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.
