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PRIME FREEHOLD BANK INVESTMENTBARCLAYS BANK - 38 FISHERGATE,
PRESTON PR1 2AD
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BARCLAYS BANK - 38 FISHERGATE, PRESTON 2
INVESTMENT SUMMARY
• Flagship Bank in prime location• Let to Barclays Bank until
August 2026• Regional HQ and Mortgage Centre• Passing rent £240,000
per annum• Low Zone A rate of £120 per sq.ft.• Guide Price
£2,950,000• Net Initial Yield 7.64%• Reversionary Yield 8.18%
PRESTON
Preston is the third largest city in the North West of England
and is the Administrative Centre of Lancashire. It was awarded City
Status in 2002 in recognition of its cultural, economic and retail
pedigree. It is regarded as one of the most dynamic economies in
the North West and is home to the University of Central
Lancashire.
The city is approximately 30 miles to the North West of
Manchester, 30 miles to the North East of Liverpool, 12 miles to
the East of Blackpool and 211 miles North of London.
From the 2011 census the city has a population of 328,463 people
within a 20 minute drive time increasing to 525,260 people within a
10 mile radius, giving the retail centre a large primary retail
catchment. This is further enhanced by the 35,000 students
attending the university.
Preston has excellent transport links with 4 motorways nearby
including the M6 and M61.
Preston Railway Station, which serves 4 million passengers a
year, offers services to London Euston in just over 2 hours.
In addition, there are four international airports that are
accessible within one hour including Liverpool John Lennon Airport,
which is 36 miles to the south of the city and Blackpool
International Airport which is 15 miles to the west.
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BARCLAYS BANK - 38 FISHERGATE, PRESTON 3
LOCATION
The property occupies a prominent corner location at the
junction of Fishergate and Winckley Street in a 100% prime
location. Fishergate is mainly pedestrianised and represents the
main retailing pitch in the City Centre with M&S, Next, Boots,
WH Smith, Topshop/Topman, JD Sports, Clarks, River Island, BHS,
HMV, Fat Face, Sainsbury’s together with a number of other major
retailers, banks and coffee shops all represented. The Street also
has the principle entrances to St George’s Shopping Centre, where
H&M are represented and Fishergate Shopping Centre, which is
anchored by Debenhams. 38/39 Fishergate is located between the two
entrances. Winckley Street is also pedestrianised and is
predominantly occupied by cafés and bars, including Pizza Express.
The aspirational Whittles jewellers have recently re-sited to the
opposite corner bringing with them a number of upmarket watch
brands including Rolex and Omega, giving a further indication of
the city’s affluent status.
DESCRIPTION
This is a modern, three storey building, providing sales
accommodation in completely clear space. The ground floor and first
floors provide customer banking facilities and there are fully
utilised ancillary areas at basement, mezzanine and second floor
levels. There is a passenger lift to the upper floors at the
entrance from Fishergate. The whole property was the subject of a
major re-fit by the tenant in 2011 including corporate re-branding
and upgrading of many of the facilities.
DIMENSIONS & AREAS
The property has the following approximate dimensions and net
floor areas:
Net Window Frontage (Fishergate) 43'06" 13.05 m
Net Window Frontage (Return) 76'04" 22.90 m
Shop Depth 90'10" 27.25 m
Built Depth 94'00" 28.20 m
Ground Floor Sales 3,435 sq.ft. 319.11 m2
ITZA 1,524 units
Basement Storage 2,354 sq.ft. 218.69 m2
First Floor Sales 2,852 sq.ft. 264.95 m2
Mezzanine Ancillary/Staff 465 sq.ft. 43.20 m2
Second Floor Ancillary 2,744 sq.ft. 254.92 m2
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BARCLAYS BANK - 38 FISHERGATE, PRESTON 4
TENURE
The property is Freehold
TENANCY
The property is let to Barclays Bank PLC for a term of 20 years
from 3rd August 2006, subject to a tenant only option to determine
the lease in 2021, at a passing rent of £240,000 per annum
exclusive. The lease is subject to upward-only rent reviews every
five years. The 2016 rent review has not been initiated.
The lease is on a full repairing and insuring basis and is
subject to a brief Schedule of Condition (almost all of which has
been rendered redundant by the substantial tenant re- fit
undertaken in circa 2011/12).
TENANT COVENANTS
Barclays Bank PLC (01026167) is a major international bank with
over 1,800 branches in the UK. It is a major operating subsidiary
of Barclays PLC For the year ended 31st December 2015 the company
had a turnover of £26.755 billion and a pre-tax profit of £2.309
billion. Experian rate them as “low risk”.
COMMENT ON RENT
We devalue the rent of £240,000 per annum to a Zone A rate of
£120 per sq.ft. This devaluation is attained by applying a rate of
£12.00 per sq.ft. on the first floor sales area, £5.00 per sq.ft.
on the first floor ancillary and £3.00 per sq.ft. on the basement
and second floor ancillary areas while incorporating a 2.5% premium
for the return frontage.
The passing rent rose from £200,000 per annum at the last
review. The passing Zone A rate, however, still compares favourably
with the tone along Fishergate, where Nationwide Building Society
took a new lease in January 2014 at a Headline rent of £130 Zone A.
Applying £130 Zone A to the Barclays would show a reversionary
rental of circa £257,000.
EPC
The EPC rating is D 92. Certificate is available on request.
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MISREPRESENTATION ACTThese particulars are intended only as a
guide to prospective purchasers to enable them to decide whether to
make further inquiries with a view to taking up negotiations but
they are otherwise not intended to be relied upon in any way or for
any purpose whatever and accordingly neither their accuracy nor the
continued availability of the property is in any way guaranteed and
they are furnished on the express understanding that neither the
agent nor the vendor is to be, or come, under any liability or
claim in respect of their contents. The vendor does not hereby make
or give nor does any Partner or employee of Smith Price LLP have
any authority to make or give any representation or warranty
whatsoever as regards the property or otherwise. Any prospective
purchaser or lessee or other person in any way interested in the
property should satisfy himself by inspection or otherwise as to
the correctness of each statement contained in these particulars.
In the event of the agents supplying any further information or
expressing any opinions to a prospective purchaser, whether oral or
in writing, such information or expression of opinion must be
treated as given on the same basis as these particulars. These
particulars do not form part of any contract and, except where
expressly otherwise stated, offers will be considered only subject
to contract.
Smith Price LLP is a limited liability partnership registered in
England and Wales. Registered number: OC318959. Registered office:
5/7 John Princes Street, London W1GSUBJECT TO CONTRACT
FURTHER INFORMATION
For further information please contact:
PROPOSAL
For the freehold interest, subject to the benefit of the letting
we seek offers in the region of £2,950,000 subject to contract to
show a net initial yield of 7.64% having taken purchase costs at
6.44%.
This is an opportunity to acquire a flagship regional bank
branch which is let to the strong covenant of Barclays Bank PLC
until 2026. Further, the investment offers the potential for rental
growth as retail in the city continues to consolidate and
strengthen.
VAT
The property is registered for VAT and a sale is expected to be
by TOGC.
John Loveday 020 7318 5753 [email protected]
PRIME FREEHOLD BANK INVESTMENTBARCLAYS BANK - 38 FISHERGATE,
PRESTON
Mark Cherry 020 7318 [email protected]
Stephen Powell 020 7318 5751 [email protected]
Smith Price LLP5-7 John Princes StreetLondon, W1G 0JN
