• Belfast, the capital of Northern Ireland is the 12th largest city in the United Kingdom and the 2nd largest on the island of Ireland. The city is located approximately 165 km (103 miles) north of Dublin and 120 km (75 miles) south east of Derry-Londonderry.
• The property is situated on the corner of the Dublin Road and Harmony Street. The Dublin Road is a major thoroughfare linking the City Centre to South Belfast and is a well-established commercial, leisure and residential location.
• The property is only a few minutes’ walk from Belfast’s prime retailing core and is within close proximity to Great Victoria Street Train Station and Europa Bus Station.
• The building comprises a 146 en-suite bedroom hotel set over ground and six upper floors. The hotel was constructed in 2013 and includes a 2,500 sq ft vacant retail unit to the rear in shell condition.
• The hotel is let to Accor UK Business & Leisure Hotels Limited trading as ETAP Hotel until 25th August 2030 (6.92 years unexpired) at a current passing rent of £535,839 per annum which reflects £3,670 per room.
• The FRI lease is subject to yearly rent increases to RPI capped at 3.5% per annum.
• We are of the opinion that the hotel is under rented and potentially reversionary on lease expiry.
• AccorInvest is one of the world’s leading hoteliers operating in 27 countries with over 761 hotels managed by Accor.
• Accor UK Business & Leisure Hotels Limited have a CreditSafe rating of 86/100 which reflects “Very Low Risk”.
• The property is held part freehold and part long leasehold for a term of 9,000 years from 1st July 1962 subject to a nominal ground rent of£50 per annum.
• We are instructed to seek offers over £7,175,000 (Seven Million One Hundred and Seventy-Five Thousand Pounds Sterling) for our clients part freehold/ part long leasehold interest, excluding VAT. A purchase at this level would reflect an attractive net initial yield of 7.00% assuming purchasers’ costs of 6.65%.
The building was constructed in 2013 with practical completion achieved on 19 August 2013. The building extends over seven floors with 146 guest bedrooms and ensuite facilities. Accommodation includes the main reception, communal toilets and staff areas to ground floor with guest bedrooms located on the upper floors. Plant rooms are located on the roof top and ground floor level.
The structural frame of the building is constructed in reinforced concrete with concrete ground and intermediate floors. The main roof comprises a warm deck roof construction weathered in a polymeric single ply roofing membrane laid over insulation. The external walls generally consist of cavity construction at ground level comprising external facing brick and internal concrete block work. The upper floors are provided with a ‘Sto’ external insulated cladding system with walls dry lined internally.
Fortress steel external door sets are located at the service entrance, ground floor lift lobby, roof top plant room and ground level plant rooms and the property has aluminium framed double glazed windows. Internally finishes typically comprise of suspended ceilings, plastered and painted walls, timber doors with laminated finish and a mix of carpet and vinyl floor coverings.
In terms of M&E the property is serviced by two 10 person lifts, heating and cooling is provided by a Variable Refrigerant Volume (VRV) air-conditioning system and hot water generated from 2 condensing gas fired boilers.
We understand the total gross internal floor area is approximately 38,100 sq ft (3,540 sq m).