New Concept Bank Investment Opportunity
- Located in the heart of Leeds Central Business District with high levels of footfall.
- First “work café” concept to open in the UK following its success in 7 locations worldwide.
- Innovative banking format over ground and basement totalling 5,251 sq ft (487.82 sq m).
- Currently producing a total rent of £117,500 per annum.
- Secured to the 5A1 covenant of Santander UK Plc for a term of 10 years from 8th October 2018, subject to a break option in the 5th year of the term.
- Offers are invited in excess of £1,770,000 subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 6.25% taking into consideration standard purchaser’s costs of 6.21%.
Leeds, the country’s second largest legal and financial centre, benefiting from a catchment population of some 1.3 million people. The City has one of the most diverse economies of any UK employment centre and is the UK’s fastest growing city with the second largest employment total, and one of the largest financial hubs outside of London.
10 Park Row is a prominent and eye-catching unit situated in the heart of Leeds’s Central Business District. Park Row forms part of the CBD and links the main financial district to the main retail areas and forms a spine between City Square and The Headrow. Leeds City Railway Station is within a 2 minute walk to the south which has a major effect on footfall to the property from both office workers and retail shoppers.
Park Row is home to most of the high street banks which include Natwest, Lloyds, Santander and Royal Bank of Scotland, as well as high profile firms including Pinsent Masons and Deloitte. Just a few minutes walk to the North is the city’s Civil District including the Law Courts and the two major universities. Immediately to the east sits the prime retail and leisure areas, which comprise, Briggate, being home to Harvey Nichols as well as The Victoria Quarter and Trinity Shopping centre.
10 Park Row comprises a mid-terrace modern mixed-use building, built in 1996, comprising a ground floor retail unit, with basement and residential accommodation on the upper eight floors (residential accommodation sold off on long leases).
The property comprises the following Net Internal Areas as stated within the lease to Santander:
Please note, the tenant has installed a mezzanine floor which is not included within the rentalised areas.
The ground floor and basement unit has been extensively refurbished and transformed into Santander’s first UK Work Café providing a community hub offering state-of-the-art banking facilities, free co-working spaces, 3 bookable meeting rooms and freshly-brewed artisan coffee from renowned artisan coffee specialists Taylor St Baristas.
The premises have a Permitted Use Class of A1, A2 or A3 (or a combination thereof) under The Town and Country Planning (Use Classes) Order 1987.
The Work Café aims to bring a whole new banking experience to the UK market, reflecting Santander’s commitment to bringing innovation and investment to its branch network. The Work Café concept was initially developed by Santander in Chile and its success has seen it rolled out to Spain, Portugal, Brazil and Argentina.
According to Santander data, between two and four times more accounts are opened at Work Cafés than at traditional branches. In Spain, the number of customers is increasing by 11% a year and new loan production, by 73%.
The ground floor and basement is let to Santander UK plc on a new 10 year lease from 8th October 2018 with a tenant only break option in year 5, subject to 6 months’ notice.
The current passing rent is £117,500 per annum and is to be reviewed to market value, upwards only, in the 5th year
The property is held Virtual Freehold from Ishguard Limited for a term of 999 years from 16th August 2000 at a fixed rent of £1 per annum.
Santander UK Plc
Santander UK Plc is one of the UK’s leading personal financial services companies and one of the largest providers of mortgage and savings products in the UK.
Since its entry into the UK in November 2004, Santander now has approximately 1,200 branches, employs around 193,000 people worldwide and has 15 million active customers. Santander currently benefits from a Dun & Bradstreet rating of 5A1.
Available upon request.
The property is not elected for VAT.
Offers are invited in excess of £1,770,000 subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 6.25% after taking into consideration standard purchaser’s costs of 6.21%.
MISREPRESENTATION ACT 1997 & DECLARATION
Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that:
i) 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.
ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them.
iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property.