Office for sale in Mercury Place, St George Street, Leicester LE1

£10,460,000 (£122.79/sq. ft)
Interested in this property? Call +44 115 774 9117 * or Request Details

* Calls to this number will be recorded for quality, compliance and training purposes.

Office for sale 85,183 sq. ft*
Tenure: Not available Council tax band: Not available

Property description

Investment

Reversionary City Centre Multi Let Office & Leisure Investment with Significant Value Add Potential

One of Leicester’s most prominent office buildings, situated in a prime cbd location
within a 2 minute walk to Leicester Station offering a direct train to Central London
in only one hour.

Offering 58,267 sq ft (nia) of offices over five floors and a 26,916 sq ft (gia) leisure unit.

The property is let to eight tenants at a passing rent of £976,902 pa with a wault to
the breaks of 3.89 years and a wault to lease expiry of 5.71 years.

The office is multi-let with only 9% vacancy and recent letting activity providing
evidenced demand and a reversionary erv. The leisure unit is single let to the only
trampoline park in Leicester, with no competition nearby and abundant local demand.

The office offers a low average passing rent of £14.47 per sq ft, offering substantial
reversion as the most recent letting in the building the ground floor suite was agreed
at £16.50 per sq ft (erv on upper floors is assumed to be ahead of this level).

Reversionary income profile with the majority of the space having outstanding or
upcoming rent reviews within the next 12 months.

Prime office rents within Leicester now £20.00 per sq ft (+).

The Trampoline Park is let off a low rent of £4.46 per sq ft.

The property occupies a 2.55 acre site, offering great scope for future long term
redevelopment.

The office has an excellent city centre car parking ratio of 1:355 sq ft.

Leicester’s affluent catchment, large student population (60,000 students) and fast
connectivity to London in one hour by train has attracted major occupiers such as
Octopus Energy, aj Gallagher, Grant Thornton, ibm and Hastings Insurance.

Leicester City Council is investing £1.7m into the micro location surrounding the
property, which will vastly improve the arrival experience, surrounding public realm and
connectivity to both Leicester Station and the City Centre.

The asset is priced off a low capital value, well below replacement cost and offering
long term alternative use potential.

We are instructed to seek offers in excess of £10,460,000 subject to contract
and exclusive of VAT. A purchase at this price would reflect a net initial yield of
8.75% and a low capital value of £123 psf, after allowing for purchaser’s costs
of 6.70%. The price reflects a revisionary yield of 9.30%+ once rent reviews are
settled in the next 12 months.

Property info

* Sizes listed are approximate. Please contact the agent to confirm actual size.

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For more information about this property, please contact
FHP, NG1 on +44 115 774 9117 * (local rate)

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Property descriptions and related information displayed on this page, with the exclusion of Running Costs data, are marketing materials provided by FHP, and do not constitute property particulars. Please contact FHP for full details and further information. The Running Costs data displayed on this page are provided by PrimeLocation to give an indication of potential running costs based on various data sources. PrimeLocation does not warrant or accept any responsibility for the accuracy or completeness of the property descriptions, related information or Running Costs data provided here.

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