8-10 Booth Street MancheSter, M2 4aW - Capita Symonds

8-10 Booth Street
Manchester, M2 4AW
PRIME FREEHOLD CITY CENTRE
OFFICE INVESTMENT

8-10 Booth Street, Manchester, M2 4AW
Investment Summary
• Prime freehold city centre office located
within the traditional office core.
• Let to Lloyds TSB Bank Plc expiring
March 2014.
• Rent passing £257,500 per annum,
reflecting £14.96 psf.
• Attractive Grade II listed building with
modern office accommodation provided
within.
• Approximately 14,407 sq ft over ground
and five upper floors.
• Secure basement parking for 14 cars,
providing an excellent ratio of 1:1,029 sq
ft.
• Seeking offers in excess of £2,700,000.
• A purchase at this level shows a Net
Initial Yield of 9%, assuming usual
acquisition costs of 5.8%.
Location
Manchester - widely recognised as the
UK’s second city is the largest business
centre outside London.
Acknowledged as the administrative,
cultural and educational capital of the
North West, the Greater Manchester
conurbation is home to over 2.6m
people and boasts the UK’s largest
regional economy.
The local economy is diverse, with an
estimated 70 of the FTSE 100 companies
having representation, together with
more than 50 international banks and
600 major overseas businesses.
The City is situated 34 miles east of
Liverpool, 83 miles north of Birmingham
and 196 miles north of London.
Situation
The subject property occupies a
prominent position fronting Booth
Street, within the traditional prime core
of Manchester City Centre.
Albert Square, St Peter’s Square and
King Street are within a short walk, as is
the St Peter’s Square Metrolink station
(approximately 200m).
The surrounding area is generally
regarded as Manchester’s financial
centre and has seen the recent
development of prime city centre
offices such as Belvedere and Chancery
Place, which are respectively situated
immediately adjacent and opposite the
subject property.
Manchester
Victoria
Arndale
Shopping
Centre
Piccadilly Gardens
Spinningfields
Town Hall
St. Peter’s Sq
Manchester
Piccadilly

8-10 Booth Street, Manchester, M2 4AW
Connectivity
Road - Greater Manchester benefits from a higher percentage of
the national motorway network than any other UK county - within
two hours drive time of 60% of the UK’s population.
Rail - Manchester city centre benefits from two mainline stations
- Victoria and Piccadilly – with a fastest journey time to London
Euston of just 2hrs 7mins.
Metro - The existing Metrolink is to be extended to provide a tram
network connecting to Altrincham and Manchester Airport (south),
Bury and Rochdale (north), Eccles and MediaCity (west) and Oldham
and Ashton-under-Lyne (east).
Air - Manchester Airport is just 10 miles to the south of the centre.
In 2011, just under 19m passengers used the airport, making it the
UK’s third main airport - the largest outside of London.
Description
The property comprises an attractive Grade II listed
building constructed over ground and five upper floors,
with the benefit of basement car parking.
Previously a retail bank, the property was entirely rebuilt
behind the front and rear facades in the 1980s and as
such provides modern office space throughout.
The upper floor accommodation is provided in two
wings, one to the front elevation and one to the rear,
arranged around a central atrium which provides good
natural light. These floors are served by a common
core with lift access and male/female WC’s on alternate
floors.
The accommodation benefits from air conditioning
throughout, whilst the flooring is a mixture of raised
access, solid floor with recessed grid system or solid
floor with perimeter trunking.
Accommodation
We have been provided with the following net internal
areas, which we understand were agreed with the
tenant at the last rent review:
Floor Use Area Sq Ft (sq m)
Ground Offices 2,854 (265.14)
Store 165 (15.33)
First
Suite 2 Offices 1,669 (155.05)
Suite 3 Offices 1,249 (116.03)
Second
Suite 4 Offices 925 (85.93)
Suite 5 Offices 1,355 (125.88
Third
Suite 6 Offices 1,747 (162.30)
Suite 7 Offices 1,259 (116.96)
Fourth
Suite 8 Offices 1,728 (160.53)
Suite 9 Offices 838 (77.85)
Fifth Offices 506 (47)
Lobby 112 (10.40)
Total 14,407 (1,338.41)
In addition, the property has the benefit of 14 secure
accessed basement car parking spaces, providing a
very attractive ration of 1:1,029 sq ft.
Tenure
The property is held Freehold and is shown for
identification purposes only on the OS Extract Plan.

8-10 Booth Street, Manchester, M2 4AW
13
10
11
5
2 1
6
7
8
14
KING STREET
12
3
4
9
ALBERT SQUARE
KEY
Subject property (8-10 Booth Street)
1 – Belvedere, Booth Street
2 – Chancery Place, Brown Street
3 – Clarence House, Clarence Street
4 – Bow Chambers, Tib Lane
5 – The Chancery, Spring Gardens
6 – 58 Mosley Street
7 – Manchester Art Gallery, Mosley Street
8 – St Peter’s Square
9 – Town Hall
10 – 100 King Street
11 – Ship Canal House, King Street
12 – 82 King Street
13 – The Pinnacle, King Street
14 – 55 King Street

8-10 Booth Street, Manchester, M2 4AW
Tenancy
The property is let to the undoubted covenant of Lloyds TSB
Bank Plc, by way of a lease expiring 31 March 2014 at a current
annual rent of £257,500, reflecting £14.96 per sq ft after allowing
for car parking at £3,000 per space.
Lloyds TSB Bank Plc fully occupy the building and, for the year
ending 31 December 2010, reported a Pre-Tax Profit of £725m and
a Net Worth of £41.38bn.
The Manchester Office market
The Manchester market has remained robust, being the strongest
regional office market over a 10 year period. In 2010 there was
record take up of over 1.3m sq ft, more than double the next best
UK regional city’s take-up of 650,000 sq ft in Birmingham. 2011 has
seen further positive signs with KPMG’s pre-letting of 63,000 sq ft at
One St Peters Square.
Headline rents for prime Grade A space in the City centre have now consolidated at £28 to £30 per sq ft. However, with limited
speculative development there is a real shortage of supply in the medium term, which is anticipated to add pressure to the
market, resulting in increasing headline rents and reducing tenants’ incentives over time.
In addition to the lack of new space, many occupiers are now considering Grade B buildings as they offer cost efficient
alternatives in the current economic climate. This combined effect has meant that the best Grade B accommodation has seen
rental values push up to £23 per sq ft +.
There have been numerous transactions undertaken recently, many within the traditional core, as evidenced below:
Property Tenant Floor Area (sq ft) Term Rent (£psf) Date
The Chancery, Spring Gardens Willis 4,800 5 years £25 April 12
City Tower, Piccadilly Plaza Hempsons 17,884 5 years £17.50 Jan 12
The Lexicon, Mount St Swinton Insurance 5,600 5 years £18 Nov 11
The Pinnacle, King Street RJL Forensics 1,259 5 years £23 April 11
In our opinion, the ERV for best quality Grade B accommodation is in excess of £20 psf.
Investment Market
Given the strength of the occupational market, investor demand for office buildings in
Manchester city centre has also been robust. This is evidenced by a number of transactions,
including:
Property Price Yield Purchaser Date
Belvedere, Booth St £45m 6% DEKA Immobilien Dec 11
Peter House, Peter St £17.5m 7.5% Private Oct 11
Clarence House, Clarence St £164 psf -- HIMOR Oct 11
Bow Chambers, Tib Lane £2.4m 6.9% Patrick Properties July 10
ASSET MANAGEMENT OPPORTUNITIES
The building offers a number of asset management opportunities including the
following:
• Re-gear the lease to Lloyds TSB Bank Plc, who are in full occupation of the property.
• Refurbish the property to provide modern accommodation for single or multi-let
occupation.
• Obtain planning consent to redevelop for alternative uses, such as residential.

8-10 Booth Street, Manchester, M2 4AW
VAT
We understand that the property is currently elected for VAT
and therefore VAT will be payable on the purchase price. It is
envisaged that the sale will be dealt with as a Transfer of a
Going Concern (TOGC).
INVESTMENT RATIONALE
• Prime city centre office located within the traditional office
core.
• Approximately 14,407 sq ft over ground and five upper
floors.
• Secure basement car parking for 14 cars, providing an
excellent ratio of 1:1,029 sq ft.
• Low rental value of £14.96 psf, giving scope for substantial
rental growth.
• Grade II listed – no empty rates liability in the event of vacant
possession.
Proposal
We are instructed to seek offers in excess of £2,700,000,
subject to contract and exclusive of VAT.
A purchase at this level shows a Net Initial Yield of 9%,
assuming usual acquisition costs of 5.8%.
CONTACT
Martin Hamer
Telephone: 0161 819 4233
Mobile: 07792 004 467
Email: martin.hamer@capita.co.uk
Andrew Richardson
Telephone: 0161 819 4234
Mobile: 07544 588 768
Email: andrew.richardson@capita.co.uk
Graham Steel
Telephone: 020 7544 4292
Mobile: 07792 004 773
Email: graham.steel@capita.co.uk
For further information - http://red.capitasymonds.co.uk/boothstreetmanchester
Note: Capita Symonds Ltd (“CSL”), trading as Capita Symonds, part of The Capita Group Plc, for itself and as agent for the vendors or
lessors (the “Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst
every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements
and descriptions in these particulars as to this property are made without responsibility or liability on the part of CSL or the Seller, (b) no
such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and
no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by
inspection or otherwise as to the correctness of each of the statements, particulars (3) The Seller does not make or give, and neither CSL
nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in
relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is made as to the
incidence of VAT. (5) No liability is accepted and no representation is made by either CSL or the Seller in respect of the presence, condition,
adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any
related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CSL would otherwise have for any
fraudulent concealment or for any statements made fraudulently by it, its employees or agents. June 2012.
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