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On the instructions of Jon Gershinson<br />
and Louisa Brooks of <strong>Allsop</strong> LLP acting<br />
as Joint Fixed Charge Receivers<br />
Milburn Quarter<br />
Dean Street<br />
Newcastle upon Tyne<br />
Mixed Use City Centre<br />
Investment Opportunity<br />
020 7588 4433
Milburn Quarter<br />
Dean Street<br />
Newcastle upon Tyne<br />
investment considerations<br />
n<br />
n<br />
n<br />
n<br />
Attractive freehold City Centre island site<br />
Mixed use investment consisting of retail, leisure,<br />
residential and offices<br />
WAULT of 5.5 years to expiry and 4.43 years to break<br />
Primarily listed buildings which are currently excluded<br />
from empty rates<br />
n Situated in a BPRA qualifying area, which gives 100%<br />
capital allowances for refurbishment and conversion costs<br />
n Significant asset management opportunities including<br />
change of use, subject to necessary planning consents<br />
n A vacancy rate of 35% gives immediate opportunities<br />
to drive net income through lettings<br />
n The estate offers income as follows:-<br />
n Gross current income: £1,039,412<br />
n Non recoverables: £267,724<br />
n Net income: £771,688<br />
Offers are sought in excess of £6,500,000 (Six Million Five<br />
Hundred Thousand Pounds) subject to contract and VAT.<br />
A purchase at this level would reflect the following:<br />
Net Initial Yield 15.11%<br />
Net Net Initial Yield 11.22%<br />
Capital Value £42.38<br />
Whilst consideration will be given to offers on the individual parts,<br />
it is the vendor’s preference to sell as a whole
Location<br />
Newcastle upon Tyne is located 280 miles north of London and<br />
109 miles south of Edinburgh. The city is the regional capital of<br />
the North East of England, with a population of approximately<br />
273,000 people (2001 Census). It forms part of the Tyneside<br />
conurbation, which with a population of in excess of 1 million<br />
people, is the seventh largest in the UK.<br />
The city is the largest office centre in the region attracting<br />
occupiers including The Sage Group Plc, Proctor & Gamble,<br />
BA, Orange, AA, GE Capital and Eaga Plc and has a total office<br />
stock in excess of 11 million sq ft with a low void rate. Large<br />
scale regeneration projects have boosted the profile of the city<br />
over the last decade and have had a knock-on effect in terms<br />
of attracting inward investment, occupiers and investors to the<br />
city. This has included the recent development of Newcastle<br />
Quayside, the Millennium Bridge, the Baltic Centre for<br />
Contemporary Art and the Sage Music Centre.<br />
The City Council are keen to progress plans to make the city a<br />
centre for science and technology. To this end the ‘Science City’<br />
scheme on the former Scottish & Newcastle Brewery site in the<br />
city centre will include up to 1,000,000 sq ft of space to house<br />
leading-edge scientific research, teaching and business facilities.<br />
This forms part of a £250 million proposal to regenerate the<br />
city’s western fringe, which has the potential to be one of the<br />
largest inner-city regeneration projects in the UK.<br />
B1311<br />
Gallowgate<br />
Forth Banks<br />
B1600<br />
Clayton St<br />
B1307<br />
Percy St<br />
NewGate St<br />
Westgate Rd A186 Westgate Rd<br />
Clayton St W<br />
A186 Neville St<br />
Newcastle<br />
CITY CENTRE<br />
Grainger St<br />
B1307<br />
Great Market<br />
Forth St<br />
Grey St<br />
Grey St<br />
New Bridge St W<br />
St Nic’s Chu<br />
Sid e<br />
Pilgrim St<br />
Close B1600<br />
rch Yard<br />
John Dobson St<br />
Dean St<br />
Collingwood St A186 Mosley St<br />
Westgate Rd<br />
St Nicholas’ St<br />
B1309<br />
Market St<br />
Durant Rd<br />
A167(M)<br />
Sandhill<br />
Queen St<br />
A167(M)<br />
A186<br />
Northumbria<br />
University<br />
School of Design<br />
Melbourne St<br />
A167 Tyne Bridge A167<br />
Pilgrim St<br />
Manors<br />
Falconar St<br />
Argyle St<br />
Simpson Terrace<br />
B1600 Quayside B1600<br />
A193 New Bridge St<br />
Clarence St<br />
Gibson St<br />
B1600<br />
Melbourne St Buxton St Howard St<br />
A186 City Rd<br />
A69<br />
A68<br />
Transport<br />
Newcastle is situated at a key point on the UK rail network<br />
with direct access to many major cities. The electrified<br />
East Coast Mainline has a travel time to London of around<br />
2hrs 45mins and less than 1hr 30mins north to Edinburgh.<br />
The region itself is well served by the Tyne & Wear<br />
Metro system, which has four stations in the city centre,<br />
including one at Grey’s Monument, around 400 metres<br />
from the property.<br />
Newcastle International Airport is the North East’s major<br />
airport offering regular scheduled services to many UK<br />
and international destinations.<br />
A68<br />
Ouston<br />
Airfield<br />
A68<br />
A69<br />
Newcastle<br />
International<br />
Airport<br />
A696<br />
Newburn<br />
A694<br />
A692<br />
A691<br />
A1<br />
Bishop<br />
A693<br />
A1<br />
Gosforth<br />
NEWCASTLE<br />
UPON TYNE<br />
A1<br />
A688<br />
A167<br />
A184<br />
Gateshead<br />
A167<br />
A1058<br />
A1 (M)<br />
A1 (M)<br />
A194<br />
Chester-le-Street<br />
Durham<br />
Whitley Bay<br />
A19 Tynemouth<br />
South<br />
Shields<br />
Jarrow<br />
A690<br />
A1300<br />
A1018<br />
A19<br />
A1231<br />
SUNDERLAND<br />
A19<br />
A1018<br />
A19<br />
A179<br />
HARTLEPOOL
24<br />
52<br />
50<br />
152<br />
LANE<br />
27<br />
14 8 6<br />
10<br />
DRURY<br />
FB<br />
29<br />
STREET<br />
ST NICHOLAS'<br />
TCB<br />
4<br />
32.0m<br />
ST NICHOLAS' MOSLEY STREET<br />
SQUARE<br />
Scottish<br />
Provident<br />
House<br />
Mon<br />
31 to 33<br />
36 44<br />
Cathedral Church<br />
of St Nicholas<br />
42<br />
32 40<br />
38<br />
34<br />
ST NICHOLAS' CHURCH YARD<br />
30<br />
28<br />
Maranar<br />
House<br />
7<br />
26<br />
Chapter Office<br />
and Library<br />
Cathedral Church<br />
of St Nicholas<br />
10<br />
ST NICHOLAS'<br />
23.8m<br />
Cathedral Buildings<br />
CHURCH YARD<br />
25 to 37<br />
DEAN STREET<br />
14<br />
23<br />
46<br />
48 42<br />
44<br />
17<br />
to<br />
21<br />
40<br />
38 34<br />
30<br />
Low Bridge<br />
Dean<br />
Court<br />
20<br />
18<br />
FB<br />
Bridge<br />
House<br />
Multistorey<br />
Car Park<br />
PILGRIM STREET<br />
Grainger<br />
Market<br />
Shelter<br />
Eldon<br />
Square<br />
Northumberland Street<br />
Grey Street<br />
University<br />
Cathedral<br />
Buildings<br />
Milburn<br />
House<br />
Central<br />
Motorway<br />
Quayside<br />
Trinity<br />
Gardens<br />
7<br />
Cathedral Church<br />
of St Nicholas<br />
Cathedral Church<br />
of St Nicholas<br />
AMEN CORNER<br />
12<br />
Hotel<br />
Painter Heugh<br />
Dean Street<br />
29.0m<br />
SIDE<br />
AMEN CORNER<br />
PH<br />
St Nicholas<br />
Chambers<br />
Milburn House<br />
DEAN STREET<br />
Posts<br />
12.5m<br />
14 10<br />
6<br />
C<br />
St Nicholas<br />
Chambers<br />
Car Park<br />
ST NICHOLAS' STREET<br />
86<br />
40 to 46<br />
The St Nicholas Building<br />
Post<br />
El Sub Sta<br />
Car Park<br />
69 to 75<br />
61<br />
SIDE<br />
LB<br />
Tyne House<br />
Central<br />
Station<br />
FB<br />
Black Gate<br />
FB<br />
© Crown Copyright, ES 100004106. For identification purposes only.<br />
Dog Leap Stairs<br />
43<br />
41<br />
39<br />
37<br />
35<br />
Situation<br />
The Milburn Quarter sits on an island site in the historical heart of<br />
the city. The immediate vicinity is steeped in history and architectural<br />
interest, located between Newcastle Cathedral and the Norman<br />
castle keep. Notable local historical figures Admiral Lord Collingwood<br />
and the engraver Thomas Bewick, both lived on the site.<br />
Newcastle Central Station, Eldon Square, the prime shopping<br />
area in the city and Newcastle Quayside are all a short walk away.<br />
Grey Street forms the very heart of the historic office core of<br />
Newcastle upon Tyne, and is home to many major occupiers<br />
including Lloyds Bank, HBOS, Go Ahead Group, NEDL, Northern<br />
Recruitment Plc and Deloitte’s. This street is also a major cultural<br />
destination with a wide range of high quality bars and restaurants,<br />
Browns and Las Iguanas being the most recent arrivals, together<br />
with the Theatre Royal which enjoys a national reputation and is<br />
the northern home of the Royal Shakespeare Company.<br />
Newcastle’s main shopping centre, Eldon Square, has an<br />
entrance opening onto the top of Grey Street, the city’s prime<br />
retail pitch which has a diverse range of retailers which include<br />
H&M, Bravissimo, Pret à Manger and Canterbury.<br />
Newcastle City Council and Brookfield are planning a major £500m<br />
retail-led redevelopment of the East Pilgrim Street area, only a short<br />
distance away. This will lead to a southward shift of the retailing core.<br />
Description<br />
The Milburn Quarter consists of five distinct assets which<br />
form an almost contiguous estate.<br />
The buildings comprise retail and restaurant units on the<br />
ground floor, with residential accommodation and office<br />
accommodation of varying states of refurbishment above.<br />
There is a small open site providing car parking for 15 cars<br />
on The Side - bordered in red, above - of the 15 spaces<br />
only one is currently let at £1,300.<br />
Office 65.75%<br />
Retail 8.26%<br />
Leisure 20.47%<br />
Residential 4.89%<br />
Vaults 0.63%
Milburn House
UP<br />
SOUTH AREA<br />
Milburn House<br />
■ WAULT of 5.59 years to expiry<br />
and 4.43 years to break<br />
■ 13.13% vacant<br />
■ 12% of the income from leisure<br />
■ Gross Income: £665,368<br />
■ Non Recoverables: £168,963<br />
■ Net Income: £496,405<br />
description<br />
Milburn House is a substantial and imposing office<br />
building occupying a prominent position, which at<br />
the time of its development in 1905, was Europe’s<br />
largest speculative office development.<br />
The building which is Grade II listed was constructed<br />
to make a statement of scale and opulence and<br />
internally has a number of distinctive features<br />
including Arts and Craft tiling and wooden panelling,<br />
whilst three substantial light wells bring lots of natural<br />
light into the space.<br />
Large areas have been fully refurbished and offer<br />
good quality open space, in particular where suites<br />
have had the central corridor removed.<br />
The building has lift access to all the main office<br />
floors with the exception of the very top floor, referred<br />
to as Upper A. Planning consent has recently been<br />
granted for conversion of this floor from offices and<br />
caretakers flat to seven letting rooms for business<br />
travellers.<br />
The current occupational profile is a mixture of larger<br />
occupiers, for example Lycetts Insurance, down<br />
to smaller single room occupiers, some of whom<br />
have taken their first step up from serviced office<br />
accommodation. The scale of the building does<br />
offer the opportunity for a landlord to offer their<br />
tenants to grow within the building. The provision<br />
of a fully serviced office offer is an obvious<br />
opportunity to enhance this.<br />
The ground floor of the<br />
property provides two<br />
restaurant units, benefitting<br />
from the building’s proximity<br />
to the Grey Street and<br />
Quayside leisure circuits.<br />
WEST AREA<br />
CENTRAL HALL<br />
NORTH AREA
Milburn House - tenancy schedule<br />
Floor Area<br />
Sq.Ft.<br />
N.Int<br />
Term<br />
From<br />
Lease<br />
To<br />
Break<br />
Current<br />
Rent p.a. £<br />
£<br />
p.s.f.<br />
Date of<br />
Next Review<br />
Next Agreed Rent/Comments<br />
Upper A Upper A Floor Void 1,813 Planning consent for the conversion to hotel rooms<br />
Upper A Floor -<br />
Caretakers Flat<br />
Mr & Mrs J Field 2,325 Electricity Only Recharged<br />
Sub Total 4,138<br />
Floor A Floor A.1 Future Transport Systems Limited 680 11/05/2010 10/05/2016 11/05/2013 £9,010.00 £13.25 11/05/2013<br />
Floor A.2 Sharon Langridge 1,200 10/08/2007 09/08/2013 £14,064.00 £11.72<br />
Floor A.3 B-Skill Limited 536 03/10/2011 01/12/2013 £6,432.00 £12.00<br />
Floor A.4,<br />
A.5 & A.6<br />
Ugo Fagandini, Philip Robson, David Gold,<br />
Christopher Reah T/A Joseph Miller & Co<br />
3,797 20/02/2006 19/02/2016 £39,330.00 £10.36<br />
Floor A.7 Colour Urban Design Limited 530 15/09/2008 £6,360.00 £12.00 Tenancy At Will<br />
Floor A.8 Void 2,330<br />
Floor A.9 Colour Urban Design Limited 1,264 01/06/2006 31/05/2012 £14,536.00 £11.50 01/06/2011 Holding over<br />
Floor A.10 Fredrick G K Egner & Mark G K Egner 909 18/03/2010 17/03/2013 £10,453.00 £11.50 Tenant Otb anytime with 3 months notice<br />
Floor A.11 Economic Research Services Limited 689 20/12/2011 19/12/2014 20/06/2013 £6,890.00 £10.00<br />
Floor A.12 Officespan Limited 685 01/07/2005 30/06/2015 01/07/2012 £7,535.00 £11.00 01/07/2012 Tenant only option break<br />
Floor A.13 Void 455<br />
Floor A.14 Admiral Public Relations & Marketing Ltd 1,385 31/03/2010 30/03/2013 31/03/2013 £16,620.44 £12.00 Rent increases to £18,698 if lease assigned<br />
Floor A.15 B-Skill Limited 1,386 02/12/2008 01/12/2013 £18,711.00 £13.50 02/12/2011<br />
Floor A.16<br />
Pantheon Macroeconomic<br />
Advisors Limited<br />
1,023 05/03/2012 04/03/2018 05/03/2014 £5,882.25 £5.75 Rent increase on 5/3/13 to £11,764.50<br />
Sub Total 16,869 £155,823.69<br />
Floor B Floor B.1 Tnei Services Limited 3,272 03/08/2007 02/08/2017 £39,264.00 £12.00 03/08/2012 Service charge capped at £13,088<br />
Floor B.2<br />
J H Boaden, J P W Green, G B Mills & M<br />
J Smith (Practising As Mills & Co)<br />
5,503 30/11/2007 29/11/2017 £66,036.00 £12.00 30/11/2012<br />
Floor B.3 SJD (North East) Limited 3,351 28/05/2008 27/05/2018 28/05/2013 £40,212.00 £12.00 28/05/2013 Tenant only option break on 6 months notice<br />
Floor B.4 Golley Slater Group Limited 2,286 04/08/2008 03/08/2018 04/08/2013 £29,718.00 £13.00 04/08/2013<br />
Floor B.5A<br />
Jonathan Hendy Boaden, Jonathan Peter<br />
Wake Green, Guy Burrell Mill, Michael<br />
John Smith T/A Mills & Co<br />
686 20/12/2011 29/11/2017 30/11/2012 £8,200.00 £11.95<br />
Floor B.6 Void 2,577<br />
Sub Total 17,675 £183,430.00<br />
Floor C<br />
Floor C1, C4,<br />
C6 & C8<br />
Lycett Browne-Swinburne &<br />
Douglass Ltd<br />
8,793 01/05/2010 30/04/2020 £80,000.00 £9.10 01/05/2015<br />
Tenant only option break on 6 months notice.<br />
Rent free period due if breaks not exercised<br />
Break exercised - Penalty of £8893.42<br />
If exercised<br />
Floor C.2 Jump Up Limited 1,470 18/02/2009 17/02/2015 £19,845.00 £13.50 18/02/2012 Tenant only option break<br />
Floor C.3 J L Harpham 480 01/12/2009 31/12/2012 £3,840.00 £8.00<br />
Floor C.5 Managers Office 490 Service charge paid through service charge<br />
Floor C.5A Void 432<br />
Floor C.6A Void 582<br />
Floor C.6B Smith Cole Wright (Newcastle) Limited 919 28/02/2011 27/02/2014 £10,500.00 £11.43 Tenant Otb anytime with 3 months notice.<br />
Floor C.7 Void 513<br />
Floor C.9 Void 3,449 09/12/2012<br />
Floor C.10 Perro Design & Communications Ltd 661 01/01/2011 31/12/2013 £8,758.25 £13.25<br />
Floor C.11 Void 584<br />
Sub Total 18,373 £122,943.25
Floor Area<br />
Sq.Ft.<br />
N.Int<br />
Term<br />
From<br />
Lease<br />
To<br />
Floor D Floor D.1 Void 3,620<br />
Floor D.2 Void 1,075<br />
Floor D.3 Janet Plater Management Limited 330 22/01/2011 21/01/2021 22/01/2016 £2,650.00 £8.03 22/01/2016 Tenant only option to break<br />
Floor D.3A Newcastle Ne1 Limited 1,290 03/05/2011 02/05/2016 £14,190.00 £11.00 Otb anytime after 3/5/12 - 6 Months Notice<br />
Floor D.4 James Richard Duckworth 590 01/08/2009 31/07/2019 31/07/2014 £4,700.00 £7.97 01/08/2014 Mutual option to break<br />
Floor D.5 Void 1,080<br />
Floor D.6B Void 1,344<br />
Floor D.7 Plus<br />
Cellar E.1<br />
David Parker 960 01/04/2008 31/03/2018 £5,000.00 £5.21 01/04/2013<br />
Floor D.8 & D6a<br />
& D11<br />
Sadler Brown Limited 3,393 27/04/2010 26/04/2016 27/04/2013 £30,845.00 £9.09 Notice to break served<br />
Floor D.9 Void 480<br />
Floor D.10 Void 3,284<br />
Sub Total 17,446 £57,385.00<br />
Floor E Floor E.2 R W Napier 480 16/02/2001 02/02/2016 £2,700.00 £5.63 02/02/2011 Uplifts on rent review limited to 10% passing rent<br />
Floor E.3 Void 940<br />
Floor E.4 Gary Simpson Wilson 475 03/05/2006 02/05/2016 £4,750.00 £10.00 03/05/2011<br />
Floor E.4A<br />
Mohinder Partrap Dhirani & Rajeev<br />
Dhirani(Edp)<br />
480 01/01/2001 31/07/2006 £2,500.00 £5.21<br />
Floor E.5 Void 452<br />
Floor E.5A Managers Store 170<br />
Floor E.6A Jeremy Benn Associates 1,260 15/04/2011 14/04/2017 15/04/2014 £10,250.00 £8.13 Tenant only option to break<br />
Floor E.6B Void 570<br />
Floor E.7 Void 2,221<br />
Floor E.7A Void 339<br />
Floor E.8 Void 998<br />
Floor E.9 Void 630<br />
Floor E.10 Void 275<br />
Floor E.11 Void 620<br />
Floor E.12A Lynn Dobson T/A Abacus Business Services 240 01/01/2012 31/12/2012 £1,466.00 £6.11 Mutual Otb anytime with 1 months notice<br />
Floor E.12 Void 365<br />
Floor E.13-15 Void 2,649<br />
Floor E.16 Void 217<br />
Floor E.17 Void 294<br />
Sub Total 13,675 £21,666.00<br />
Floor F Floor F.1 Void 2,767<br />
Floor F.2 El Torero Limited 3,500 29/04/1999 28/02/2020 £32,500.00 £9.29 29/04/2014<br />
Floor F.3A, F4 D W Walker, L A Caisley, C E Potts & W A 4,294 28/02/2008 27/02/2018 28/02/2013 £36,681.83 £8.54 28/02/2013 Tenant Otb - notice served<br />
& Vaults 1A,<br />
1B & 8<br />
Ward T/A Patterson Glenton Stracey<br />
Floor F.3B Void 1,043<br />
Floor F.5 Void 405<br />
Floor F.6 Void 720<br />
Sub Total 12,729 £69,181.83<br />
Ground Flr<br />
Restaurant &<br />
Stores 1 & 2<br />
Stephen Grieveson & Rossario Arceri 3,167 21/02/2011 20/02/2031 £43,333.33 £13.68 21/02/2016<br />
External Seating Stephen Grieveson & Rossario Arceri 19/12/2011 20/02/2031 £5,000.00 21/02/2016 Rent Free To 19/12/12 Rent Review 21/2/16, 21/2/21, 21/2/26<br />
Area<br />
Sub Total 3,167 £48,333.33<br />
Break<br />
Current<br />
Rent p.a. £<br />
£<br />
p.s.f.<br />
Date of<br />
Next Review<br />
Next Agreed Rent/Comments
Floor Area<br />
Sq.Ft.<br />
N.Int<br />
Term<br />
From<br />
Lease<br />
To<br />
Break<br />
Current<br />
Rent p.a. £<br />
Vaults Floor D Vault A Lycett Brown Swinburne & Douglass 132 01/08/2010 31/07/2012 £600.00 £4.55<br />
£<br />
p.s.f.<br />
Date of<br />
Next Review<br />
Next Agreed Rent/Comments<br />
Floor D Vault B John Blackburn T/A Jca Spencer 288 19/05/2004 N/A Tenancy at will. No charges.<br />
Floor D Vault C<br />
Floor D Vault D<br />
J H Boaden, J P W Green, G B Mills<br />
& M J Smith (Practising As Mills & Co)<br />
James Richard Duckworth<br />
T/A Freeman Rich<br />
Floor D Bin Store 163<br />
Floor E Vault 2 Void 120<br />
Floor E Vault 3<br />
Floor E Vault 4<br />
Lycett Browne-Swinburne<br />
& Douglass Ltd<br />
Charles Taylor Administration<br />
Services Ltd<br />
138 29/01/2008 N/A £1,050.00 £7.61 Tenancy at will, mutual break<br />
180 29/09/2010 28/09/2012 £600.00 £3.33 Holding over<br />
138 01/08/2010 31/07/2012 £515.00 £3.73 Holding over<br />
150 29/09/2010 28/09/2012 £525.00 £3.50 Holding over<br />
Floor E Vault 5 Tnei Services Limited 138 24/06/2010 23/06/2012 £690.00 £5.00 Holding over<br />
Floor E Vault 6<br />
& 11<br />
Messrs F & M Egner 191 01/08/2010 17/03/2013 £640.00 £3.35<br />
Floor E Vault 7 Void 119 Vault unoccupiable without large capital expenditure works<br />
Floor E Vault 9 Void 282 Vault unoccupiable without large capital expenditure works<br />
Floor E Vault 10 Gary Simpson Wilson 135 12/03/2012 11/03/2013 £540.00 £4.00<br />
Floor E Store<br />
Void<br />
Floor F Laundry 174<br />
Bank Vault Void 480<br />
Storage Spaces<br />
3 & 6<br />
Storage Space<br />
13<br />
Storage Space<br />
14 & 15<br />
Golley Slater Limited 05/08/2008 N/A £400.00 Tenancy at will, one months mutual option to terminate<br />
Lynn Dobson T/A Abacus Business<br />
Services<br />
01/01/2012 31/12/2012 £144.00 Holding over<br />
Smith Cole Wright (Newcastle) Limited 17/05/2012 £1.00 Tenancy at will, one months mutual option to terminate<br />
Storage Space 24 Joseph Miller & Company Limited 02/11/2009 N/A £750.00 Tenancy at will, one months mutual option to terminate<br />
Storage Space 18 Janet Plater Management Limited 23/03/2004 N/A £150.00 Tenancy at will, one months mutual option to terminate<br />
Storage Space 22<br />
Wall Mounted<br />
Street Lighting<br />
Void<br />
City Of Newcastle Upon Tyne<br />
Sub Total 2,828 £6,605.00<br />
Total 106,900 £665,368.10<br />
One months notice to terminate by either side<br />
Service Charge<br />
The last three service charge years are as follows:<br />
Budget<br />
Actual<br />
2009 £385,000 £385,043<br />
2010 £387,000 £349,013<br />
2011 £387,000 £330,908<br />
Non Recoverable Costs<br />
The latest service charge accounts for the building run<br />
from 25 December 2010 to 24 December 2011 and total<br />
£330,908 with total non recoverable costs of approximately<br />
£168,963.48.
Cathedral<br />
Buildings<br />
■ WAULT of 4 years to expiry<br />
and 3 years to break<br />
■ 48.57% of income is retail and leisure<br />
■ 27.11% is vacant<br />
■ Gross Income: £159,957<br />
■ Non Recoverables: £31,189<br />
■ Net Income: £128,768<br />
description<br />
Cathedral Buildings is a particularly imposing building<br />
dating from 1905, in the free baroque style, with<br />
extensive frontage on to Dean Street. The property<br />
is home to a long established Italian restaurant and<br />
other retail accommodation on ground floor, with<br />
office accommodation on the five floors above.<br />
The building is Grade II listed.<br />
The office accommodation is of relatively basic<br />
specification, though does have lift access to all<br />
floors. Given its extensive frontage and low depth,<br />
the building does offer excellent levels of natural light.<br />
This building exhibits the strong potential for change<br />
of use, with residential, boutique hotel or apart-hotel<br />
being potential candidates.
CATHEDRAL BUILDINGS - tenancy schedule<br />
Address Tenant Floor Area<br />
Sq.Ft.<br />
N.Int<br />
Term<br />
From<br />
Lease<br />
To<br />
Break<br />
Current<br />
Rent p.a. £<br />
£<br />
p.s.f.<br />
Date of<br />
Next Review<br />
Next Agreed Rent/Comments<br />
Retail<br />
27/29 Dean<br />
Street<br />
Sounds Live (Newcastle) Limited 3,253 01/05/2011 30/04/2021 01/05/16 £30,210.00 £9.29 01/05/2016 Tenant only option to break<br />
Retail 25 Dean Street Ali Tabet 1,215 04/12/1995 03/12/2015 £14,000.00 £11.52 04/12/2010 Assigned from Houshang Memari 17/02/06<br />
Retail<br />
33,35 & 37<br />
Dean Street<br />
Offices First Floor 1.1<br />
Minel Leisure Limited 2,484 02/02/1995 01/02/2016 £32,800.00 £13.20 02/02/2011<br />
N Davison & G Davison practising as<br />
Housemans Solicitors<br />
1,710 25/03/2012 24/03/2017 £12,000.00 £7.02 Mutual OTB anytime after 29/3/12 with 6 months notice<br />
Offices First Floor 1.2 Architects Design Partnership LLP 2,225 01/04/2008 31/03/2013 £22,250.00 £10.00<br />
Offices Third Floor 3.1 Void 1,975<br />
Offices<br />
Third & Second<br />
Floors 3.2 & 2.1<br />
& Basement<br />
The Environmental Consultancy Limited 5,925 01/04/2010 31/03/2015 01/04/13 £31,717.00 £5.35 Rent increases 1/4/13 to £54,373<br />
Storerooms<br />
Offices Fourth Floor 4.1 Void 536<br />
Offices Fourth Floor 4.3 Void 1,575<br />
Offices Fourth Floor 4.4 Robinson Landscape Design Limited 520 11/10/2011 10/10/2012 £4,680.00 £9.00<br />
Offices Fourth Floor 4.5 Void 538<br />
Offices Fourth Floor 4.6 Void 315<br />
Offices Fifth Floor 5.1<br />
Charles Taylor Administration<br />
Services Limited<br />
Offices Fifth Floor 5.2 Void 495<br />
Offices Fifth Floor 5.3 Void 1,466<br />
1,222 25/12/2005 24/12/2015 £11,000.00 £9.00<br />
Car Park 1 space Sadler Brown Limited 24/06/2010 23/06/2012 £1,300.00 Holding over and notice served on lease<br />
Car Park 14 spaces Void<br />
Total 25,454 £159,957.00<br />
Service Charge<br />
The last three service charge years are as follows:<br />
Budget<br />
Actual<br />
2009 £77,000 £76,915<br />
2010 £76,000 £67,842<br />
2011 £73,500<br />
2012 £84,000<br />
Non Recoverable Costs<br />
The latest budgeted service charge accounts for the building<br />
run from 1st January to 31st December and total £84,000<br />
with total non recoverable costs of approximately £31,189.
St Nicholas<br />
Chambers<br />
■ WAULT of 16.22 years to expiry<br />
and 14.57 to break<br />
■ 84.18% of the income is retail or leisure<br />
■ 45% of the building is vacant<br />
■ Gross income: £144,887<br />
■ Non recoverables: £67,572<br />
■ Net Income: £77,315<br />
description<br />
St Nicholas Chambers was constructed in 1881<br />
and provides a mix of office, retail, restaurant and<br />
bar accommodation over six levels. The property is<br />
within a conservation area, but is not listed.<br />
The upper floors are arranged as individual office<br />
suites, providing predominantly cellular office<br />
accommodation of a relatively basic standard, but<br />
benefit from lift access.<br />
The property is an attractive building in a reasonable<br />
central office pitch, but also has potential to change<br />
of use of the upper floors to residential or hotel,<br />
subject to the necessary consents.
St Nicholas Chambers - tenancy schedule<br />
Address Tenant Floor Area<br />
Sq.Ft.<br />
Term<br />
From<br />
Lease<br />
To<br />
Break<br />
Current<br />
Rent p.a. £<br />
£<br />
p.s.f.<br />
Date of<br />
Next Review<br />
Next Agreed Rent/Comments<br />
Lower Ground/Basement<br />
Floor, The Side<br />
Enhancement One Limited 2,366 08/03/2010 07/03/2025 17/03/2013 £20,000.00 08/03/2015 Rent increased to £25,000 on 08/03/13<br />
Lower Ground Floor,<br />
and Cellar, The Side<br />
Unique Pub Properties Limited 2,202 02/01/1988 01/01/2038 £80,000.00 £36.33 02/01/13 Privity of Contract with Bass Holdings plc<br />
Ground Floor Suites 1 - 5 Void 1,584<br />
Ground Floor Suites 6 - 7 Skullduggeri Limited 1,675 25/11/2010 06/12/2012 £22,000.00 £13.13 Rent Guarantee - Alison Dalgleish and Emma Clarkson.<br />
First Floor Suites 1, 2, 4, 4a,<br />
7 & 8<br />
Void 1,155<br />
First Floor Suites 5 & 6 Void 392<br />
First Floor Suites 9 - 13 Absolute Image Limited 1,580 01/10/2007 01/08/2014 £21,000.00 £13.29<br />
Second Floor Suites 1 - 4 Void 822<br />
Second Floor Suites 9, 10,<br />
10a, 10b<br />
Void 880<br />
Second Floor Suites 11 - 13 Void 687<br />
Third Floor Suites 9 - 10b Void 849<br />
Third Floor Suites 11 - 14 Void 555<br />
Caretakers Flat Occupied by Edward Money (Caretaker) 630 £1,887.00 £2.99 Caretakers Flat (Part of salary package) paid by Service Charges<br />
Total 15,377 £144,887.00<br />
Service Charge<br />
The last three service charge years are as follows:<br />
Budget<br />
Actual<br />
2009/2010 £56,850 £37,790<br />
2010/2011 £48,000 £42,093<br />
2011/2012 £42,800<br />
Non Recoverable Costs<br />
The latest budgeted service charge accounts for the building<br />
run from 6th April to 5th April and totals £42,800 with total<br />
non recoverable costs of approximately £28,230.<br />
Empty rates are running at £85,900 with rates payable<br />
equating to approximately £39,342.
17 - 21 Dean Street<br />
■ 71% of the income generated from residential<br />
with all tenants holding over<br />
■ 1 vacant residential unit<br />
■ 29% of the income is retail with over 7 years unexpired<br />
description<br />
This property, whilst adjacent to Milburn House, provides a<br />
physically distinct property providing retail accommodation<br />
on ground floor and basement, with seven apartments above.<br />
The building is Grade II listed.<br />
The apartments, of which three are two bed and four are one bed,<br />
are nearly fully let at rents of £600 - £900 pcm.<br />
Flats 17 A/B/C are all accessed from Dean Street and situated over<br />
first, second and third floors. Flats 21 A/B/C/D are all accessed<br />
from Amen Corner to the rear of Dean Street and situated over first,<br />
second, third and fourth floors.<br />
Non Recoverable Costs<br />
The day to day management is undertaken by the care<br />
taker at St Nicholas Chambers therefore the minimal cost<br />
falls within the service charge of St Nicholas Chambers.<br />
Address Tenant Area Lease Start Lease Expiry Rent PA Comments<br />
Ground Floor / Basement Lydia’s House 1,482 08/01/2010 07/01/2020 £20,000.00 Rent increase 8/1/15 to £21,000<br />
Apartment 17A (1 Bedroom) Individual 532 03/08/2011 02/02/2012 £7,200.00 Rental Deposit Paid. Holding over month to month<br />
Apartment 17B (1 Bedroom) Individual 428 08/08/2011 07/08/2012 £7,200.00 Rental Deposit Paid<br />
Apartment 17C (2 Bedroom) Vacant 418<br />
Apartment 21A (2 Bedroom) Individual 638 26/09/2011 25/05/2012 £9,600.00<br />
Apartment 21B (1 Bedroom) Individual 578 02/06/2010 01/12/2010 £7,200.00 Rental Deposit Paid. Holding over month to month<br />
Apartment 21C (1 Bedroom) Individual 614 03/01/2009 02/07/2010 £7,200.00 Rental Deposit Paid. Holding over month to month<br />
Apartment 21D (2 Bedroom) Individual 968 02/02/2011 01/02/2012 £10,800.00 Rental Deposit Paid. Holding over month to month<br />
Total 5,658 £69,200.00
Market Commentary<br />
The city centre office market in Newcastle is physically<br />
constrained by both tight boundaries and the proportion of<br />
historic buildings. Partly as a consequence of this and the<br />
conversion of a number of secondary buildings to hotel use,<br />
the vacancy rate is one of the lowest in the country. Rents have<br />
held up well, with recent lettings of Grade A space of 11,360<br />
sq ft to Beachcroft at £21.50 psf and good Grade B lettings<br />
at Maybrook and Gainsborough Houses at £15 - £16 psf, all<br />
reflecting levels only marginally off the top of the market.<br />
As a result of a relative undersupply of hotel rooms, the city<br />
enjoys one of the best occupancy rates (75%+) and RevPar’s<br />
(£50+) in the regions. A number of operators have taken<br />
advantage of the valuable Business Premises Renovation<br />
Allowances (BPRA) to convert buildings and there remain<br />
requirements and opportunities in this sector.<br />
VAT<br />
The property will be subject to VAT, although we anticipate<br />
the sale will be treated as a Transfer of a Going concern.<br />
Tenure<br />
Freehold<br />
DATAROOM<br />
A dataroom is available, access to which can be granted<br />
on request.
Residential<br />
Proposal<br />
Offers are sought in excess of £6,500,000 (Six Million Five Hundred Thousand Pounds) subject to contract and VAT.<br />
A purchase at this level would reflect the following:-<br />
Net Initial Yield 15.11% Net Net Initial Yield 11.22% Capital Value £42.38<br />
Whilst consideration will be given to offers on the individual parts, it is the vendor’s preference to sell as a whole.<br />
For further information or to make arrangements for viewing please contact:<br />
Commercial<br />
<strong>Allsop</strong><br />
David Hammond<br />
020 7543 6721<br />
david.hammond@allsop.co.uk<br />
www.allsop.co.uk<br />
<strong>Allsop</strong><br />
Guy Scott Plummer<br />
020 7543 6726<br />
guy.scott-plummer@allsop.co.uk<br />
Residential<br />
<strong>Allsop</strong><br />
James Wilson<br />
0113 236 6679<br />
james.wilson@allsop.co.uk<br />
DTZ<br />
Richard Turner<br />
0191 223 5720<br />
richard.turner@dtz.com<br />
DTZ<br />
Chris Donabie<br />
0191 223 5809<br />
chris.donabie@dtz.com<br />
020 7437 6977<br />
www.dtz.com<br />
Misrepresentation Act: 1. <strong>Allsop</strong> LLP and DTZ on its own behalf and on behalf of the vendor/lessor of this property whose agent <strong>Allsop</strong> and DTZ is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars<br />
as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither <strong>Allsop</strong> or DTZ nor any of their members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property.<br />
The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants<br />
are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental)<br />
survey of the property; and (e) carry out all necessary searches and enquiries. <strong>Allsop</strong> is the trading name of <strong>Allsop</strong> LLP. DTZ is the trading name of DTZ Debenham Tie Leung Limited. 10.12