Joseph Stones House, St. Cecilia Street, Leeds, West Yorkshire, LS2 7PA
Guide Price* : £20,000,000
Prime City Centre Student Accommodation Investment
- Student investment
- Let to Unite Integrated Solutions Plc with a guarantee from LDC (Holdings) Plc
- 15.5 years unexpired (to August 2034)
- Current income of £868,986 per annum
- Annual uncapped RPI reviews with next review in September 2019
- Sublease of teaching accommodation and a rare 80% Nomination Agreement with Leeds College of Music, providing further income security
- Long Leasehold (circa 103 years unexpired) at a peppercorn
- Potential net income of circa £1,200,000 per annum if directly let, providing a substantial reversion
Built in 2005, Joseph Stones House comprises a 14-storey purpose-built teaching and student residential block. The accommodation is arranged to provide teaching space on ground to third floors, with residential student flats above.
The accommodation provides 190 student units, all with en-suite facilities, clustered in 35 flats of three to seven bedrooms with communal kitchen and living spaces. There are an additional nine studio flats. The flats and communal areas are finished to a modern specification, including low energy lighting and wall mounted convection heaters.
Leeds is an established historic and cultural centre that has undergone a renaissance in recent years and has become a hub for media and creative businesses. This is mainly due to the large number of graduates specialising in creative courses within the city. Three of the five universities within Leeds have a specialism in the arts; including Media, Music and Fashion.
The city has seen some £4 billion invested in development projects in recent years, with a further £7 billion either planned or under construction. Furthermore, the city is undertaking a Cultural Investment Strategy, which includes entering a bid for European Capital of Culture 2023 and is aimed at emphasising the city’s heritage of innovation and creativity. Leeds is home to the longest running music hall in the country, City Varieties Music Hall, which has hosted the likes of Charlie Chaplin. The first moving film in the world was also created in Leeds in 1888.
Long leasehold from Leeds College of Music, for a term of 118 years and 2 days expiring on 20 August 2122 (approximately 103 years unexpired) at a peppercorn rent.
The property is underlet to Unite Integrated Solutions Plc for a term of circa 29 years from 3 September 2005 to 11 August 2034, leaving an unexpired term of approximately 15.5 years.
The lease is guaranteed by LDC (Holdings) Plc. The current rent of £868,985.71 per annum is subject to annual review on 1 September, geared to uncapped RPI uplifts. All reviews are upwards only.
The Unite Group Plc is a FTSE 250 company. Founded in 1991, Unite has grown to become the UK’s leading developer and manager of purpose-built student accommodation, with over 125 properties across 22 UK cities and providing 50,000 beds to students each year.
Unite Integrated Solutions Plc have a Dun & Bradstreet rating of NI (Low-moderate risk).
Leeds City Council
The property is elected for VAT and part exempt on the student residential element. We understand the sale can be treated as part Transfer of a Going Concern (TOGC).
* Generally speaking Guide Prices are provided as an indication of each seller's minimum expectation. They are not necessarily figures which a property will sell for and may change at any time prior to the auction. Virtually every property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10% above a single figure Guide.
Administration Fee The successful purchaser will be required to pay the auctioneers administration fee of £990 inclusive of VAT on purchases of £20,000 and above and £240 inclusive of VAT for purchases below £20,000. Other additional costs/fees may apply - Click here.
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The successful purchaser will be required to pay the auctioneers administration fee of £990 inclusive of VAT on purchases of £20,000 and above and £240 inclusive of VAT for purchases below £20,000. Other additional costs/fees may apply - Click here.
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Subject to Contract and Exclusive of VAT © Lambert Smith Hampton November 2019
Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries, including 574, and their joint agents if any ("LSH") for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.