100% Prime Rebased Bank Investment – VAT Free
Santander | 34-36 Fargate | Sheffield | S1 2HE
subject to contract
100% prime retailing pitch in Cathedral City
Undoubted income – let to Santander (Net Worth £14bn)
Rent recently rebased to 42% of previous rent, from £375,000 pa to £158,000 pa
Tenant has been in occupation for over 28 years
The only Santander Bank in Sheffield City Centre
Double fronted property
Potential future redevelopment of the upper parts, subject to planning
Price reflects a capital value of just £111 per square foot
£1,860,000, subject to contract
8% net initial yield
Sheffield is England’s fifth largest city, third largest metropolitan centre and the main commercial, administrative and retailing centre in South Yorkshire. The city is located 150 miles (240 km) north of London, 38 miles (61 km) east of Manchester, 35 miles (56 km) south of Leeds and 22 miles (35 km) south west of Doncaster.
The city of Sheffield is strategically located close to the geographical centre of the UK. The city is served well by the national motorway network, with junctions 31 to 34 of the M1 Motorway on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to key towns: to the north (Leeds, Barnsley and Wakefield) and to the south (Nottingham, Milton Keynes and London). In addition, the M18 Motorway, accessed at Junction 32 of the M1, provides direct access to the Humberside Ports. Furthermore, the A57 and M67 provide access to Manchester, approximately 38 miles (61 km) to the west.
Sheffield railway station provides direct services to many UK cities with the following approximate fastest journey times: London St Pancras 122 mins, Leeds 40 mins and Manchester 51 mins. The city benefits from a light railway service, Supertram and local bus network, making the city one of the least congested in the United Kingdom.
Sheffield will also be one of the key stations on the HS2 Northern Extension which encompasses Leeds, Manchester and an East Midlands hub between Nottingham and Derby. Manchester, East Midlands and Leeds-Bradford airports are located 47 miles (76 km), 53 miles (85 km) and 45 miles (72 km) away respectively. All provide a range of national, European and international services.
Sheffield has a strong financial presence with companies such as McLaren, Jaywing, Boeing, Sky Betting and Gaming, all recently making significant investments into the city. There is also a large public sector presence within Departments of Education & Skills, Work & Pensions and the Home Office being strong representations.
The City is home to two distinguished universities; The University of Sheffield and Sheffield Hallam University, with a combined student population of 60,000.
Sheffield is a tourism hub with an estimated 20 million tourists visiting every year. Attractions include the surrounding countryside, the Peak District, Winter Gardens and The Crucible Theatre. The population as of 2016 was over 575,000 and the city is the third largest district authority. It is projected that by 2039 the population will grow to over 650,000. [Source: www.sheffield.gov.uk].
Sheffield’s prime retailing pitch is linear, running from Fargate onto Pinstone Street and further onto the Moor.
The property occupies a 100% prime retailing position on the pedestrianised Fargate, adjacent to WHSmith and EE.
Other tenants in the immediate vicinity include Pret A Manager, Boots, Caffé Nero, Marks & Spencer, Starbucks, Greggs, Pandora, Tesco, TK Maxx, McDonald’s, Sainsbury’s and All Bar One.
There is a large representation of banking occupiers in the immediate vicinity including HSBC, Barclays, RBS, Lloyd, Virgin Money, Yorkshire Bank, Nationwide, Leeds Building Society and The Coventry Building Society.
The subject property is the only Santander Bank in Sheffield City Centre. The other branch in the city centre was closed in order to focus all operations into the subject property. The closest branch to the subject property is 4.5 miles (7.3 km) away in Meadowhall Shopping Centre with the next closest branch being 7.5 miles (12 km) away.
The Heart of the City II is the second stage of the city centres regeneration initiative which is focused around Pinstone Street and is a joint venture between the council and Queensbury. The £470m scheme will include luxury hotels and over 1.5m sq ft of retail, leisure and office accommodation. Further information can be viewed via the following link - https://heartofsheffield.co.uk.
The property comprises a double fronted retail/banking premises over ground and first floors, with ancillary accommodation across basement, second, third and fourth floors.
The property benefits from rear access.
The property has been fitted out by Santander to their usual corporate style.
The property is of Yorkshire stone construction under slate roofs and is one of the best buildings in the city centre in terms of aesthetics and position.
The property has been measured by BKR Floor Plans and provides the following accommodation:
|Sq Ft||Sq M|
|Ground Floor ITZA||1,495.5|
|Net Internal Area||Sq Ft||Sq M|
|Total Net Internal Area||14,636||1,359.68|
|Total Gross Internal Area||16,673||1,548.92|
A set of floor plans is available to download and will be re-addressed to a purchaser at a cost of £495 + VAT.
The property is not listed.
The property is fully let to Santander UK Plc, on a full repairing and insuring lease for a term of 5 years from 1st January 2021 at a passing rent of £158,000 per annum. The lease is subject to a break option at the end of the third year, subject to 6 months written notice.
The tenant has been in occupation since 1993. The most recent lease renewal took place in January 2021. As part of the lease renewal the rent was rebased down from £375,000 per annum to £158,000 per annum. The new rent is 42% of the previous rent.
As part of the lease renewal, the tenant received an incentive of 3 months’ rent free and 6 months at 50% rent. The vendor will ‘top-up’ the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.
Based on our analysis, the passing rent relfects a net effective Zone A rate of £88 per sq ft.
Santander UK Plc is a British bank wholly owned by the Spanish Santander Group and is one of the largest providers of mortgages and savings in the United Kingdom. The bank operate from over 800 branches, have approximately 20,000 employees, have over 14 million active customers and 64 corporate business centres. For further information visit www.santander.co.uk
Santander UK Plc (02294747) has reported the following figures:
|31 December 2019||31 December 2018||31 December 2017|
|Turnover Total Operating Income||£4,173,000,000||£4,534,000,000||£4,912,000,000|
|Total Net Worth||£14,091,000,000||£13,950,000,000||£14,311,000,000|
Parties are invited to refer to the following recent sales evidence for properties let to Santander:
|Feb-21||London, Chingford||Santander UK Plc||4.75 years||3.99%||£561,000|
|Feb-21||Edgware||Santander UK Plc||4.75 years||4.15%||£777,000|
|Feb-21||Wallington||Santander UK Plc||4.75 years||4.31%||£727,000|
|Feb-21||Bournemouth||Santander UK Plc||4.75 years||4.68%||£450,000|
|Feb-21||Sale||Santander UK Plc||4.75 years||5.30%||£310,000|
|Feb-21||Worthing||Santander UK Plc||5||5.51%||£460,000|
|Feb-21||Solihull||Santander UK Plc||5||5.51%||£477,000|
|Feb-21||Hampshire||Santander UK Plc||5||5.63%||£379,000|
The guide price for this investment reflects a net initial yield of 8%, with the property being located on a 100% prime retailing pitch in a major city centre. The price reflects a significant discount compared to the low yields recently achieved on properties let to Santander and in inferior locations.
The property has not been registered for VAT, therefor VAT will not be charged on the purchase price.
We are instructed to seek offers of £1,860,000 (One Million Eight Hundred and Sixty Thousand Pounds), subject to contract. This price reflects a net initial yield of 8%, assuming purchasers’ costs of 6.24%.
Please note that a purchaser will be re-charged the cost of searches and surveys which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT
Sheffield is England’s 5th largest city and 3rd largest metropolitan centre
Undoubted income from Santander UK PLC (Net Worth £14bn);
Fargate is Sheffield’s premier pedestrianised retailing thoroughfare;
The property is the only Santander Bank in Sheffield City Centre;
The tenant have recently renewed their lease;
Rent rebased from £375,000 pa to £158,000 pa;
New rent is 42% of previous rent;
An opportunity to acquire a rare freehold;
Future redevelopment potential of the upper parts, subject to planning;
Price reflects a low capital value of £111 per squate foot
Net Initial Yield of 8% represents a discount to comparable sales.
Data Room and clicktopurchase®
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