17 GREAT VICTORIA STREET, BELFAST, BT2 7AD - PRIME VIRTUAL FREEHOLD OFFICE BUILDING LET TO THE GOVERNMENT FOR A FURTHER 8.4 YRS - LoopNet
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
17 GREAT VICTORIA STREET, BELFAST, BT2 7AD PRIME VIRTUAL FREEHOLD OFFICE BUILDING LET TO THE GOVERNMENT FOR A FURTHER 8.4 YRS
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
INVESTMENT SUMMARY
GREAT NORTHERN TOWER
17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
GREAT NORTHERN TOWER IS AN OPPORTUNITY TO ACQUIRE A GOVERNMENT LET
OFFICE INVESTMENT WITH REVERSIONARY POTENTIAL AND FUTURE REDEVELOPMENT
(SUBJECT TO APPROVALS).
LET TO THE DEPARTMENT FOR COMMUNITIES UNTIL 2 MARCH 2027 AT A CURRENT PASSING
RENT OF £1,750,000 PER ANNUM (£16.08 PER SQ FT) ON FULL REPAIRING AND INSURING TERMS.
• Great Northern Tower is an iconic Belfast office building located in a prime position close to
the city centre and major transport hub.
• The building, constructed in 1992, offers a striking glazed façade and double height reception
and lobby area.
• The tower extends to approximately 108,790 sq ft (10,106.59 sq m) over ground and 12 floors
of offices with raised floors and suspended ceilings.
• The office is fully let to the Department of Communities on a 10 year full repairing and insuring
lease from 3rd March 2017 – 8 years and 5 months unexpired.
• The current passing rent is £1,750,000 per annum reflecting a low rent of only £16.08 psf.
Recent evidence indicates that the current ERV potential is £17.50 to £18.00 psf.
• Held by way of long leasehold for 900 years from 1989 at a fixed ground rent of £1 p.a.
• Offers are sought in excess of £24,000,000 (Twenty Four Million Pounds). A purchase at this
price would reflect a Net Initial Yield of 6.83% and a Reversionary Yield of 7.64% (assuming a
letting of £18.00 psf) allowing for purchaser costs of 6.8%.
2
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
3
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
9
3 11 10
2 8
1
6 7
4
5
1. Great Northern Tower 5. BBC 9. Barclays Bank
2. Transport Hub 6. Grand Central Hotel 10. Belfast City Hall
3. Europa Hotel 7. Bank of Ireland 11. Danske Bank
4. Invest Northern Ireland 8. Ulster Bank
SITUATION
The property is situated on the
City Hall
city office core arterial route of Danske
Bank
Great Victoria Street and is easily
accessed by foot from the existing Donegall Sq South
Jurys Inn
main rail station at Great Victoria Howard Street
Grosvenor Road
Street and bus station at Europa
Bus Centre both of which are Fitzwilliam Hotel
proposed to be redeveloped into
a new proposed integrated Belfast Grand Opera Hs
Bedford St
Great Victoria St
Transport Hub known as Weavers Grand
Glengall St Central
Cross (weaverscross.co.uk).
The prime retail offer is a 10 minute Europa Hotel Maldron
walk away at Donegall Place. The Hotel
Europa Hotel, being a four star
272 bed hotel is adjacent to the
property. Office occupiers in the
Invest NI
vicinity include Government (NI
Housing Executive; HM Revenue
& Customs), BBC, Axiom, Regus Millennium Hse
Managed Services, SSE Airtricity,
Lincoln Bldg
Hampton
Hotel
Pearson and CME (Chicago
Mercantile Exchange).
BBC
Hop
e Str
eet
4
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
LOCATION
BELFAST IS THE CAPITAL CITY OF NORTHERN IRELAND WITH A GREATER METROPOLITAN POPULATION OF
APPROXIMATELY 675,000 PERSONS. THE CITY IS LOCATED 105 MILES NORTH OF DUBLIN AND 70 MILES
SOUTHEAST OF DERRY.
GEORGE BEST
M BELFAST CITY AIRP
ORT
3
KLIN
WEST
DIVIS
ST
CASTLE ST
H COLLEGE ST
COLLEGE SQ NT
CHICHESTER ST
COLLEGE
K
WELLINGTON PL
TLIN
DUR
CITY HALL
HAM
SQ
WES
ST
STH
DONEGALL SQ
HOWARD ST
RD
GROSVENOR
GLENGALL ST
GRT VICTORIA ST
S)
IN K
HR
BL LIN
HOP
(2
E ST
DU AIL
BRU
R
CE S
N
T
GA
TO
LA
GRT VICTORIA ST
ER
RIV
SAND
Y RO
W
ORMEAU
Served by bus and rail services and with immediate PARKtrunk roads and motorway
Direct access to main
access to proposed Transport Hub. Direct rail link to network and high availability of public car parking in
Dublin (2 hour journey time). the locality.
George Best Belfast City Airport is 3 miles away whilst 10 minute walk to Belfast City Hall and core shopping
Belfast International Airport is 19 miles. These provide areas.
flights to UK (London 1 hour flight time with c. 40
flights daily), Europe and North America.
5
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
DESCRIPTION
GREAT NORTHERN TOWER IS AN ICONIC OFFICE BUILDING IN BELFAST, PROVIDING 12 FLOORS OF OFFICE
ACCOMMODATION IN A PRIME CENTRAL POSITION NEXT TO THE WORLD FAMOUS EUROPA HOTEL.
The office building is of a steel frame and brick construction Europa Bus Centre. The upper floors comprising 12 floors
with a signature glazed façade to the front which protrudes of open plan office accommodation partly oversail the
onto Great Victoria Street. The ground floor provides a Mall above ground floor level. The office accommodation
striking double height entrance and lobby area. throughout has good natural light and an excellent floor
to ceiling height. The office specification includes raised
The Great Northern Mall (under different ownership) floors, suspended ceilings, WC’s on each floor, 4 passenger
adjoins the ground floor and provides the main pedestrian lifts and a gas fired central heating system.
access to the Great Victoria Street Railway Station and the
6
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
TRANSPORT HUB
THE GREAT VICTORIA STREET TRANSPORT HUB IS LOCATED DIRECTLY TO THE REAR OF THE OFFICE BUILDING
AND PROVIDES THE MAIN TRAIN LINK FROM BELFAST TO DUBLIN AND CENTRAL BELFAST’S MAIN BUS TERMINAL.
The proposed £200 Million transformation of the Belfast car parking and a new public square. The remaining land is
Transport Hub includes the redevelopment of the Europa proposed as a phased commercial development known as
Bus Centre, Great Victoria Street Railway Station and Weavers Cross which will provide extensive commercial
surrounding NI Transport Holding Company (NITHC) land space including new office buildings directly to the rear of
at Grosvenor Road. the Great Northern Tower.
The NITHC is proposing to develop an integrated transport This will further consolidate this area as one of Belfast’s
interchange comprising a new station concourse, 26 bus prime office locations.
stands, 8 railway platforms, bus maintenance and parking,
Europa
Hotel
Transport
Hub
7
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
OFFICE OCCUPATIONAL MARKET
THE OFFICE MARKET IN BELFAST HAS HAD AN EXCEPTIONAL 2018 WITH RECORD TAKE UP OF C. 643,983 SQ FT
IN 63 SEPARATE TRANSACTIONS TO Q3.
Belfast would typically have an annual uptake of c. 430,000 creating over 1,000 jobs. Quality Grade A supply remains
sq ft. For the market to surpass this figure is a very positive low and fragmented across various parts of the City, with
sign for the future. It is anticipated that the remainder of the the market relying on refurbished buildings to provide the
year will be strong given the number of active requirements supply required to meet the demand for office space.
in the market.
As a result average headline rents at the end of H1 2018 for
Highlights in the first half of 2018 have been the deals refurbished Grade A accommodation stand at £21.00 psf.
to All State and the Northern Ireland Civil Service which
have accounted for approximately 290,000 sq ft of the total Recent office lettings have included:
take up. There have also been major FDI announcements
from Invest NI on behalf of companies including Fintru,
Novosco, Smashfly and Bamboo Rose to name a few
ADDRESS TENANT SIZE (SQ FT) RENT PSF DATE TERM
5th Floor Cleaver House, Belfast Aecom 4,750 £19.00 Q2 2018 5 years
Number 9 Lanyon Place, Belfast Northern Ireland Civil Service 150,000 £21.00 Q1 2018 5 years
10th Floor, Clarence Street West. Belfast Aecom 9,560 £19.00 Q1 2018 10 years
Donegall Square West, Belfast Grant Thornton 12,240 £20.00 Q4 2017 10 years
Weaving Works, Ormeau Avenue, Belfast First Derivatives 25,038 £18.50 Q3 2017 10 years
City Quays 2, Clarendon Dock, Belfast ITV 11,388 £20.00 Q3 2017 15 years
Lincoln Buildings, Great Victoria Street, Belfast Axiom Law 26,124 £18.00 Q1 2017 10 years
Bedford House, Bedford Street, Belfast Causeway Asset Management 3,165 £22.00 Q1 2017 15 years
Millennium House, Belfast HCL 13,130 £17.50 Q1 2017 10 years
The Soloist, Lanyon Place, Belfast KPMG 39,374 £21.50 Q4 2016 15 years
Based on market demand and recent rental evidence we believe that Great Northern Tower’s current rent is reversionary
to £17.50 to £18.00 psf.
OFFICE INVESTMENT MARKET
The Northern Ireland commercial property market price, totalling 69,611 square feet the investment had a
continues to be resilient. Investor interest in the office guide price of £21m.
sector remains strong reflected in two recent sales.
There is still a wide buyer profile seeking Belfast office
Obel Offices, let to Allen & Overy, totalling 52,169 square investment opportunities that includes UK institutional
feet has been sold, achieving just above its guide price of investors, private equity and high net worth local investors.
£15m. Metro Building, a multi let office building fronting
Donegall Square South, was also sold above its asking
ADDRESS DATE SOLD CAPITAL VALUE NIY WAULT COMPARABLE COMMENTS
Metro Building, 6-9 Donegall In excess of To expiry: 5.03 yrs
Sept 2018 c. 5.75% 50 underground car parking.
Square South, Belfast £21,000,000 TBO: 2.63 yrs
To expiry: 12.8 yrs Office let to Allen and Overy on a fixed
Obel, 68 Donegall Quay, Belfast Jul 2018 £15,200,000 6.64%
TBO: 8.2 yrs rent to TBO (Sept 2026).
8
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
ASSET MANAGEMENT OPPORTUNITIES
THE BUILDING OFFERS CONSIDERABLE ASSET MANAGEMENT OPPORTUNITIES GOING FORWARD.
1. Undertake the rent review in March 2022, we expect 4. Refurbished Grade A office space is currently achieving
there to have been sustained rental growth since March c. £21.00 psf and this growth trend is expected to
2017 with a current ERV in the order of £17.50 to continue with the lack of speculative office development
£18.00 psf. being brought forward in the city centre.
2. At lease expiry, should the Department of Communities 5. The building would also have potential for conversion
decide not to renew, there is the opportunity to to alternative use (including hotel subject to consents)
undertake a substantial refurbishment of the building. given the proximity to the city centre, transport and the
The current floor to ceiling heights and spacious double adjoining Europa Hotel. Northern Ireland is a fast growing
height reception area would permit a refurbishment tourist destination with over 1.5 million tourist visits
without the need for major redevelopment works. per annum.
3. The redevelopment of the Transport Hub will
consolidate this area as a prime central Belfast office
location for larger office buildings benefiting from
excellent transport links to Dublin.
9
December 1989 for a term of 900 years from 1 December
Great Northern Tower is held on foot of a lease dated 7
1989 at a rent of £1.00 per annum (if demanded) and has
been registered at the Land Registry of Northern Ireland
with folio number AN 167436L County Antrim. This
folio is held subject to but with the benefit of a number
of long leasehold interests at nominal rents as well as the
Europa Hotel
Planter
EMERGENCY
STAIRCASE
occupational lease to the Department for Communities.
ATM
7th to 12th Floor
CONCOURSE
MALL
LOBBY
ATRIUM
Fire hose Sign
MALL
Great Victoria Street
MH
Statue
Full title details are available in the dataroom.
Oil Storage GENERATOR
tanks ROOM
SWITCH
TELECOMS.
ROOM B.T.
ROOM
MECH.
MALL CATERING ROOM
SERVICE BULK
AREA STORE
Carpark
OFFICE
FOYER
ENTRANCE
LIFT
LOBBY
Fire hose
EMERGENCY STAIRCASE
STAIRCASE
LIFT LIFT LIFT F.F.LIFT
BIN
N.I.E. STORE
Millennium House
SUB-STATION
S_DOOR1 1ROOD_S HEADER REDAEH S_DOOR1 1ROOD_S
D_DOOR ROOD_D GLASS SSALG D_DOOR ROOD_D
S_DOOR2 2ROOD_S HEADER REDAEH S_DOOR2 2ROOD_S
S_DOOR2
D_DOOR
S_DOOR1
Europa Hotel
Planter
EMERGENCY
STAIRCASE
ATM
3rd to 6th Floor
CONCOURSE
MALL
LOBBY
ATRIUM
Fire hose Sign
MALL
Great Victoria Street
MH
Statue
GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
Oil Storage GENERATOR
tanks ROOM
SWITCH
TELECOMS.
ROOM B.T.
ROOM
MECH.
MALL CATERING ROOM
SERVICE BULK
AREA STORE
Carpark
OFFICE
FOYER
ENTRANCE
LIFT
LOBBY
Fire hose
EMERGENCY STAIRCASE
STAIRCASE
LIFT LIFT LIFT F.F.LIFT
BIN
N.I.E. STORE
Millennium House
SUB-STATION
S_DOOR1 1ROOD_S HEADER REDAEH S_DOOR1 1ROOD_S
D_DOOR ROOD_D GLASS SSALG D_DOOR ROOD_D
S_DOOR2 2ROOD_S HEADER REDAEH S_DOOR2 2ROOD_S
S_DOOR2
D_DOOR
S_DOOR1
Europa Hotel
Planter
EMERGENCY
STAIRCASE
ATM
TITLE
CONCOURSE
MALL
LOBBY
ATRIUM
Fire hose Sign
MALL
2nd Floor
Great Victoria Street
MH
Statue
The property is fully let to the Department of Communities
on a Full Repairing and Insuring lease for a term of 10
years from the 2 March 2017. The current passing rent
is £1,750,000 per annum and is subject to an open
market upward only review in Year 5. The Department for
Communities renewed their original 25 year lease in 2017.
The property is secured against the undoubted covenant
of the Department for Communities, a devolved Northern
The agreed Net Internal Area of the property contained
within the lease title is 108,790 sq ft. Fully measured
Oil Storage GENERATOR
tanks ROOM
SWITCH
TELECOMS.
Floor plates range from approx. 700 sq m to 925 sq m.
ROOM B.T.
ROOM
MECH.
MALL CATERING ROOM
SERVICE BULK
AREA STORE
Carpark
OFFICE
FOYER
ENTRANCE
LIFT
LOBBY
Fire hose
EMERGENCY STAIRCASE
STAIRCASE
LIFT LIFT LIFT F.F.LIFT
BIN
N.I.E. STORE
Millennium House
SUB-STATION
S_DOOR1 1ROOD_S HEADER REDAEH S_DOOR1 1ROOD_S
B1
D_DOOR ROOD_D GLASS SSALG D_DOOR ROOD_D
S_DOOR2 2ROOD_S HEADER REDAEH S_DOOR2 2ROOD_S
S_DOOR2
D_DOOR
S_DOOR1
Europa Hotel
Planter
EMERGENCY
STAIRCASE
ATM
CONCOURSE
MALL
LOBBY
ATRIUM
Fire hose Sign
MALL
Great Victoria Street
1st Floor
MH
Statue
Illustrative Floor Plans are as follows:
survey is available in the dataroom.
Oil Storage GENERATOR
tanks ROOM
Ireland government department.
SWITCH
TELECOMS.
ROOM B.T.
ROOM
MECH.
MALL CATERING ROOM
SERVICE BULK
AREA STORE
Carpark
OFFICE
FOYER
ENTRANCE
LIFT
LOBBY
Fire hose
EMERGENCY STAIRCASE
STAIRCASE
LIFT LIFT LIFT F.F.LIFT
BIN
N.I.E. STORE
Millennium House
SUB-STATION
S_DOOR1 1ROOD_S HEADER REDAEH S_DOOR1 1ROOD_S
B1 B2
D_DOOR ROOD_D GLASS SSALG D_DOOR ROOD_D
S_DOOR2 2ROOD_S HEADER REDAEH S_DOOR2 2ROOD_S
S_DOOR2
D_DOOR
S_DOOR1
Europa Hotel
Planter
EMERGENCY
STAIRCASE
FLOOR PLANS
PARTICULARS
ATM
CONCOURSE
MALL
LOBBY
ATRIUM
Fire hose Sign
MALL
Grd Floor
FLOOR AREA
Great Victoria Street
MH
Statue
COVENANT
TENANCY
Oil Storage GENERATOR
tanks ROOM
SWITCH
TELECOMS.
ROOM B.T.
ROOM
MECH.
MALL CATERING ROOM
SERVICE BULK
AREA STORE
Carpark
OFFICE
FOYER
ENTRANCE
LIFT
LOBBY
Fire hose
EMERGENCY STAIRCASE
STAIRCASE
LIFT LIFT LIFT F.F.LIFT
BIN
N.I.E. STORE
Millennium House
SUB-STATION
S_DOOR1 1ROOD_S HEADER REDAEH S_DOOR1 1ROOD_S
D_DOOR ROOD_D GLASS SSALG D_DOOR ROOD_D
S_DOOR2 2ROOD_S HEADER REDAEH S_DOOR2 2ROOD_S
S_DOOR2
D_DOOR
S_DOOR1
10GREAT NORTHERN TOWER - 17 GREAT VICTORIA STREET, BELFAST, BT2 7AD
SALE PROPOSAL
VAT
The property is elected for VAT and it is proposed
that the transaction will be completed by way of a
Transfer of a Going Concern.
PROPOSAL
We are seeking offers in excess of £24,000,000
(Twenty Four Million Pounds) subject to contract and
exclusive of VAT. A purchase at this level reflects a
Net Initial Yield of 6.83%, and a Reversionary Yield
of 7.64% (assuming £18.00 psf) after allowing for
standard purchaser’s costs of 6.80%.
EPC
A copy of the EPC is available in the data room.
DATA ROOM
Access to the data room is available upon request.
11For further information contact the joint agents:
Robert Millar Paul Henry
rmillar@steerforthpartners.com paul.henry@osborneking.com
T: 020 7486 2682 T: 028 9027 0027
Steerforth Limited Osborne King
4th Floor, 3-5 Barrett Street The Metro Building
St. Christopher’s Place 6-9 Donegall Square South
London W1U 1AY Belfast BT1 5JA
www.steerforthpartners.com www.osborneking.com
MISREPRESENTATION ACT 1967 The premises are offered subject to contract, availability and confirmation of details. The particulars do not form part of any contract and whilst
believed to be correct, no responsibility can be accepted for any errors. None of the statements contained in the particulars are to be relied upon as statements of fact any attending
purchasers or lessees must satisfy themselves by inspection or otherwise as to the correctness of those statements. The vendors or lessors do not make or give Osborne King and Megran
Limited & Steerforth or any person in its employment, any authority to make or give any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all
prices and rentals quoted are exclusive of any Value Added Tax to which they may be subject. These particulars are issued on the understanding that all negotiations are conducted
through this company. Osborne King & Megran Limited. Registered in Northern Ireland No. 27969. Registered Office: The Metro Building, 6-9 Donegall Square South, Belfast, BT1
5JA. Any maps / Plans based on the Ordnance Survey Map with the sanction of the controller of H.M. Stationery Office Crown Copyright Reserved Licence No. CS 369. This plan is
for convenience only. Its accuracy is not guaranteed and shall not be deemed to form part of any contract. Reproduced with the consent of Goad Cartographers Ltd, Old Hatfield.
CUSTOMER DUE DILIGENCE As a business carrying out estate agency work we are required to verify the identity of both the vendor and the purchaser as outlined in the following: The
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (http://www.legislation.gov.uk/ uksi/2017/692/made). Any information and
documentation provided by you will be held for a period of five years from when you cease to have a contractual relationship with Osborne King and Steerforth. The information will be
held in accordance with General Data Protection Regulation (GDPR) on our client file and will not be passed on to any other party, unless we are required to do so by law and regulation.You can also read
