Pearl House, Huddersfield

Description

INVESTMENT SUMMARY

Prominently located property in Huddersfields retail and leisure core.

Secure income against the substantial covenants of Wetherspoon's, Power Leisure Bookmakers Ltd (UK) (Paddy Power) and Fusion Housing Ltd.

WAULT to lease expiries 13.6 years (6.68 years to break clauses)

999 year lease from 1918

Recently refurbished building including new roof, new windows and refurbished internal offices

Offers over £2,100,000

Net initial yield 8% after purchasers costs of 6.8%

LOCATION

The property is located on John William Street close to its junction with Westgate, Kirkgate and Market Place immediately adjacent to Pizza Hut and McDonalds and opposite Nandos.

John William Street is the core of the leisure circuit in Huddersfield and benefits from being a short walk from Huddersfield Mainline Station and close to the Town's principle car parks.

Huddersfield is the 11th largest Town in the UK with a population of 168,698 people (2015 Census).

The Town lies halfway between Leeds and Manchester close to the M62 motorway at junction 24.

Huddersfield Railway Station is a Grade 1 listed building which was renovated at a cost of £4m and won an award for European Architecture.

Huddersfield is a manufacturing Town however, the University is the largest single employer with world leading applied research groups in Bio Medical Sciences, Engineering and Physical Sciences.

The Town is ranked 59 in the Countries National Retail Rankings making it a top 100 location and in 2011 a substantial redevelopment and expansion of the Kingsgate Centre reinforced Huddersfield's retail core providing 300,000 sq. ft. of high quality retail space.

DESCRIPTION

Pearl House comprises ground floor leisure space with 4 upper floors of good quality office accommodation.

The property is of concrete frame construction under a flat felt roof and has recently undergone complete refurbishment including re-roofing and replacement of the windows with aluminium framed double glazed units and a refurbishment of the internal office space to provide good quality office accommodation.

The building has a car park at basement level accessed from Wood Street and providing 6 car spaces.

The ground floor has been fully fitted out by Wetherspoon's to provide a large bar and restaurant and Power Leisure Bookmakers Ltd who trade as Paddy Power Bookmakers.

ACCOMMODATION

The property provides the following accommodation: -

TENANT	FLOOR	USE	SQ FT	SQ M
Wetherspoons	Ground	Bar	4,323	401.61
	Basement	Bar	429	39.85
	Basement	Staff/beer cellar	819	76.06
Power Leisure	Ground	Bookmakers	1,386	128.72
	Basement	Store	536	49.80
Fusion Housing	First	Offices	2,223	206.49
Fusion Housing	Second	Offices	2,033	188.90
Fusion Housing	Third	Offices	2,033	188.90
Fusion Housing	Fourth	Offices	2,033	188.90
TOTAL			15,815	1,369.23

TENANCY DETAILS

The property is let on the following basis: -

DEMISE	TENANT	LEASE	COMMENCEMENT DATE/EXPIRY	REVIEWS	BREAK CLAUSE	RENT
10 John Williams Street	Power Leisure Bookmakers Ltd (UK)	16 years 4 months 12 days	From 06.12.2004 to 17.04.2021			£25,370 pa
Ground floor and basement 14-18 John Williams Street	J D Wetherspoons	35 years	30.05.2001 to 29.05.2036	30.05.2021 to open market	30.05.2026	£90,000 pa
First Floor	Fusion Housing Ltd	11 years 2 months 11 days	01.09.2016 to 011.11.2027	12.11.2017 fixed uplift to £17,072 pa or open market	11.11.2021	£15,000 pa
Second, third and fourth Floor	Fusion Housing Ltd	15 years	12.11.2012 to 11.11.2027	12.11.2017 to open market	12.11.2021	£46,792 pa
5 car parking spaces	Fusion Housing Ltd	11 years 2 months 11 days	01.09.2016 to 11.11.2027			£2,000 pa
Basement substation	Northern Powergrid (Yorkshire) plc	21 years	25.03.1984 to 24.03.2005			£99
TOTAL						£179,261

All lease are on an effective FRI basis via a service charge for common areas. Fusion Housing have a service charge cap of

£3 sq ft RPI uplifted annually.

COVENANT STRENGTH

The investment offers exceptional covenant strength.

TENANT	EXPERIAN RATING	LATESTS ACCOUNTS	TURNOVER	PROFIT	NET ASSETS
J D Wetherspoons plc	99 very low risk	2016	£1.59 b	£66 m	£180 m
Power Leisure Bookmakers Ltd	72 below average risk	December 2015	£420.5 m	£8.39 m	-£56 m
Fusion Housing Ltd	N/A	March 2012			£191,000

Fusion Housing are a non profit making registered charity.

TENURE

999 year ground lease from 1918

PROPOSAL

Offers are invited in excess of £2,100,000 this reflects a net initial yield of 8% after purchase costs of 6.8%.

VAT

The property is elected for VAT and it is anticipated that the transaction will take place by way of a TOGC.

ENERGY PERFORMANCE CERTIFICATE

EPC's are available upon request.

FOR FURTHER INFORMATION

Please contact: -

AWS LOGO

AWS Ltd

Kevin Surplice

[email protected]

Tel: 01132351362

SUBJECT TO CONTRACT

Status	Sold
Type	Investment
Size	15,815 sq ft
To Let/For Sale	For Sale

Address

Pearl House
Huddersfield
HD1 1BA