Property Auctions 11/Dec/2014 | Essex House, Manor Street, Kingston upon Hull, East Riding of Yorkshire, HU1 1YU

Freehold Office Investment with Residential Planning Consent

Prime City Centre Location
Majority let to Clearanswer Call Centres Limited until September 2024 (subject to option)
PDR consent granted for 40 residential flats on upper floors (see planning paragraph)
Approximately 6,540 sq m (70,401 sq ft) accommodation with on-site car parking

Lot 11
Auction 11th December 2014
Rent £187,418 per Annum Exclusive
Status Withdrawn Post
Price
Sector
Office
Auction Venue
The Millennium Hotel
44 Grosvenor Square
London W1K 2HP

Property Information

Location

Miles: 40 miles south-east of York; 55 miles east of Leeds; 65 miles north-east of Sheffield
Roads: A165, A63, A1003, A15, M180, M62
Rail: Kingston-Upon-Hull Railway Station
Air: Humberside, Leeds International

Situation

The property is situated in a prominent corner location within Hull City Centre in an established business location at the junction of Manor Street and Alfred Gelder Street.
The property is within a short walk of Princess Quay Shopping Centre, St Stephen’s Shopping Centre and Hull Railway Station.

Tenure

Freehold.

Location

Miles: 40 miles south-east of York; 55 miles east of Leeds; 65 miles north-east of Sheffield
Roads: A165, A63, A1003, A15, M180, M62
Rail: Kingston-Upon-Hull Railway Station
Air: Humberside, Leeds International

Situation

The property is situated in a prominent corner location within Hull City Centre in an established business location at the junction of Manor Street and Alfred Gelder Street.
The property is within a short walk of Princess Quay Shopping Centre, St Stephen’s Shopping Centre and Hull Railway Station.

Tenure

Freehold.

Description

The property, constructed in the late 1970s, comprises a modern ground floor reception area with office accommodation over ground and first to ninth floors. The property benefits from male and female WCs on each floor, three passenger lifts serving all floors and uninterrupted 360 degree views of the city on the fifth to ninth floors, which also benefit from PDR consent for 40 residential flats (see planning paragraph).
Please refer to the legal pack for further information on recent refurbishment of the property.

Planning
Hull City Council confirmed on 18th September 2014 that, under the Town and Country Planning Order 2013, no prior approval is required for the change of use of the fourth floor from office use to 15 flats and for the change of use of the fifth to ninth floors from office to 25 flats. Please refer to the legal documentation for further information and indicative layout plans.

Six Week Completion

VAT

VAT is applicable to this lot.

Viewings

There will be block viewings for this property. Interested parties must register their details with the Auctioneers and provide identification on site.
Please contact Gwen Thomas. Telephone: +44 (0)20 7034 4857.

EPC

The EPC will be available to view online in the solicitor’s legal pack.

Description

The property, constructed in the late 1970s, comprises a modern ground floor reception area with office accommodation over ground and first to ninth floors. The property benefits from male and female WCs on each floor, three passenger lifts serving all floors and uninterrupted 360 degree views of the city on the fifth to ninth floors, which also benefit from PDR consent for 40 residential flats (see planning paragraph).
Please refer to the legal pack for further information on recent refurbishment of the property.

Planning
Hull City Council confirmed on 18th September 2014 that, under the Town and Country Planning Order 2013, no prior approval is required for the change of use of the fourth floor from office use to 15 flats and for the change of use of the fifth to ninth floors from office to 25 flats. Please refer to the legal documentation for further information and indicative layout plans.

Six Week Completion

VAT

VAT is applicable to this lot.

Viewings

There will be block viewings for this property. Interested parties must register their details with the Auctioneers and provide identification on site.
Please contact Gwen Thomas. Telephone: +44 (0)20 7034 4857.

EPC

The EPC will be available to view online in the solicitor’s legal pack.

Tenancy & Accommodation

Floor	Use	Floor Areas (Approx)		Tenant	Term	Rent p.a.x	Reviews/(Reversions)
Ground (Unit 1)	Office	309.83 sq m	(3,335 sq ft)	BUSINESS ADVICE DIRECT LIMITED (1)/ CLEARANSWER CALL CENTRES LIMITED (2)	3 years from 02/09/2013 with reversionary lease agreed (3)	£13,207	(24/09/2024)
Ground (Unit 2)	Office	549.80 sq m	(5,918 sq ft)	CLEARANSWER CALL CENTRES LIMITED (2)	Term until 24/09/2024 (3)	£23,435	(24/09/2024)
First (part 1) First (part 2) Second (small wing) Second (large wing) Third (small wing) Third (large wing)	Office Office Office Office Office Office	409.70 sq m 736.16 sq m 423.08 sq m 738.11 sq m 421.59 sq m 516.63 sq m	(4,410 sq ft) (7,924 sq ft) (4,554 sq ft) (7,945 sq ft) (4,538 sq ft) (5,561 sq ft)	CLEARANSWER CALL CENTRES LIMITED (2)	Six separate leases for 10 years from 01/08/2014 (4)	£17,464 £31,379 £18,034 £31,462 £17,970 £22,022	(24/09/2024) (24/09/2024) (24/09/2024) (24/09/2024) (24/09/2024) (24/09/2024)
Fourth (small wing) Fourth (large wing) Fifth Sixth Seventh Eighth Ninth	Office Office Office Office Office Office Office	423.17 sq m 518.95 sq m 298.68 sq m 298.68 sq m 298.68 sq m 298.68 sq m 298.68 sq m	(4,555 sq ft) (5,586 sq ft) (3,215 sq ft) (3,215 sq ft) (3,215 sq ft) (3,215 sq ft) (3,215 sq ft)	VACANT POSSESSION – PDR CONSENT FOR 40 RESIDENTIAL FLATS. REFER TO PLANNING PARAGRAPH
Roof	Telecoms Aerial			VODAFONE LIMITED	20 years from 31/10/2006 until 30/10/2026	£12,441	31/10/2016
Ground	Substation			YORKSHIRE ELECTRICITY	60 years from 01/09/1973	£5	(31/08/2033)
Totals		6,540.42 sq m	(70,401 sq ft)			£187,419

(1) For the year ending 31/03/2012, Business Advice Direct Limited reported a turnover of £3,111,742, pre-tax profits of £1,330,965 and a total net worth of £1,268,520. (Source: www.riskdisk.com 28/10/2014)
(2) For the year ending 31/10/2013, Clearanswer Call Centres Limited reported a turnover of £13,745,921, pre-tax profits of £2,233,960 and a total net worth of £2,936,616. (Source: www.riskdisk.com 28/10/2014)
(3) The current lease for Unit 1 is to Business Advice Direct for a term of 3 years from 02/09/2013 until 28/09/2016 with a tenant option to determine on 28/09/2015 at a rent of £5,000 p.a.x. rising to £7,000 p.a.x. in 2015. Clearanswer Call Centres Ltd have taken a 10 year lease of the entire ground floor (Unit 1 at £13,207 p.a.x. and Unit 2 at £41,284 p.a.x.) to commence from the expiry of Business Advice Direct Ltd’s lease of Unit 1 (either at the end of the lease or at the break option) until 24/09/2024 with an option to determine on 29/09/2020. The vendor will top up the rent on Unit 1 & Unit 2 to produce a total £13,207 p.a.x. and £23,435 p.a.x. for the respective demise up until the expiry of the Business Advice Direct lease (be that the tenant break option in September 2015, or lease expiry in September 2016). In relation to Unit 2 the Vendor will also provide a business rates and service charge guarantee up to the expiry of the Business Advice Direct lease.
Please refer to the legal pack for further details.
(4) The lease provides an option to determine on 29/09/2020.