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Sheffield – High Yielding Mixed Use Investment with Value Add Potential

Hillsborough Barracks, Penistone Road, Sheffield, S6 2GY

Offers in excess of £4,200,000

Property Types:
Commercial, Mixed, Residential
Sub Type:
Retail
Net Initial Yield:
14%

Description

  • Sheffield is the commercial, administrative and retail centre of South Yorkshire.
  • National and local transport links are excellent with Sheffield Station providing regular national rail services to London Kings Cross and The Supertram service which runs from the City Centre to Hillsborough.
  • Sheffield is set to benefit from HS2 which will further enhance Sheffield’s rail connectivity offering more routes and reduced travel times.
  • Hillsborough Barracks comprises a ground floor shopping centre with converted offices to the upper parts and five separate office buildings within a walled estate which covers a total site area of 11.5 acres / 4.65 hectares.
  • Hillsborough Interchange is situated to the North West of our site which connects to the City Centre and the surrounding area.
  • The centre boasts a strong and diverse tenant line up to include Sheffield City Council, Siemens, The Department for Work & Pensions and a number of established local businesses.
  • Neighbouring occupiers include Morrison’s, Renault, Citroën, B&Q, Halfords Autocentre and Iceland.
  • Total lettable floor area of 80,501 sq ft / 7,479 sq m of retail and office accommodation.
  • Total contracted rent of £576,709 p.a and a net operating income of £547,621 p.a.
  • Approximately 53% of the contracted income is from retail and the remaining 47% from office tenancies.
  • WAULT of 4.87 years to expiry and 2.04 years to break.
  • 78.99% of the contracted rent was collected during this challenging period as demonstrated by our clients rental collection records (included in the dataroom).
  • The buildings are Grade II listed which mitigates the empty rates liability on the vacant accommodation.
  • The property is held Long Leasehold expiring on 23 January 2139 thus having some 118 years unexpired at a peppercorn rent.
  • WM Morrison’s plc (00358949) hold the freehold title of the subject property, which is registered under the title numbers SYK622230 and SYK626306.
  • The site offers significant value add potential to purchase the freehold, reposition the offices to residential apartments subject to obtaining the necessary consents and individual sales / carve outs and an opportunity to extend the leases to major tenants.