A rare opportunity to acquire one of the most prominent office buildings in Nottingham’s Central Business District.
The property is situated at the northern end of Maid Marian Way and benefits from a dual island site with prominent frontages to Tollhouse Hill, Upper Parliament Street, Derby Road and Wollaton Street. The property is situated in a prime commercial position with nearby occupiers including KPMG, RBS, Barclays, Freeths, Reuters, Global Radio, Ofsted and The Driving Standards Agency
■ Located in Nottingham, the regional and commercial capital of the East Midlands. Nottingham is one of England’s eight core cities and home to many leading corporate and public sector occupiers.
■ City Gate East & West is situated at the very heart of Nottingham’s Central Business District and occupies a highly prominent dual island site at the junction of Maid Marian Way and Upper Parliament Street.
■ Comprises two part refurbished interlinked offices buildings, both with an impressive curved facade and a striking visual appearance.
■ City Gate East is arranged over ground and seven upper floors and City Gate West over ground and two upper floors. The accommodation totals 16,338.80 sq m (175,873 sq ft).
■ 501 car parking spaces, providing an exceptional city centre car parking ratio of 1:334 sq ft.
■ Tenure - held long leasehold with in excess of 132 years unexpired. The current ground rent is ￡85,000 per annum with the next rent review due 2045.
■ Total current passing rent of ￡1,675,563 per annum after ground rent payaway, with an estimated rental value of ￡2,073,638 per annum after ground rent payaway.
■ Attractive weighted average unexpired term of approximately 7.18 years to lease expiries and 4.26 years to break clauses.
■ The property has a high quality tenant line up, being let to 11 tenants including high profile corporate occupiers including Scape Group, Experian, Domestic & General, RSM, Nottingham Trent University, Regus, Arup, JLL and LSH amongst others.
■ Exceptional income diversity, with a strong overall covenant profile. Over 80% of the tenant covenants offer D&B ratings of ‘Minimum Risk of Business Failure’.
■ The property has 2,429.86 sq m (26,155 sq ft) of vacant accommodation on 3rd, 4th and 7th Floor City Gate East and 1st Floor City Gate West. This provides the opportunity to drive rents and value in the short term, benefiting from the shortage of office supply within Nottingham City Centre.
■ Low average rent of less than ￡11.00 per sq ft, set against the current prime rent in Nottingham of ￡19.50 per sq ft. This offers significant future asset management potential to improve running yield and returns.
A purchase at this level reflects an attractive Net Initial Yield of 10.00%, potential reversionary yield of 12.37% and a low capital value of £89.27 per square foot, assuming standard purchaser costs.