012 St James’ Building 5,000 General Medical
Council £14.50
May 2012 Riverside 21,500 Money Plus Group £14.50
August 2012 Bridgewater House 5,456 Swinton
Insurance £13.50
September 2012 Freetrade Exchange 5,628 Zephus £18.50
SELECTION OF CURRENT ‘VALUE’ REQUIREMENTS
TRANSACTIONS – REFURBISHED SPACE
Demise Area Sub Tenant Lease Start Lease Expiry
Rent Review
Rent £pa Comments
BasementGeneral Space
7,692 Vacant
BasementRetail Units
3,766 Vacant
Ground & Exchange Level
18,290 TGI Fridays UK Ltd
29/03/2012 26/06/2027 29/03/2017 £240,000 9 months rent free. 3 months half rent.
Floor 1-6Turret Rooms
N/A TGI Fridays UK Ltd
29/03/2012 26/06/2027 29/03/2017 £20,000 9 months rent free. 2.5 years at half rent.
GF Retail &First Floor
8,422 Vacant
GF Sub-Basement Unit 13
957 Body Shop International plc
03/11/2006 02/11/2016 £120,000
GF Unit 15-17
780 Royal Bank of Scotland
26/03/2012 25/03/2015 £85,000
GF Basement Unit 1
895 Thorntons plc
25/12/2008 24/12/2013 £106,000
GF Unit 7 784 Vacant
GF Unit 8 726 Vacant
GF Unit 9 625 Vacant
GF Unit 12 570 Vacant
TOTAL 43,507 £571,000
A hands-on approach to the office areas, both the large floorplate areas and also the smaller individual rooms could generate an additional circa £1.33m of income.
Quintain’s lease extends over approx 43,500 sqft (excluding the unused sub-basement areas) and expires in 2078.
A large proportion of this space is not sub-let and opportunities exist subject to negotiation to regear this lease, take control of the sub-lettings and generate additional lettings from the remaining vacant space. Historically Quintain had plans to develop a speciality arcade at ground and basement levels. It has sub-let part of the space in accordance with the schedule opposite.
The Exchange Hall and associated space which is let to The Royal Exchange Theatre is an amazing space which does not, under the current lease, generate any rental. The lease expires in 2022 with the potential to generate a significant reversion.
Manchester Royal Exchange has always been associated with quality retailing but the opportunity exists to drive this further with some strategic vacants and through further refurbishment and positioning of the central arcade.
The opportunity exists to reconfigure space to create larger retail units, especially to Exchange Street, to meet current retailer requirements.
There is significant reversionary potential within Manchester Royal Exchange from letting the current vacant space, particularly within the office areas.
The Opportunities
QUINTAIN SUB-TENANCY SCHEDULE
Tenancy SchedulesFull Tenancy Schedules are included in the following pages. Specific lease terms can be found in the property specific legal Data Room.
VATThe property has been elected for VAT and whilst it is envisaged that the transaction may be structured as transfer of a going concern, the sale will be subject to VAT.
ProposalOffers are invited in excess of £45,860,000 (forty five million, eight hundred and sixty thousand pounds). A purchase at this level would reflect a most attractive initial yield of 6.25% (4.87% triple net) a reversionary yield of 10.76% (adopting the current passing rent on the main Quintain lease) and an equivalent yield of 8.68% (true equivalent 9.1%). Adopting a full ERV of the “Quintain Space” the final reversionary yield is 11.06%. In all cases adopting purchaser’s costs of 5.8%.
Further Information and EPCsThis is a unique opportunity to purchase a major historical property within Manchester’s prime retail core and offers a purchaser the potential to actively manage and enhance value through further asset management initiatives. Should you require further information, details can be found in the property specific legal Data Room with access details on request.
Gurminder Manak0161 956 [email protected]
Mark Rawstron0161 956 [email protected]
David Winterbottom0161 956 [email protected]
gva.co.uk/5800
GVA is the trading name of GVA Grimley Limited. GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: 1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only. JANUARY 2013. DESIGNED AND PRODUCED BY ALEXANDER MACGREGOR LTD. WWW. ALEXANDERMACGREGOR.CO.UK
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
RETAIL – MARKET STREET2 Market St 41 Monsoon Holdings
Ltd t/a AccessorizeGF Sales 617.0 29/09/2002 28/09/2012 86,750 1,598 695.93 83,375 Tenant holding over. New
lease in negotiation.ITZA 422.0 190
Base 426.0 7.50
4 Market St 42 Otyup Ltd t/a Moda in Pelle
GF Sales 600.0 03/03/2004 23/06/2014 90,000 1,900 744.68 85,585
ITZA 430.0 190
Base 518.0 7.50
6 Market St 43 Whittard Trading Ltd GF Sales 700.0 06/10/2003 05/10/2013 96,500 2,101 785.13 98,200
ITZA 493.0 190
Base 604.0 7.50
8 Market St 44 Zoo Station Ltd t/a Pylones Gifts
GF Sales 651.0 14/02/2006 13/02/2016 95,000 2,067 776.56 91,148
ITZA 459.0 190
Base 525.0 7.50
10 Market St 45 Lush Retail Ltd t/a Lush
GF Sales 668.0 21/08/2003 28/09/2018 29/09/2013 92,200 1,720 671.81 88,920
ITZA 456.0 190
Base 304.0 7.50
18 Market St 49 J D Sports Fashion plc t/a Size shoes
GF Sales 633.0 25/12/2001 25/12/2011 88,500 2,629 673.97 85,123 Tenant Holding over. Section 26 Notice served requesting 5 year lease.
ITZA 434.0 190
Base 355.0 7.50
Sub Total 6,601.0 £548,950 £12,015 £4,348.08 £532,351
RETAIL – EXCHANGE ST1 Exchange St 51 Arthur Kay &
Brothers Ltd t/a Kays Jewellers
GF Sales 413.0 29/09/1997 28/09/2022 29/09/2012 & 29/09/2017
62,000 1,338 507.37 65,010 2012 rent review outstanding.ITZA 347.0 180
Base 340.0 7.50
3 Exchange St 52 Vacant GF Sales 559.0 1,680 655.08 74,318 Terms being agreed with Glenkier Whiskies Ltd. 10 year lease (6 year break) at £80,000 pa.
ITZA 395.0 180
Base 429.0 7.50
5 Exchange St 53 Swarovski UK Ltd t/a Swarovski Gifts
GF Sales 753.0 10/10/2003 24/12/2018 25/12/2013 105,000 2,081 824.71 94,253
ITZA 504.0 180
Base 471.0 7.50
7 Exchange St 54 Vacant GF Sales 712.0 2,217 918.04 85,103 Unit being marketed. Quoting rent £85,000 pa.ITZA 423.0 180
GF Store 312.0 7.50
Base 883.0 7.50
Sub Total 4,872.0 £167,000 £7,316 £2,905.20 £318,684
RETAIL – ST ANNS SQ1-5 St Ann’s Sq 61 Moss Bros Group plc GF Sales 2,152.0 01/09/2008 28/09/2023 01/09/2013
& 29/09/2018295,000 21,329.00 3,207.67 294,276
Base Sales 1,147.0 18.00
ITZA 1,389.0 180.00
Base Store 3,148.0 7.50
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
7 St Ann’s Sq 63 Molton Brown Ltd GF Sales 893.0 31/07/2008 28/09/2018 29/09/2013 155,000 5,188.00 1,817.67 149,561
GF ITZA 630.5 180.00
Lower Grd 107.0 7.50
GF Store 80.0 7.50
Retail (Spa) 1,926.0 18.00
9 St Ann’s Sq 21 Starbucks Coffee Company (UK) Ltd
GF Sales 2,216.0 24/06/1997 23/06/2017 24/06/2012 310,000 6,766.00 2,525.32 289,442 2012 rent review outstanding.GF ITZA 1,455.0 180.00
Base Sales 1,483.0 18.00
Base Store 113.0 7.50
Sub Total 13,265.0 £760,000 £33,283 £7,550.66 £733,277
RETAIL – OLD BANK ST5 Old Bank St 23 Fifth Floor Ltd GF 1,372.0 08/10/2012 07/10/2027 08/10/2017
(08/10/2022)50,000 11,695 3,324.83 20.00 50,539 Vendor top up of rent free.
(Peppercorn to 07/07/13 and £25,000 to 08/07/15). Tenant’s break on min 6 months notice.
Base 3,268.0 6.00
Sub-Base 2,327.0 1.50
7-9 Old Bank St
26 Intro Menswear Ltd GF Sales 843.0 18/08/2008 17/08/2013 1,605 491.29 25,580 Lease to Intro Menswear still in place. Ex Act. £25,000 pa. Unit vacant. Tenant claims to be in administration. Assume zero rent.
GF ITZA 718.0 35.00
Base Store 60.0 7.5
13 Old Bank St 27 Stephen Barker t/a Leather Goods
GF Sales 504.0 22/09/2011 21/09/2014 (22/03/2012) 15,750 880 278.82 14,735 Ex Act. Inclusive lease. Landlord & tenant rolling break on 3 months notice.
GF ITZA 421.0 35.00
15-17 Old Bank St
28 The Flannels Group Ltd t/a Life Ladies & Menswear
GF Sales 1,249.0 20/02/2012 19/02/2017 20/02/2014 18,750 4,932 1,379.90 40,490 Fixed uplift to £37,500 pa 20/02/2014 to Expiry Date.GF ITZA 938.0 35.00
Base Store 1,532.0 5.00
Sub Total 11,155.0 £84,500 £19,112 £5,474.84 £131,344
RETAIL – CROSS ST2 Cross St 31 Andrew Howard
Davies t/a Royal Exchange Jewellers
GF 55.0 01/01/1997 31/12/2011 9,750 157 47.82 185 10,175 Tenant holding over. No notices served.
4 Cross St &Store 346
32 Aleef Garages Ltd t/a Aleef News
GF 40.0 04/04/2007 23/06/2022 24/06/2012 & 24/06/2017
7,500 109 37.44 185 7,400 Rent review outstanding. Demise known as Kiosk 2A & includes store 346. Ex Act.
12-14 Cross St 22 Nationwide Building Society
GF Sales 3,039.0 29/09/2009 28/09/2019 29/09/2014 168,000 5,149 1,901.28 160,080
ITZA 1,334.0 120
16 Cross St 38 Cecil Jacobs Ltd (in administration)
GF Sales 569.0 1,827 661.68 49,740 Unit vacant but lease not disclaimed. Terms agreed with London Camera Exchange Ltd. 10 year lease at £40,000 pa no breaks.
GF ITZA 471.5 100
Base 518.0 5.00
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
18 Cross St 39 Vacant GF Sales 464.0 1,332 490.53 41,895
GF ITZA 399.0 100
Base 399.0 5.00
Sub Total 5,084.0 £185,250 £8,574 £3,138.75 £269,290
RETAIL – ROYAL EXCHANGE ARCADE1 1 Razors Edge Group
Ltd t/a Razors EdgeGround Sales
702.0 24/02/2006 24/03/2016 24/03/2011 37,500 11,149 913.25 32,303 2011 rent review outstanding.
ITZA 418.5 65.00
Base 1,020.0 5.00
3 3 Ofriscate Ltd t/a Mays Jewellers
Ground Sales
543.0 25/12/2007 24/12/2017 25/12/2012 37,500 7,873 596.83 30,495 Tenant’s break clause removed by Deed of Variation in return for rent free from 24/06/2012 to 25/03/2013. Vendor top up.
ITZA 429.0 65.00
Base 522.0 5.00
4 4 Damian Brennan t/a Contemporary Six Art Gallery
Ground Sales
488.0 01/02/2012 31/01/2014 25,450 6,310 466.30 28,160 Ex Act. Mutual rolling break on 2 months notice. All inclusive rent bar recovery of £119 pa.
ITZA 405.0 65.00
Base 367.0 5.00
5 5 Munch Ltd t/a Munch Café
Ground Sales
592.0 24/06/2011 23/06/2016 25,750 4,379 342.51 27,430 Tenant’s break clause on 6 months notice.
ITZA 422.0 65.00
6 13 Alexander & Elizabeth Ruben t/a Goldmans Jewellers
Ground Sales
623.0 05/10/2011 04/10/2013 (05/04/2012) 9,000 4,626 320.89 33,703 Mutual option to determine at any time after 05/04/2012. Ex Act. Schedule of condition.
ITZA 518.5 65.00
7 7 David Geoffrey & Andrea Pinder t/a Unit 7 Gifts
Ground Sales
616.0 25/12/2006 24/12/2016 24/12/2011 39,000 9,638 714.31 32,773 2011 rent review outstanding.
ITZA 451.5 65.00
Base 685.0 5.00
8 8 Christopher & June M Aston t/a Aston Tobaconists
GF Sales 437.0 03/02/1997 24/03/2012 29,250 3,225 277.69 23,985 Tenant holding over. No notices served. Tenant wants to upsize to Unit 12.GF ITZA 369.0 65.00
9 9 Erica & Edwards Ltd t/a Erica Edwards Jeweller
GF Sales 548.0 19/10/2009 18/10/2014 34,000 11,551 823.20 31,500 Fixed rental uplifts to £34,000 pa (19/10/12) and £36,000 (19/10/13). Guarantee from Stephen Irwin Wilding. Tenant option to renew for a 5 year term at end of term subject to 6 months notice.
ITZA 426.0 65.00
Base 512.0 5.00
Sub-Base 500.0 2.50
10 10 Roystons Snook & Sara Usher t/a Jenny Jones
GF Sales 1,115.0 29/06/2009 28/09/2019 29/09/2014 (29/09/2014)
35,000 9,580 694.71 38,015 Fixed rental uplift to £35,000 (29/09/12). Tenant’s break clause on 6 months notice. Service charge shortfall of £1,243 pa.
ITZA 571.0 65.00
GF Store 180.0 5.00
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
12 12 Vacant GF Sales 1,162.0 8,606 560.16 39,975 Quoting £40,000 pa. Interest from tenant of Unit 8.
ITZA 615.0 65.00
14 14 Wave Contemporary Jewellery Ltd
GF Sales 567.0 24/06/2010 23/01/2012 10,000 4,184 297.19 27,755 Tenant holding over. Pending lease negotiations.
ITZA 427.0 65.00
16-18 16 Wave Contemporary Jewellery Ltd
GF Sales 908.0 01/07/2009 28/09/2019 29/09/2012 47,500 6,720 535.74 49,140 Fixed uplift to £47,500 (29/09/12) and £50,000 (29/09/13).ITZA 756.0 65.00
19 19 M Stavrinou t/a Royal Exchange Beauty Spa
GF Sales 619.0 29/07/2005 28/09/2020 29/09/2015 26,500 9,166 743.59 32,615
ITZA 440.0 65.00
Base 803.0 5.00
20 20 Jayne Louise Anderson t/a Randalls Café
GF Sales 399.0 27/11/2003 24/12/2013 30,000 2,921 258.58 25,935 Tenant in dispute over rent review and querying current rent. Pre rent review rent £28,400 pa.
ITZA 399.0 65.00
Sub Total 13,908.0 £386,450 £99,928 £7,544.95 £453,784
11-17 Royal Arcade, 6 Cross St,
12-16 Market St,
9 Exchange St(Basement, Ground, 1st Floors)
11 Quintain (Manchester) Ltd
Base General Space
7,692.0 25/12/1979 24/12/2078 25/12/2011 5 yearly
675,000 85,317 30,950.36 2.50 19,230 Full repairing and insuring main structure, common parts via service charge and insurance payments. User clause stipulates use as a high quality shopping centre (landlord’s consent to change absolute). Absolute prohibition on assignment of whole or part. Underletting of whole or part subject to landlord’s consent. Landlord’s break clause on redevelopment grounds at 60th and 80th years. Rent review is by reference to the following formula:
Amount of fair yearly rent at review date less 5%
x£150,000
---------------------------------------------Total income receivable
fom the demised premises
The 2011 rent review has not been actioned.
The demise includes an additional area, not used, at sub-basement level of approx 6,000 sqft.
Note ERV assumes VP.
Base Retail Units
3,766.0 5.00 18,830
Ground & Exchange Level
18,290.0 10.00 182,900
Floor 1-6 Turret Rms
N/A 20,000
GF Retail & 1st Floor
8,422.0 5.00 42,110
GF Sub- Base Unit 13
957.0 100 95,700
GF Unit 15-17
780.0 100 78,000
GF/Base Unit 1
895.0 100 89,500
GF Unit 7 784.0 100 78,400
GF Unit 8 726.0 100 72,600
GF Unit 9 625.0 100 62,500
GF Unit 12 570.0 100 57,000
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
Turret Rooms1st to 5th androof level
709 Quintain (Manchester) Ltd
N/A 29/03/2012 28/06/2027 29/03/2017 & 29/03/2022
20,000 N/A N/A 20,000 Lease of space to provide ventilation for the TGI Friday’s subletting. Current rent free. Vendor top up. RPI reviews. Ex Act. Tenant’s option to renew from 20/06/2026 to 28/06/2027. Landlord’s break on termination of principal head lease.
Sub Total 43,507.0 £695,000 £85,317 £30,950.36 £836,770
Part Ground, 1st & Upper Floors,North Block MRE comprisingExchange Hall7 Offices
101 Royal Exchange Theatre Trustees Ltd
Theatre 33,988.0 04/07/1997 28/09/2022 N/A Peppercorn 127,507 33,572.36 10.00 505,772 Full recovery of service charge.1st Floor
Office12,447.0 7.50
2nd Theatre 6,753.0 5.00
3rd Office 6,265.0 5.00
Ground Lift 80.0
Base Lift 80.0
Sub-Base Store
2,483.0 3.00
Total Theatre 62,096.0 £127,507 £33,572.36 £505,772
NORTH BLOCK OFFICESEXCHANGE FLOOR
Rooms 41-51 84 Vacant 3,324 21,171 1,602.73 8.00 26,592
Rooms 52-55 102 Vacant 1,357 9,067 641.86 8.00 10,856
Rooms 56/57 81 Vacant 732 4,870 346.44 8.00 5,856
Rooms 58-60 80 Burns Jewellers Group Ltd
1,076 12/03/2004 24/03/2014 25/03/2009 15,480 7,212 538.14 8.00 8,608 Ex Act.
Room 61 83 Vacant 304 1,314 142.72 8.00 2,432
Room 149, 1st Floor
85 Vacant 159 992 76.47 8.00 1,272
1st Floor 701 Vacant 11,751 75,547 6,225.54 15.00 176,265 Fully refurbished. Quoting £16 per sqft. Air conditioned.
2nd Floor 702 Vacant 16,597 86,122 7,855.78 15.00 248,955 Unrefurbished. ERV assumes refurbished.
3rd Floor 703 Vacant 16,600 90,365 7,860.86 15.00 249,000 Unrefurbished. ERV assumes refurbished.
4th Floor 704 Vacant 15,727 86,773 7,443.11 15.00 235,905 Unrefurbished. ERV assumes refurbished.
5th Floor 705 Vacant 12,852 74,962 6,082.83 15.00 192,780 Refurbished – no AC. ERV assumes AC fitted.
5th Floor Upper 707 Vacant 5,945 39,954 2,812.19 15.00 89,175 Unrefurbished. ERV assumes refurbished.
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
6th Floor 708 Vacant 2,220 15,099 1,039.31 15.00 33,300 Refurbished – no AC.ERV assumes AC fitted.
6th Floor East 706 A Wood, D Armstrong & M Hagger
6,148 25/12/2009 24/12/2019 25/12/2014 (25/12/2014)
72,552 41,080 3,070.25 15.00 92,220 Tenant’s break on 4 months notice. Service charge cap of £43,036 pa.
Total North Block Offices
94,792 £88,032 £554,528 £45,738.23 £1,373,216
SOUTH BLOCK OFFICES2ND FLOOR
Room 225/226 825 People for Work Ltd 671 04/12/2008 03/12/2013 04/12/2011 9,400 4,293 336.79 8.00 5,368 2011 rent review outstanding.
Room 227 237 TSG Property Consultants Ltd
227 01/12/2011 30/11/2012 1,935 1,527 111.24 8.00 1,816 Ex Act. Inclusive lease. New lease in negotiation.
Room 228 228 Vacant 290 1,827 137.56 8.00 2,320
Room 229 821 Mr J & Mrs E Weis 260 25/03/2012 24/03/2013 4,500 1,722 132.26 8.00 2,080 Inclusive lease.
Room 230 230 Face Placements 527 12/06/2012 11/06/2017 (11/06/2015) 8,300 3,363 268.09 8.00 4,216 Ex Act. Tenant’s break on 6 months notice. Inclusive lease.
Room 231-232 232 Vacant 1,123 7,532 529.77 8.00 8,984
Room 231A 245 Vacant 130 876 61.16 8.00 1,040 Store Room.
Storeroom 2nd Floor
802 Vacant 312 2,073 145.74 5.00 1,560
3RD FLOOR
Rooms 324/5 324 Vacant 722 4,832 341.36 8.00 5,776
Rooms 326/327 857 Vacant 725 4,870 341.36 8.00 5,800
Room 328 832 Amcare Ltd 299 05/05/2010 03/05/2013 6,820 2,013 157.88 8.00 2,392 Ex Act. Inclusive lease.
Room 329 834 Vacant 302 2,043 142.72 8.00 2,416
Rooms 330/331 839 Vacant 588 3,927 280.12 8.00 4,704
Room 332 332 Alexander Bruce Thomas
303 25/12/2009 24/12/2014 3,800 2,043 151.15 8.00 2,424 Ex Act.
Room 333 333 Vacant 613 4,091 290.43 8.00 4,904
Kitchen 835 Communal Kitchen 309 25.47
4TH FLOOR
Rooms 423-426
486 Vacant 1,111 7,366 519.62 6.00 6,666 Room 423 is storage (325 sqft).
Rooms 427-430
488/ 489
Actionstride Ltd 1,099 25/03/2008 24/03/2013 10,000 5,374 579.04 8.00 8,792 Lease relates to 429/430 but tenant in occupation of whole.
Rooms 431/432 840 Vacant 515 1,102 258.29 8.00 4,120
Rooms 433/434 845 Regent Innovations Ltd
660 05/01/2012 04/01/2017 (04/01/2015) 5,345 4,444 512.64 8.00 5,280 Ex Act. Tenant’s break on 6 months notice. Service charge increased by RPI.
Rooms 435-440
436/ 438/ 487
Vacant 656 9,318 662.33 8.00 5,248
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
Rooms 441-447
441 Richard Ian Brown & Peter Brennard
1,496 01/08/2010 31/07/2015 17,900 10,028 747.89 8.00 11,968 Rolling break clause on 31 July.
Rooms 448-451
448-451
Vacant 971 6,521 463.55 8.00 7,768
5TH FLOOR
Rooms 513 & 513B
515 Northern Holidays Ltd
221 20/07/2009 24/06/2014 5,500 1,491 119.17 8.00 1,768 Ex Act. Inclusive lease.
Rooms 514-516 & 513A
524 Lipsom Lloyd Jones Ltd
775 04/12/2007 03/12/2012 10,800 4,944 390.82 8.00 6,200 Tenant notice to determine on 25/01/2013.
Rooms 517-519
517 Henderson Booth Snell Ltd
751 03/07/2011 02/07/2013 7,510 5,060 373.29 8.00 6,008 Ex Act.
Room 520 549 Vacant 192 1,296 91.70 8.00 1,536
Rooms 521 & 535
522 Women in Informal Employment Ltd
682 30/04/2010 24/06/2014 (29/04/12) 9,548 4,576 342.20 8.00 5,456 Tenant’s break on 6 months notice. Ex Act.
Rooms 536-540
536/ 538
Vacant 938 6,303 443.21 8.00 7,504
Room 541 561 HLO Associates Ltd 192 01/10/2010 30/09/2012 3,900 1,296 8.66 8.00 1,536 New 2 year BPF lease being documented at £3,400 inclusive. Current lease Ex Act. Inclusive lease.
Rooms 542- 545
540 Vacant 595 3,999 280.12 8.00 4,760
Rooms 546-550
856 Vacant 796 5,325 376.97 8.00 6,368
6TH FLOOR
Management Suite
999 Prudential Assurance Company Ltd
N/A N/A N/A N/A Management office. No lease and no rent.
Total South Block Offices
18,742 £105,258 £125,784 £9,622.60 £146,778
BASEMENT STORES
Basement beneath 12/14 Cross St
653 Unlettable N/A N/A 1,164.59 Unlettable.
21 664 Vacant 744 650 357.88 5.00 3,720
47 647 Christopher Aston & June M Aston
300 25/03/2008 24/03/2012 1,500 267 144.01 5.00 1,500 Tenant holding over. Inclusive lease.
47A 673 Vacant 326 297 N/A 5.00 1,630 No insurance charged.
48 675 Vacant 402 346 185.92 5.00 2,010
48A 676 Razors Edge Group Ltd
330 23/11/2011 24/03/2016 (Anytime) 1,700 304 159.61 5.00 1,650 Ex Act. Break on 1 months notice. Inclusive lease.
49/49A 678 Vacant 700 613 326.66 5.00 3,500
Total Basement Stores
2,802 £3,200 £2,477 £2,338.67 £14,010
Unit Ref No Tenant Area sqft Lease Start
Lease Expiry
Rent Review (Breaks)
Current Rent £pa
Apportioned Service Charge £pa
Apportioned Insurance Charge £pa
ERV per sqft
ERV £pa
Comments
SUB-BASEMENT STORES
18A 1018 Intro Menswear Ltd 99 02/09/2008 17/08/2013 (Anytime after 01/03/2009)
45 46.29 5.00 495 Ex Act. Inclusive lease. Tenant has vacated. Assume zero rent.
24 652 Intro Menswear Ltd 195 07/10/2011 06/10/2014 (Anytime) 79 91.53 5.00 975 Ex Act. Break on 3 months notice. Inclusive lease. Tenant has vacated. Assume zero rent.
26/27 649 Vacant 342 152 160.75 5.00 1,710
28 654 Jayne Louise Anderson
60 19/06/2011 24/12/2013 1,000 37 32.38 5.00 300 Ex Act. Inclusive lease.
31 655 Munch Ltd 200 24/06/2011 23/06/2016 (Anytime) 1,200 79 98.17 5.00 1,000 Ex Act. Break on 3 months notice. Inclusive lease.
33 656 Vacant 502 229 236.17 5.00 2,510
34A 661 Vacant 116 40 55.33 5.00 580
34C 657 Vacant 49 37 25.16 5.00 245
1,9,10,11 658 Vacant 1,497 N/A 698.56 N/A N/A Unlettable.
14/18/22/ 27, 33A,34A, 47,418A
901 Prudential Assurance Company Ltd
595 3,807 280.12 5.00 2,975
Total Sub- Basement Stores
3,060 £2,200 £4,505 £1,724.46 £10,790
CAR PARKING
Spaces 3,4,13
1019 A Wood, D Armstrong & M Hagger
25/12/2009 On notice 5,000 N/A 11.11 2,000 6,000 Rolling licence.
Car space 7 1007 Royal Exchange Theatre Trustees Ltd
01/11/2003 On notice 1,750 N/A N/A 2,000 2,000 Licence.
Spaces 1,2,5,6,8-12, 14-20
Vacant N/A 2,000 32,000
MISCELLANEOUS
Substation Sub-Basement
800 Electricity North West Ltd
N/A 25/03/1974 25/03/2073 N/A N/A N/A N/A
Cable Easement
1001 Norweb plc N/A 01/11/1966 01/11/1987 25 N/A N/A N/A N/A Holding over.
Sub Total £6,775 N/A £11.11 £40,000
OVERALL TOTAL
279,884 £3,032,615 £1,080,346 £154,920.27 £5,366,156 ERV assumes VP of Quintain main lease.
£5,203,958 ERV assuming Quintain ERV is passing rent.
Note: Floor areas have not been fully measured by GVA and are generally taken from original lettings.
A unique mixed-use investment opportunity
ManchesterRoyal Exchange
