High-Yielding Prominent Modern Medical Centre Investment

• Modern purpose-built property • Prominent position • Potential to purchase as a whole or in two lots • Excellent asset management opportunities

FOR SALE

Ground Floor Commercial UnitsFresh Building | Chapel Street | Salford | Manchester | M3 6AF

Property Services

Property Services

Ground Floor Commercial UnitsFresh Building | Chapel Street | Salford | Manchester | M3 6AF

Investment Summary• Modern purpose-built commercial property

investment forming part of an 11-storey private residential development of 141 units.

• Well-located and prominent position on Chapel Street in Salford, close to Manchester city centre

• Improving location within the regeneration area of Salford with many new developments proposed and under construction within the immediate vicinity.

• Currently generating a rent of £52,012 per annum with potential to boost income to over £62,000 per annum when the vacant unit is let.

• Excellent medium-term asset management opportunities

• Potential to purchase as a whole or in two lots

ProposalWe are instructed to seek offers in excess of £425,000 (exclusive of VAT) for our client’s long leasehold interest in the property. A purchase at this level reflects an attractive net initial yield of 11.7% on current rental income, assuming full purchaser’s costs of 4.530%. When fully let, we estimate the net initial yield would rise to almost 14% on the same basis. Our client would also consider the sale of the property in two lots.

Location & Situation The property comprises the two ground floor commercial units located within the Fresh apartment development fronting Chapel Street in Salford close to Manchester city centre, which is in the North West of England and recognised as the Country’s largest commercial, financial and educational city outside London.

Manchester lies approximately 58 km (36 miles) east of Liverpool, 71 km (44 miles) west of Leeds and approximately 296 km (184 miles) north of London. The property is located close to the Manchester inner ring road, providing direct access to the M60 Manchester orbital motorway linking to the region’s motorway network, being to the east, the M6 Birmingham to Scotland motorway and to the north, the M62 transpennine motorway.

Manchester International Airport is located approximately 16 km (10 miles) to the south of the city centre, and provides an increasing range of nations, European and intercontinental flights.

Manchester has two main railway stations, Piccadilly and Victoria, linked by a shuttle bus and Metrolink tram service. Intercity trains connect Manchester to the national rail network, with a service to London

Euston of approximately 2 hours 10 minutes. In addition there is a direct rail service from Manchester Piccadilly to Manchester Airport.

The property is situated within a short walking distance of Salford Central train station, and within ½ mile of Deansgate and the Spinningfields development. The renowned Salford Quays is also within two miles of the property.

Ground Floor Commercial UnitsFresh Building | Chapel Street | Salford | Manchester | M3 6AF

MANCHESTER

SAT NAV: M3 6AF

M62

M61

M60 M60

M60

M67

M602

MANCHESTER

A56

A6

A36

A56 A57

A56

A578

A576A580

A635

A62

A560

A6010

A5103

18

17

1615

14

1920

21

22

23

24

1

3

5

7

9

1212

Prestwich

Pendlebury

Salford

Eccles

UrmstonStretford

StockportWythenshawe

Castlefield

Sale

Timperley

Partington

Dunham Massey

A6042

A665

A6042

A6

A34

A57(M)

A57

A56 A34A5103

M602

A57(M)

A5063

Trinity Way

Trinity Way

Trafford Rd

Bridge St

Regent Rd

Chapel St

Bloom St

IRWELL

RIVER

Ring Road

Ground Floor Commercial UnitsFresh Building | Chapel Street | Salford | Manchester | M3 6AF

Description and AccommodationThe property comprises two ground floor commercial units constructed as part of a large apartment development in 2007.

The larger unit is arranged over the ground floor and part mezzanine and has been fitted out as a medical centre operating as Blackfriars Medical Practice. The ground floor provides an open plan reception area with treatment/consultant rooms off. Staff and storage areas are located on the mezzanine level, accessed via a staircase situated at the front of the unit.

It is understood the tenant also has use of six car parking spaces (including disabled parking) within Fresh building’s car park under a separate arrangement.

The smaller commercial unit is currently vacant and is finished to a shell condition and has potential for a variety of retail and commercial uses subject to the necessary planning consents being obtained.

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) have the following floor areas:

DESCRIPTION USE SQ M SQ FTPart Ground Floor & Mezzanine

Medical Centre 448 4,824

Part Ground Floor Vacant Retail Unit 87 939

TOTAL 535 5,763

Ground Floor Commercial Units, 138 Chapel Street Salford

Plan shows area bounded by: 383168.38, 398535.33 383286.46, 398687.04, OSGridRef: SJ83229861. The representation of a road, track or path is no evidence of a right of way. The representation offeatures as lines is no evidence of a property boundary.

Produced on 21st Mar 2017 from the Ordnance Survey National Geographic Database and incorporating surveyed revision available at this date. Reproduction in whole or part is prohibited without theprior permission of Ordnance Survey. © Crown copyright 2017. Supplied by mapserve.co.uk a licensed Ordnance Survey partner (100053143). Unique plan reference: #00205845-D767C8

Ordnance Survey and the OS Symbol are registered trademarks of Ordnance Survey, the national mapping agency of Great Britain. Map Serve logo, pdf design and the mapserve.co.uk website areCopyright © Pass Inc Ltd 2017

TenureLong leasehold for a term of 999 years from 28 September 2007 (approximately 989 years unexpired) at a peppercorn rent.

Occupational TenancyThe medical centre is let on a standard commercial lease to NHS Property Services Limited for a term of 10 years from 4 February 2009, at a current rent of £52,012 per annum.

The smaller commercial unit is currently vacant.

Tenant Covenant InformationNHS Property Services Limited (Registered Number 07888110) was incorporated in 2011 and launched in 2013 by the Department of Health to create a property and facilities management service to the former Primary Care Trust estate forming part of the NHS estate.

NHS Property Services is wholly owned by the Secretary of State for Health and oversees over 3,500 individual property interests, worth over £3.6 billion, representing approximately 10 percent of the entire NHS estate.

NHS Property Services has a small headquarters and regional office in London as well as regional offices in the North (Manchester), Midlands and East (Cambridge) and South (Taunton).

A copy of the company’s latest published accounts for the year end 31 March 2016 are available on request.

Property Services

Property Services

Ground Floor Commercial UnitsFresh Building | Chapel Street | Salford | Manchester | M3 6AF

Service ChargeA service charge is payable to the freeholder of Fresh building for the maintenance of the external common parts. For the year ending September 2017, this currently equates to £2,991.12 pa for the medical centre and £552.84 pa for the smaller commercial unit.

The service charge for the medical centre is recoverable from the tenant under the occupational lease.

VATWe are advised that the property has been elected for VAT, and therefore VAT will be payable on the purchase price. We envisage that the sale could be treated as a Transfer of a Going Concern.

EPCCopies of the EPC certificates are available on request.

MISREPRESENTATIONS ACT 1967 & DECLARATIONTim Harries & Partners LLP for themselves and for the vendors of this property whose agents they are given notice that a) the particulars are set out as a general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Tim Harries and Partners LLP has any authority to make or give any representation or warranty. carve-design.co.uk 12916

Claire Chambers07803 001742

claire@timharriesandpartners.co.uk

Andy Riches0161 4774222

ajr@geebennett.com

0115 935 2064www.timharriesandpartners.co.uk

For further information please contact the following agents:

ProposalWe are instructed to seek offers in excess of £425,000 (exclusive of VAT) for our client’s long leasehold interest in the property. A purchase at this level reflects an attractive net initial yield of 11.7% on current rental income, assuming full purchaser’s costs of 4.530%. When fully let, we estimate the net initial yield would rise to almost 14% on the same basis. Our client would also consider the sale of the property in two lots.

PlanningPlanning consent was granted in 2006 under 06/53454/FUL for the construction of an 11 storey building comprising 141 apartments with A1 retail floorspace at ground floor level. Subsequent planning consent for a change of use of the larger retail unit from A1 to D1 was granted in 2008 under 08/56993/FUL.

It is understood that the property is situated within the Chapel Street Regeneration Area of Salford as allocated under the Salford Unitary Development Plan which was adopted on 21 June 2006.