KING STREET MANCHESTER M2 6AY - PRIME MULTI-LET RETAIL INVESTMENT FOR SALE - LoopNet
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38 - 46 KING STREET
MANC HES T ER M2 6 AY
PRIME MULTI-LET RETAIL INVESTMENT FOR SALE
38 - 46 KING STREET
M A N C H E S T E R
INVESTMENT SUMMARY
INVESTMENT SUMMARY
¡ A rare opportunity to acquire three prominent prime retail units located on Manchester’s King Street, pedestrianised up-market fashion pitch.
¡ Manchester is the largest financial and business centre outside of London and is regarded as being the Capital of the North.
¡ King Street is Manchester’s primary fashion destination and offers an excellent strategic location between Spinningfields and Manchester’s traditional CBD.
¡ Let to a strong tenant line up of T.M. Lewin Ltd, Hawes & Curtis Ltd and Bravissimo Ltd providing a WAULT of 6.5 years to expiry and 5 years to
tenant break option.
¡ The combined passing base rent is £307,501 per annum.
¡ Two of the units have been let in the past two years at a modest base rent with turnover provisions providing excellent reversionary rental potential.
We have been instructed to seek offers in excess of £4,650,000 (Four Million, Six Hundred and Fifty Thousand Pounds) subject to contract and exclusive of
VAT. Assuming purchaser’s costs of 6.57%, a purchase at this level reflects a net initial yield of 6.20%, an equivalent yield of 6.1% and a reversionary yield of 6.32%.
02
38 - 46 KING STREET
M A N C H E S T E R
MANCHESTER
The City of Manchester is widely recognised as the second
largest economy in England after London. Over the last 20
years it has outperformed most other British cities and is
continually growing and evolving.
As the largest financial and business centre in England
outside London, Manchester is acknowledged as the capital
of the North. It forms the focus of economic activity in the
North West and comprises a strong mix of sectors including
banking, finance, service sector business and manufacturing.
Greater Manchester has a population totalling 2.6 million
The Lowry Hotel
people and accounts for £28 billion of the regions GDP First Street
making it one of the most successful large urban zones
outside London.
The Manchester economy is extremely diverse with an
estimated 70 of the FTSE 100 companies represented. There
are also 50 international banks and 600 major overseas
companies capitalising on the prosperity of the region.
Financial and professional services account for 56% of jobs
in Manchester, placing it in the top 30 cities in the world for
this sector.
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38 - 46 KING STREET
M A N C H E S T E R
MANCHESTER
DEMOGRAPHICS & ECONOMY
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25.4% of the population, closely followed by 23.95% in THE E HI
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the 45-64 age range and 20.89% in the 30-44 age range.
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and disposable income is at its highest. In addition home
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ownership in Manchester compares well versus other
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large cities with approximately 60% of households
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owned by their occupant, greater than London, Leeds
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and Liverpool.
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Manchester is also known for having a diverse and REET
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substantial tourism, sporting and cultural economy. ST
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Among the major attractions are Manchester United
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and Manchester City football clubs, Old Trafford Cricket
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Ground (Home to Lancashire CCC); Manchester L
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Square TOWN
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Arena (the third busiest arena in the world); The
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Halle Orchestra at Bridgewater Hall; The Imperial War ST
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Museum North; The Museum of Science and Industry
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38-46 KING STREET
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and the UK’s premier theatre scene outside of London
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with 13 theatres including Albert Hall and The Opera PICCCADILLY
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House regularly hosting West End productions.
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Prime Retail Core
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38 - 46 KING STREET
M A N C H E S T E R
RETAILING IN MANCHESTER
Manchester continues to be the strongest retail centre in the Manchester’s primary mass marketing retail
North of England and is ranked 2nd out of the UK Promis pitch is focused around The Arndale Centre,
centres, benefitting from an estimated primary catchment which attracts an estimated 41 million
area of 1.6 million people compared with the Promis 200 shoppers per annum and has approximately
centre average of 345,000 people. 150 individual shops, as well as the primary
retail pitch of Market Street.
City centre retail accommodation in Manchester is estimated
at 2.75 million sq ft, ranking the City 5th of the PROMIS King Street sits adjacent to St Ann’s Square
centres using this measure. Furthermore Manchester ranks offering easy connectivity to Market St, and
1st on the basis of PMA Retail Score and 1st on the PMA acts as a major arterial route connecting the King Street
Fashion Score, highlighting its position as a leading provider traditional CBD with Spinningfields. Over
of quality retail provision. the past few years King Street has enjoyed
a strong renaissance and continues to be
Manchester has a number of key anchor store retailers the primary upmarket fashion destination
such as Selfridges, Harvey Nichols, Marks & Spencer, in Manchester and is home to established
Debenhams, Kendals (House of Fraser), BHS and the world’s names such as Charles Tyrwhitt, Karen Millen
largest Primark store, in addition to all of the country’s The White Company, Rapha, The Kooples,
leading national multiples including Topman/Topshop, Boots, Boots, Jigsaw, Neal’s Yard, Thomas Pink, Kuoni,
Next, River Island, H&M, Apple and TK Maxx. The city also Boodles, Watches of Switzerland, Diesel,
benefits from an extremely strong and widespread high Cath Kidston and Jack Wills.
quality fashion offering, with Armani, Hugo Boss, Vivienne
Westwood, Barbour, French Connection, Reiss and Louis
Vuitton all represented.
Kendalls Harvey Nichols
05
38 - 46 KING STREET
M A N C H E S T E R
SITUATION
The subject property occupies a prime
trading location on the southern side
of King Street between Deansgate and
Cross Street. Neighbouring retailers
include Karen Millen and The Kooples
to the east, and Charles Tyrwhitt and
Planet Ladies Wear to the west.
The property has service entrances to
the rear onto South King Street.
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38 - 46 KING STREET
M A N C H E S T E R
DESCRIPTION
The property comprises three freehold retail units, with
offices above which are let on a long leasehold interest for
999 years.
The unit occupied by Hawes & Curtis (46 King Street) is
arranged over basement, ground and two upper floors and
provides floor to ceiling glazed elevations on the ground and
two upper floors.
The unit occupied by T.M. Lewin (44 King Street) is arranged
over basement, ground and first floor with tenant façade on
ground floor and double height window fenestration on the
first floor.
The unit occupied by Bravissimo (38 King Street) is arranged Subject Properties
over basement and ground floor with large glass elevations
on the frontage of the retail provision.
Above these three retail units is an office known as 40 King
Street which has its own dedicated front door entrance at
ground floor level. This element is let on a 999 year lease
to Ollier Smurthwaite Architects. Furher information on this
element is available upon request.
Bravissimo Hawes & Curtis
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38 - 46 KING STREET
M A N C H E S T E R
TENANCY SCHEDULE
The property is let to Bravissimo Limited, T.M. Lewin & Sons Limited and Hawes & Curtis Ltd with an average weighted unexpired lease term of 6.5 years to expiry and 5.5 years to break.
The property is let in accordance with the tenancy schedule below:
Lease Start Lease Break Next Current Rent p.a ERV p.a
Tenant Name Description Total Area (sq ft) Comments
Date Expiry Date Date Review (£ per sq ft ZA) (£ ZA)
The leases states a rent of £158,000 per annum
(£145 ZA) however there is a deed of variation
personal to the existing tenant which varies the rent
£100,000 to the higher of 7% of turnover or £100,000 per
ITZA: 1,027 £146,535
Bravissimo 38/38A & 42 plus Turnover Rent annum or 80% of the Turnover Rent, for the previous
Gnd Store: 167 20/01/2014 19/01/2024 20/01/2019
Ltd KING STREET turnover period.
Basement Store: 2,271 (£130 ZA)
(£85 ZA)
ERV £130 Zone A
£10 per sq ft on Ground Floor Store room
£5 per sq ft on Basement store
ITZA: 415 £107,500 £67,714 ERV £130 Zone A
T M Lewin 44 KING
1st Retail: 572 29/09/2003 28/09/2018 28/09/2018 A/10 on 1st floor retail
& Sons Ltd STREET
Basement Store: 726 (£220 ZA) (£130 ZA) £5 per sq ft on Basement store
The lease states a rent of £125,000 per annum
(£165 ZA) however there is a side letter personal to
the existing tenant which varies the rent to the higher
ITZA: 583 £100,000 of £100,000 per annum or the Turnover Rent. The
£98,907
Hawes & 46 KING Basement Retail: 1,185 plus Turnover Rent turnover rent is stated as 10% of gross turnover.
22/04/2015 21/04/2025 21/04/2020 22/04/2020
Curtis Ltd STREET 1st Floor Retail: 409
(£130 ZA) ERV £130 Zone A
2nd Store: 479 (£131 ZA)
A/10 on Basement Retail
A/10 on 1st floor retail
£5 per sq ft on 2nd floor
The upper parts are subject to a long leasehold
Ollier 40 KING 1st: 2,285
interest of 999 years. There is an agreement which
Smurthwaite STREET - Upper 2nd: 2,294 31/08/2015 31/08/3014 £1.00 £1.00
gives consent in principle to the tenant extending the
Architects office floors 3rd: 1,264
3rd floor of the building.
Total £307,501 £313,156
08
38 - 46 KING STREET
M A N C H E S T E R
COVENANT STATUS Bravissimo Limited (Company Number: 03315389)
Bravissimo is a lingerie retailer that provides lingerie and swimwear to plus sized wearers. The
T.M. Lewin & Sons Limited (Company Number: 00340508) company was founded in 1995 and operates 21 stores across the UK employing over 700 people.
T.M. Lewin was founded in 1898 as a gentleman’s shirt retailer with the opening of its first store Bravissimo has been featured in The Sunday Times best 100 companies to work for since 2007,
in Jermyn Street, London. Today the company operates 75 stores in the UK and Ireland, through most recently ranking 24th. In addition to its own lines the company also sell clothing under the
8 House of Fraser concessions and also has stores across the world. In 2015 Sankaty Advisors, an Pepperberry brand which was launched in 2011.
offshoot of private equity firm Bain Capital, bought a 20% stake in the company for approximately
31/10/2014 31/08/2013 31/08/2012
£100 million.
Turnover £54,059,000 £46,463,517 £44,672,590
28/02/2015 01/03/2014 02/03/2013 Pre-Tax Profit £4,684,806 £2,524,576 £1,766,322
Turnover £108,343,000 £104,883,000 £106,322,000 Working Capital £7,735,770 £6,230,521 £4,345,368
Pre-Tax Profit £4,272,000 £6,415,000 £6,176,000 Shareholder funds £10,592,085 £7,841,617 £6,043,721
Working Capital £57,290,000 £51,814,000 £44,715,000
Bravissimo Limited has a Creditsafe score of 72/100 reflecting very low risk.
Shareholder funds £70,342,000 £65,830,000 £59,887,000 Bravissimo are responsible for 32.5% of the rental income.
T.M. Lewin & Sons Limited has a Creditsafe score of 62/100 reflecting low risk.
T.M. Lewin are responsible for 35% of the rental income Hawes & Curtis Limited (Company Number: 03281481)
Hawes & Curtis is a British heritage clothing brand founded in 1913, operating throughout 29
stores in the UK. Hawes & Curtis celebrated their 100th anniversary in 2013, and during this
period has provided clothing for notable customers including Frank Sinatra, Cary Grant and the
Duke of Windsor.
31/12/2014 31/12/2013 31/12/2012
Turnover £26,692,000 £26,716,000 £25,732,000
Pre-Tax Profit £926,000 £1,494,000 £1,058,000
Working Capital £2,609,000 £1,512,000 £52,000
Shareholder funds £4,945,000 £4,248,000 £3,082,000
Hawes & Curtis Limited has a Creditsafe score of 72/100 reflecting very low risk.
Hawes & Curtis are responsible for 32.5% of the rental income.
09
38 - 46 KING STREET
M A N C H E S T E R
RENTAL COMMENTARY INVESTMENT COMPARABLES
We are of the opinion that the property has an Estimated Rental Value in the We have summarised a number of recent notable investment transactions in the table below:
region of £313,156 per annum reflecting £130 ITZA. There have been a number
Property Area Tenant/s Passing Rent Sale Price Yield Date
of new lettings on King Street that have occurred recently in addition to the two (sq ft)
lettings within the subject property. We have summarised recent transactions in
December
the following table: 42-46 Market St 19,429 Lloyds Bank £580,000 £13.23m 4.14%
2015
Property Occupier Rent Per Annumn Comments July
35 King St 11,767 Jack Wills £225,000 £4.1m 5.19%
(ITZA) 2015
£110,000 New 10 year lease with 9 including
20-22 King St Quill July
break at year 5 No 1 King St 62,888 Boodles and £1,077,037 £17m 5.98%
(£112 ZA) 2014
Waterstones
Neal’s Yard £75,000
27 King St New 10 year term La Tasca & June
Remedies (£127 ZA) 76-80 Deansgate 43,302 £410,701 £7.1m 5.47%
The Botanist 2015
£125,000 Assignment of lease
19 King St Jigsaw
(£143 ZA) expiring 2021
£92,500
28 King St Mint Velvet New 10 year lease
(£136 ZA)
TENURE
The Property is held Freehold.
Bravissimo Hawes & Curtis
1038 - 46 KING STREET
M A N C H E S T E R
SERVICE CHARGE EPC
All of the leases contain service charge provisions and there is a comprehensive service charge The property has the following EPC rating:
for the property.
The current service charge budget for the year ending 30/09/2016 is £34,595. 36/38 A & 42 King Street - D95
This corresponds to a figure of £2.58 per sq ft and the following figures per unit: 44 King Street - C65
46 king Street - D95
Service Charge Payable
Unit Percentage
(£ p.a) 40 King Street (upper parts) - F140
36/38A & 42 King St £7,304.87 21%
44 King St £4,054.35 11.7%
46 King St £6,322.43 18.3%
40 King St (upper parts) £16,913.34 49%
Total £34,595 100%
VAT
The property has been elected for VAT and it is anticipated that the sale be structured as a
Transfer of a Going Concern (TOGC).
Hawes & Curtis First Floor
1138 - 46 KING STREET
M A N C H E S T E R
PROPOSAL FURTHER INFORMATION
Offers are sought in excess of £4,650,000 (Four Million, Six For further information or to arrange a viewing, please contact:-
Hundred and Fifty Thousand Pounds) subject to contract and
exclusive of VAT. Assuming purchaser’s costs of 6.57%, a purchase
at this level reflects a net initial yield of 6.20%, an equivalent JAMES PORTEOUS JENNA MCINTYRE JONATHAN HEPTONSTALL
yield of 6.1% and a reversionary yield of 6.32%. 0161 238 7408 0161 828 6405 0207 318 7843
james.porteous@eu.jll.com jenna.mcintyre@eu.jll.com jonathan.heptonstall@eu.jll.com
1 Piccadilly Gardens 30 Warwick Street
Manchester London
M1 1RG W1B 5NH
© Crown Copyright 2016. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is
published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any
contract.
Disclaimer
JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general
outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition
and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third
parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise;
c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;
d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken.
© March 2016 Jones Lang LaSalle IP, Inc.You can also read
