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Accommodation
The property has been measured by BKR Floor Plans and provides the following Gross Internal floor areas.
| Sq.Ft | Sq.M | |
|---|---|---|
| Ground Floor | 5,478 | 508.89 |
| First Floor | 4,927 | 457.75 |
| Total | 10,405 | 996.64 |
A set of floor plans is available to download and the measured survey report will be re-addressed to a purchaser at a cost of £495 + VAT.
Tenure
The property is held by CPSPV58 Limited under a 250-year lease from 8th March 2006 at a peppercorn rental.
Therefore, there are over 233 years unexpired.
The lease is subject to an annual service charge of £5,558.76.
Tenancy
Morgan Sindall Construction & Infrastructure Limited occupy the entire property by way of a tenancy at will and are paying a rent of £96,000 per annum. They are currently using the property as a site office whilst they fulfil their contract in repairing the cladding on the residential tower.
Covenant
Morgan Sindall Construction & Infrastructure Limited (Co. No. 04273754) has reported the following figures:
| Year Ending | 31st December 2021 | 31st December 2020 |
|---|---|---|
| Revenue | £1,416,470,000 | £1,533,146,000 |
| Pre-Tax Profits | £49,652,000 | £28,246,000 |
| Net Assets | £301,811,000 | £280,279,000 |
Morgan Sindall Construction & Infrastructure Limited is a UK construction and infrastructure business with a network of local offices. The Company works for private and public sector companies on projects and frameworks from £50,000 to over £1 billion. Activities range from small works and repair and maintenance to the design and delivery of complex construction and engineering projects. The Company also operates across the commercial, defence, education, emergency and custodial, energy, healthcare, industrial, leisure and community, nuclear, retail, science and technology, transport and water sectors.
The Company is part of the Morgan Sindall Group plc (Co. No. 00521970) which has reported the following figures:
| Year Ending | 31st December 2021 | 31st December 2020 |
|---|---|---|
| Revenue | £3,212.8 million | £3,034.0 million |
| Pre-Tax Profits | £126.2 million | £60.8 million |
| Net Assets | £474.2 million | £420.1 million |
Morgan Sindall is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. It is a group of specialist businesses, delivering construction and regeneration across the UK for the public, commercial and regulated sectors. The group employs approximately 6,900 people and operates through five divisions; Construction & Infrastructure, Fit Out, Property Services, Partnership Housing and Urban Regeneration.
2021 was a record year for Morgan Sindall, delivering a record set of results 42% above the Group’s last peak in 2019. The Group continued to win work throughout 2021; secured workload at the year end was £8,614m, up 4% on the prior year. Over 46% of this workload is secured for 2024 onwards. Adjusted operating profit increased by 92% to £131.2m (2020: £68.5m)
Office Sales and Letting Evidence
| Address | Date | Price | Price psf | NIY |
|---|---|---|---|---|
| Giants Basin, M3 | 10/12//2021 | £2,600,000 | £252 | 6.25% |
| Calrence House, M2 | 01/12/2021 | £6,700,000 | £337 | 6.15% |
| Unit 4 Ball Green | 25/03/2021 | £750,000 | £187 | NA |
| 1 Adbaston Road | 15/06/2021 | £900,000 | £213 | NA |
| Address | Date | Lease Term | Rent PA | Rent psf |
|---|---|---|---|---|
| 46-58 Copperas Street, M4 | 27/01/2022 | 5 years | £23,400 | £16.51 |
| 15 Swan Street, M4 | 21/07/2021 | 5 years | £29,196 | £18.80 |
| Basil Chambers, M4 | 24/05/2021 | 5 years | £12,500 | £15.49 |
| Express Building, M4 | 30/07/2020 | 5 years | £240,000 | £20 |
VAT
VAT is payable on the purchase price.
Proposal
We are instructed to seek offers in the region of £900,000 (Nine Hundred Thousand Pounds), subject to contract.
This price reflects an overall capital value of £86.50 per sq ft / £903 per sq m. It is suggested that the property could command a rent in the order of £156,000 per annum (£15 per sq ft / £156.5 per sq m), reflecting a potential gross yield of 12.5%.
Investment Considerations
Low capital value;
Opportunity to purchase a commercial property within a desirable location in Manchester;
Potential to add value via refurbishment or repositioning;
Excellent transport links,
Regeneration area;
Ability to enter into a new lease with Morgan Sindall Construction and Infrastructure Ltd (Net Assets £301m) subject to negotiation;
Potential to generate attractive yield;
Attractive lot size for an investor;
Disclaimer
The attention is drawn to the fact that access to all areas of the property may not be possible prior to completion
Replies to standard enquiries will not be provided as part of the conveyancing process
The property will be sold as seen. No express or implied warranties or representations are given.
Any prospective owner must be prepared to undertake robust asset management initiatives to regularise the basis upon which any commercial and residential occupants remain in situ.
The guide price has been set realistically to reflect significant opportunities to build a sustainable income stream and enhance value
