Highly Secure Bank Investment
73 Deansgate & 23 Oxford Street | Bolton | BL1 1HQ
subject to contract
5.5 years of undoubted income to Nationwide Building Society
The only Nationwide in Bolton
Triple Aspect building - Two return frontages in a prime retailing pitch
Self-contained upper parts with repurposing potential, subject to planning
Rent rebased to £130,000 per annum from £180,000 per annum
£1,550,000, subject to contract
8% Net Initial Yield
Bolton is a major regional centre in the North West of England within the Greater Manchester conurbation. The town is approximately 12 miles (19.3 km) to the north west of Manchester city centre, 19 miles (30.5 km) north east of Warrington and 21 miles (33.8 km) south east of Preston.
The town benefits from excellent road communications and is situated between the M61 to the west, M66 to the east and M65 to the north (via the A666). The M61 ad M66 in turn provide access to Junctions 14 and 18 to the M60 motorway.
There is a regular and direct rail service between Bolton and Manchester Victoria with an approximate journey time of 25 minutes. London Euston can be accessed via Wigan or Manchester Piccadilly with a fastest journey time of approximately 2 hours and 30 minutes.
Manchester International Airport is approximately 21 miles (33.8 km) to the south east.
Bolton is a large sub-regional retailing centre with a primary catchment of approximately 660,000 people and a shopping population of approximately 235,000 (Source: www.bolton.gov.uk). The University of Bolton has approximately 6,000 students (Source: www.bolton.ac.uk).
Retail in Bolton is focused around the axis formed by Deansgate, Knowsley Street, Newport Street and Churchgate, a large proportion of which is pedestrianised. Deansgate, Oxford Street, Newport Street, Market Place and Market Street are the busiest parades in the town.
A £1.2bn regeneration programme comprising of large and small scale investment initiatives is on course to be completed by 2030. The regeneration programme will provide approximately 1,700 homes and 4,400 full time equivalent jobs, injecting a projected £487.5m of gross value added additional economic activity to the town. Listed below are some of the larger scale initiatives:
A £35m development by Forshaw Land & Property Group for 258 one and two-bed apartments and four, three-storey town houses at Pool Street and Bark Street. Plus a £30m development from Manchester-based private rental specialist developer Placefirst to create Bolton’s first build-to-rent (BtR) urban village around Central Street. Placefirst also proposes up to 15,000 sq.ft (1,394 sq.m) of Grade A office space and ground floor commercial units along Deansgate.
International property investment, development and construction company Beijing Construction Engineering Group International (BCEGI) has partnered with real estate investment and development specialist Midia to form a joint venture called Bolton Regeneration Limited (BRL). They will bring forward a circa £250m redevelopment of Crompton Place shopping centre and the surrounding area while opening up the area to provide pedestrian links to Bradshawgate. Having recently secured planning permission, the project offers 170,000 sq.ft (15,794 sq.m) of office space, 150 homes, a 110-bedroom hotel and retail, leisure, dining and events space.
Muse Developments plans a £150m riverside neighbourhood, featuring 352 new homes including townhouses and apartments, up to 7,500 sq.m (80,729 sq.ft.) of office space plus retail, professional services and community facilities and potential for an 80-bedroom hotel and 176 parking spaces.
A £40m scheme by Midia to provide a 20-storey tower of 144 rental apartments, 500 space multi-storey car park, a 3,600 sq metre office block and 15,000 sq ft of public realm next to Bolton’s £48m transport interchange.
A super connected ‘digital city’ will be created to place Bolton at the centre of the digital economy. The development will take place on a 7.3-hectare (18 acres) site around the Blackhorse Street area, adjacent to Bolton’s central railway station, and will be delivered via a joint venture with a private developer.
Development specialist Midia has secured permission for a £33m scheme to convert the Grade Two-listed former magistrates court on Le Mans Crescent into a boutique, 87-bedroom hotel and 17 serviced apartments.
A large £300 million development with the University of Bolton at its core.
Bolton Council is progressing multi-million pound bids to the Government’s Future High Street Fund and Towns Fund, contributing a potential £75m to regeneration projects across the borough.
Bolton’s £48m interchange has recently opened which replaces the bus station on Moor Lane.
The property occupies a prime position in the heart of the town centre with one return frontage onto the junction of Deansgate and Oxford Street and another return frontage onto Deansgate and Old Hall Street. This is the only Nationwide in Bolton with the closest other branches being in Worsely Manchester, 5.2 miles (8.4km) away, and in Bury, 6.8 miles (11km) away.
The property sits opposite a large McDonald’s on one corner of the junction, a Caffe Nero on the other and a Greggs on the last.
Other occupiers in the immediate vicinity include Beales Department Store, Post Office, EE, Superdrug, Three, Sally, RBS, Santander, Wilko and a large Marks and Spencer department store.
The property is 170 metres from the newly refurbished Market Place Shopping Centre which is occupied by a wide range of businesses including Pandora, Boots, The Body Shop, Hotel Chocolate, Zara, River Island, JD Sports, Nando’s, Prezzo and The Light Cinema.
Deansgate is a primary access route to Market Place Shopping Centre from the bus and train stations resulting in a high footfall directly outside the property.
The property comprises a triple aspect four-storey retail banking unit arranged over basement, ground, first, second and third floors.
The property has frontages onto Oxford Street, Deansgate and Old Hall Street. The main entrance is at the corner of Deansgate and Oxford Street and the secondary entrance is at the corner of Deansgate and Old Hall Street.
The ground floor provides an open banking hall fitted out to the tenant’s usual corporate style. The first floor is used for customer meetings and interviews as well as ancillary and staff accommodation. The basement is used as ancillary storage.
The second and third floors benefit from their own independent access from Oxford Street and currently comprise of vacant self-contained offices and are within the demise of the tenant.
We believe there is potential to convert the second and third floors to residential accommodation.
The property has been measured by BKR Floor Plans and provides the following Net Internal floor areas:
|Net Frontage||31.7 m||104|
|Gross Frontage||48.77 m||160|
|Zone A||101.54 sq m||1,093 sq ft|
|Zone B||98.10 sq m||1,056 sq ft|
|Zone C||0.56 sq m||6 sq ft|
|Ground Floor ITZA||1,622.5 units|
|Total Ground Floor||200.20 sq m||2,155 sq ft|
|First Floor||180.50 sq m||1,943 sq ft|
|Second Floor||212.74 sq m||2,290 sq ft|
|Third Floor||199.55 sq m||2,148 sq ft|
|Basement||208.75 sq m||2,247 sq ft|
|Total||1,001.74 sq m||10,783 sq ft|
The total Gross Internal Area is 14,389 sq ft / 1,336.74 sq m.
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £485 + VAT.
The entire property is let to Nationwide Building Society on a full repairing and insuring lease for a term of 10 years from 31st January 2017, expiring on 30th January 2027 with no break clauses.
Therefore, there are just under 5.5 years remaining on the lease.
The current passing rent is £130,000 per annum which, based on our analysis, equates to a Zone A rate of £80 per sq ft.
There is an upwards only rent review in January 2022.
The rent was rebased from £180,000 to £130,000 in 2017.
The property is sold with a dilapidations report in the sum of £500,000.
Nationwide Building Society has reported the following figures:
|April 2020||April 2019|
|Total Interest Income||£2.810 billion||£2.915 billion|
|Pre-Tax Profits||£466 million||£833 million|
Nationwide Building Society is a British Mutual Financial organisation and the largest building society in the world with over 600 branches. Founded in 1846 in the United Kingdom, Nationwide is the second largest provider of savings and mortgages and has a 7.1 marked share of all the current accounts in the United Kingdom. For further information, please visit www.nationwide.co.uk.
The second and third floors are currently offices demised to the tenant but are not being occupied by the tenant.
We assess the passing rent attributable to the self-contained second and third floors at approximately £13,000 per annum. Based upon the asking yield of 7.00% in relation to an apportioned rent for the retail of £117,000, this allocates a purchase price to this area of the property at only £175,000 which equates to only £41 per sq ft on the net internal area. In comparison, the average sale value for flats in Bolton is £148,000 and £157 per sq ft (Source: www.zoopla.co.uk).
Subject to consents, it is suggested that the upper floors could potentially provide for residential accommodation with an exit values significantly in excess of the apportioned purchase price for this element of the property.
In March 2013, the adjoining property (17-21 Oxford St) was granted planning permission to convert the upper floors into nine one-bed flats. This development has now been completed. Planning reference number: 89160/12.
In October 2019, 4-6 Oxford Street obtained permitted development to change the use of the first and second floors into two flats. Planning reference number: 07044/19.
Alternatively, should the upper parts be refurbished, we believe the office space would achieve a rental in the region of £7 per square foot totalling an ERV of £29,631.
The property is not listed.
The property has been registered for VAT. It is anticipated that the sale of this property will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek a figure of £1,550,000 (One Million Five Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 8%, assuming standard purchaser’s costs of 6.12%.
Please note that a purchaser will be re-charged the costs of surveys and searches which are provided in the data room.
Please note that a purchaser will be charged a Transaction Fee of £5,000 plus VAT.
The property occupies a prime position in the city centre with 2 return frontages;
Rent has been rebased down to £130,000 per annum;
5.5 years unexpired;
Upwards only rent review in January 2021;
Undoubted income - let to Nationwide (Pre-Tax Profits of £466 million);
The only Nationwide in Bolton;
Potential to redevelop the upper parts subject to planning permission;
Attractive lot size to an investor.
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