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Metropolitan Building, 29-31 Alfred Street, Belfast, Co. Antrim, BT2 8ED

Investment Property For Sale by Private Treaty
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Features

  • Modern, Self contained, office building with on site parking (4 vehicles)
  • Let to a strong covenant, on FRI terms with c 13 years unexpired to 31st March 2028
  • Situated in Belfast City Centre
  • Floor Area - 14,335 sq ft
  • Let to a wholly owned subsidiary of Arthur J Gallagher, a NYSE listed company, 4th largest insurance broker in the world
  • Currently, producing £187,500 pa, FRI, with rent reviews scheduled to occur 1 April 2018, 1 April 2013

Location

The property is located in Belfast city centre, south of City Hall, where many office buildings are occupied by well known companies.

Fronting Alfred Street, the building is 50m approx from the junction with Ormeau Avenue close to the Premier Inn and Holiday Inn Hotels, BBC Headquarters, Pure Gym, a range of restaurants, apartment blocks, on street and 'contract' parking areas.

Major public transport links, the rail hubs at Belfast Central Station and Great Victoria Street and the motorway network are all in close proximity. The 2 Belfast airports are within easy reach.

Full Description

NB: This property is being offered as part of a portfolio of 2 assets. Offers will be considered for the entirety or in single lots. The other asset (Unit 15, Forty 8 North Business Park, 48-50 Duncrue Street, Belfast) is a Warehouse Investment let on similar terms to the above.

Central Park is a modern, mixed use, office and residential scheme comprising two blocks fronting onto Adelaide Street and Alfred Street with secure parking for 44 vehicles to the rear accessed off an adjacent laneway.

The subject property known as Metropolitian Building, forms part of the scheme fronting Alfred Street and comprises a modern, self contained, office investment arranged on ground, first and second floors with reserved parking for 4 vehicles. On the 4 floors above there are apartments which are accessed separately.

Each office floor is served by an 8 person 'Otis' lift and stairs from a ground floor entrance foyer accessed off Alfred street. The suites are fitted to a modern 'Grade A' standard with raised access flooring, carpets, wall finishes, suspended ceilings, recessed lighting and is fully air conditioned throughout via a gas fired system. The tenant fit out provides largely open plan space with private offices, meeting rooms, kitchen/staff area, tea points and WCs.

The property in its entirety is let to a single tenant.

Title

Held for a term of 999 years from 31 October 2001 at a yearly rent of £300. There is also an obligation to pay a contribution towards the service charge for the complex.

Lease

The property is let in its entirety on the following terms see attached.

There are 2 informal sub leases to B&J Financial Services on a rolling 6 month basis and Dallas on a rolling 3 month basis.

The Tenant

Established in Chicago in 1927 Arthur J Gallagher (AJG) is one of the worlds largest risk management and insurance broking firms with 13,000 employees operating in 17 countries. The firm has total assets in excess of $3.5bn.

Until April 2014 the property was occupied by Oval Group which was acquired by Arthur J Gallagher in a deal worth £210m. This acquisition gave AJG instant access to a network of 24 offices in the UK and 1200 employees.

EPC

The property has an EPC rating of E110.

The Office Occupier Market

Belfast is currently experiencing a shortage of new Grade A stock with only c. 60,000 sq ft of previously unoccupied space available. There is limited prospect of any improvement in stock levels in the near future as there is no speculative construction scheduled for 2015. This, balanced against take up of 350,000 sq ft last year, an improving economy and a growing list of job creation announcement will create upward pressure on rental levels in the short to medium term. It is predicted that rents will break through £16 psf in 2015. Furthermore the anticipated delivery of reduced Corporation Tax rates, closer to our neighbours in the Republic of Ireland, has the potential to drive letting activity as internal job creation gathers pace and with the arrival of new FDI companies.

Historically rents have remained at £12.50/£13 psf but there is evidence that a new growth pattern is underway as evidenced by the lettings summarized below. The rent passing the subject property analyses of £12.87 psf after allowing £750 pa per parking space.

Investment Sales

The investment market has been particularly active in the last 12 months with a significant number of investment transactions occurring totalling £500m. In the office market notable deals include :-

 Property

Price 

 Date

 NIY

 Victoria House
(Multi let, short lease)


 £8.7m

 July 2014

 8%

Cylinder Building, Gasworks (Multi let, geared ground rent)

 £3.3m

 September 2014

 9.74%

 Killeaton House (Single Let)  

£2.35m

 September 2013 

 7.6%


We are instructed to seek offers over £2.5m for our clients interest in the property and subject to the prevailing lease. A purchase at this level reflects a NIY of 7.09% assuming acquisition costs of 5.8%. At the next review assuming growth to £16 psf (£233,360 pa) this would reflect a yield of 8.82% after costs.

VAT

NB - Please note the sale of the property will not be subject to VAT.

Viewing Details

By special appointment with the sole selling agent, Lisney.

Accommodation

    Floor

    Floor Area
    (sq m)

    Floor Area
    (sq ft)
    Ground  
    3,983 370
    First 5,176 480
    Second 5,176  480
    Total 14,335 1330

Contact Details

Address: Montgomery House, 29-33 Montgomery Street, Belfast BT1 4NX
Telephone: +44-2890-501501 or you can also email us at property@lisney-belfast.com

Lisney for themselves and the Vendor/Lessor whose Agents they are give notice that:

1. These particulars do not constitute any part of an offer or contract.

2. All statements contained in these particulars as to this property are made without responsibility on the part of the Agents or the Vendor/Lessor and none of the statements contained in these particulars as to this property are to be relied on as statements or representations of fact.

3. The particulars, various plans, photographs, dimensions, references to condition and permissions for use and occupation  are given in good faith and are believed to be correct but their accuracy is not guaranteed and any intending Purchasers or Tenants shall satisfy themselves by inspection or otherwise as to correctness of each of them. No omission, accidental error or misdescription shall be ground for a claim for compensation or for the rescission of the contract by either the Vendor/Lessor or the Purchaser/Tenant.

  4. Neither the Vendor/Lessor nor Lisney nor any person in their employment has any authority to make or give any representation or warranty whatever in relation to the property. 5. Prices are quoted exclusive of VAT (unless otherwise stated) and all negotiations are conducted on the basis that the Purchaser/Tenant shall be liable for any VAT arising on the transaction. PSRA No. 001848.

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