Where business meets culture
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SUMMARY
Business at the heart of the city, and the centre of it’s culture.
juNQtion is an exciting new investment opportunity located in Manchester’s Northern Quarter, the creative and tech district of the city and the city’s most exciting growth area. Akin to London’s Shoreditch or New York’s Soho, the Northern Quarter is seeing a boom in new businesses, with it boasting the quickest growing cluster of tech businesses in the UK. This is driving strong demand for contemporary, quality office space that is available on flexible terms as these businesses want the ability to grow quickly. juNQtion is providing this high quality flexible office space that exactly meets this demand.
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SUMMARY
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The property is located within just 4 minutes walk to Piccadilly train station, Manchester’s main train station, providing access nationwide as well as being the terminus station of the proposed High Speed Rail line, HS2, which will connect Manchester and London in just 1 hour. Typically this asset class is dominated by pension funds and private equity funds acquiring whole buildings and the opportunity for private investors to gain exposure to this sector is very limited. We are offering investors an opportunity to invest in to this exciting asset class in this high growth market that is both affordable and professionally managed as a hands-off investment.
Q4 2018
£60k 6% Plug & Play Refurbishment of existing building with completion due Q4 2018
Prices starting at £60,000
Professional management offering investors a complete hands-off investment experience
Units come fully furnished offering “plug-and-play” solutions for tenants and no additional cost for investors
Rents guaranteed for 5 years at an average of 6% net
BENEFITS
Royal Institution of Chartered Surveyors
Q1 2017: UK Commercial Property Market Survey Sentiment continues to improve away from the capital Headline rental and capital value growth expected to accelerate once again
Two reasons difficult to argue with...
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Benefit directly from the strong economic growth in the city and shortage of high quality commercial space aimed at high growth tech, digital and service businesses who demand more flexible space
Multiple Ways to Rent & Generate Profits:
– Long-Term Tenants – Serviced Offices – Co-Working Spaces
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MANCHESTER
WEL– COME TO MCR
Manchester, the second city of the UK and the centre of the economic “Northern Powerhouse”, is a thriving cosmopolitan city built upon an industrious legacy. Manchester’s prominence dates back to its status as the birthplace of the Industrial Revolution in the early 19th century. Then, many factors came together to propel Manchester to become the pre-eminent city of its time. Here in the early 21st century, there are many parallels that can be made in the city’s transition during the industrial revolution to the world’s leading industrial metropolis and now to a leading 21st century economy.
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MANCHESTER
Manchester is a city with many impressive statistics to its name. It was the world’s first industrialised city, home to the first public library and birthplace of the world’s first computer. It has the world’s oldest railway station and the oldest professional football league. JUNQTION
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It is also where scientists first split the atom and has been home to more than 25 Nobel Prize winners.
The UK’s government’s focus on the Northern Powerhouse has helped position Manchester as the North’s economic epicentre. The city has emerged as a natural choice for investment outside of London. – Voted best UK city to live by the Global Liveability Survey 2016 – Manchester ranked first in Europe for cost of doing business (KPMG) – Manchester airport provides direct flights to over 225 destinations - more than any other UK airport investment announced in to a new “super terminal” with work starting 2018
– The ten local authorities of Greater Manchester – Bolton, Bury, Manchester, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, and Wigan – represent the largest functional economic area outside London, with a population of 2.7 million and gross value added (GVA) of £56 billion – The fastest growing cluster of digital, creative and tech start-ups in the UK, with the Northern Quarter at the heart of this growth. The Northern Quarter have seen the number of digital firms located there increase by 70% over 3 years with Manchester recently being crowned the UK’s “capital of start-ups” with over 2000 firms created in the City in the last since March 2015
– Manchester’s GDP predicted by Oxford Economists to grow quicker than Berlin, Paris and Tokyo over the next 5 years (2016) – Manchester has the largest UK office market outside of London and has seen TWICE the investment of nearest regional rivals Liverpool – The largest financial services sector outside of London employing 324,000 people.
FLEXIBLE MARKET
It is no exaggeration to say that there has been a revolution in the workplace over the past few years.
Flexible workspace has moved from the fringes of the market to centre stage with demand continuing to grow year on year. Britain is at the forefront of this revolution, leading the way in offering a working environment that meets the needs of the 21st century occupier.
Key flexible office market statistics: – The flexible workspace market in the UK accounts for around 36% of the world market. – The UK flexible workspace sector is estimated to be worth £16bn using traditional valuation methods, although taking into account additional income from services supplied by operators it has been estimated it is worth close to £19bn. This could rise to £62bn by 2025.* – With 52% of global office space either vacant or unused, the expectation is that the flexible workspace market will increase significantly– currently, it represents 8% of global office space.**JLL estimates that 30% of office space will be co-working space by 2030.
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Drivers of the flexible workspace market
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The industry sprang up as a result of operators challenging the traditional lease model offered to tenants. Tenants took to this new flexible model as it did not tie them into longterm conventional leases and the financial commitments these involved.
The original serviced offices were, and continue to be, attractive to occupiers for several reasons, including:
Financial Risks
Plug And Play
Occupiers are not required to make a long-term financial commitment by entering into a lease for a fixed number of years. As a result, occupiers can grow or contract as their business needs change.
The legal process for taking space in a serviced office is infinitely easier and quicker than entering into a lease.
Low Set Up Costs
Pay-As-You Go
This makes serviced offices particularly attractive to start-ups.
Occupiers pay a fixed amount per desk or room, with extras such as meeting room hire, furniture and printing services paid for separately.
There is no requirement to spend large amounts on rent deposits, legal expenses, or fit out and infrastructure costs such as telephone systems, printers, etc.
Occupiers can move in within days or even hours.
MARKET
The digital revolution is here
This has transformed the way people work. Millennials are now the largest section of the workforce and Deloitte estimates that by 2025 they will make up 75% of the global workforce. They demand to work in a different a way. They see their workplace as a destination, and more than a place to work. It needs to be an enticing mixed-use environment, offering space to relax and collaborate, as well as work. Employers realise that a key to attracting and keeping staff is to give them the ‘club’ like atmosphere they expect.
New Business Practice
Small Business Explosion
Businesses recognise that the flexibility offered by new technology means they can look at property resources in a different way. With employees spending more time working on the road or at home, there is no need for a fixed desk policy.
One of the by-products of the technological revolution is the doors it has opened for startups. The internet offers a level playing field for entrepreneurs and has cut down barriers to entry in many sectors. As a result, the UK has become a country of SMEs. At the start of last year, there were 5.5m private sector businesses in the UK, an increase of 2m since 2000.
Companies across a range of sectors, including professional services firms, are abandoning the traditional office model in favour of space that offers more flexibility and a collaborative environment.
A record 342,927 new companies were set up between January and June 2016 compared with 608,110 for the whole of 2015, itself a record year. Flexible workspace is ideal for small businesses. It offers room to grow as employees join and a supportive environment in which to work.
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GROWTH
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Forecast growth in the tech economy and service sectors
9,700,000 It is estimated that by the end of 2017, there will be 9.7m office-based jobs, an increase of 1m on 2016 figures. Many of these will be employed in finance, professional services, IT and communications, all sectors that use flexible workspace heavily.
NEWS
NEWS
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Blackstone, the world’s largest property investor by assets, has purchased a majority stake in The Office Group, a UK pioneer in flexible office space.
The Carlyle Group Enters London Flexible Office and Co-Working with Commitment to invest £150m into launch of ‘Uncommon’ Brand.
The US buyout group, which has about $100bn in assets under management, said the transaction will value TOG, whose clients include AOL, Dropbox and Pinterest, British Gas and Santander, at £500m
The first acquisition comprises an operating business and an 18,000 sq ft operational asset in Islington, which is to be rebranded as ‘Uncommon’.
Blackstone buys UK pioneer in flexible office space
Two further properties have also been acquired of 25,000 sq ft and 26,00 sq ft
Source: PropertyWeek.com 7/6/2017
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LOCATION
Voted the hippest place to live in the UK in the UK Hip Hangout Neighbourhood Index and voted second coolest place to live by the Times newspaper. One journalist for the New York Times heaped praise on the ‘entrepreneurial spirit’ of the area.
The Northern Quarter is home to a significant number of businesses and a growing digital, media and technology based sector, as well as creative and cultural industries. The Northern Quarter has seen the number of digital firms located there increase by 70% over 3 years with Manchester recently being crowned the UK’s “capital of startups” with over 2000 firms created in the City in the last since March 2015. Junqtion is situated in the heart of this vibrant creative hub. Often compared to London and New York’s Soho districts, the Northern Quarter was historically the centre of Manchester’s cotton industry (the first cotton mill in the city was located in what is now the Northern Quarter) with many cotton mills and warehouses located in the area.
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These days the Northern Quarter is Manchester’s creative district. The area is home to a variety of independent shops, restaurants and art galleries offering art from local and international artists.
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Often described as a village within the city, the neighbourhood is one of the most vibrant and is considered by many to be the most hip neighbourhood in the city centre, resulting in it being one of the city’s most popular locations for multinational brands and creative businesses to locate to. The Government announced in early 2015 that the Northern Quarter would be designated a “Tech Hub”, given the popularity of the area for digital and IT start-up companies. This has firmly established the Northern Quarter as one of the favourite locations in Europe for digital and IT companies to locate to, driving a strong demand for high quality office accommodation in the neighbourhood to house the growing population of talented young professionals high growth businesses moving to Manchester.
LOCATION
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juNQtion is a new, inspiring, contemporary office space. We provide the end user with a high quality, cost effective, flexible workspace to suit the needs of a modern day business, with the on-site facilities to help the business grow and flourish.
OPPORTUNITY
Our office spaces are perfect for all, from new businesses, start-ups to large established companies, from 1 to 100+ staff. The centre manager will be on hand to take calls, greet visitors and even distribute post and parcels to tenants. We offer a stylish reception, breakout areas, boardrooms with the latest audio visual presentation equipment and refreshments. Kitchen areas include seating, cooking
facilities, dishwasher, hot and cold filtered water. High quality wash rooms are provided on each floor, with lift access to all levels. 24 hour CCTV monitoring means our tenants can relax in the knowledge that their business is protected around the clock. Access is available 24/7, as each tenant is provided with an electronic key fob personally coded to their suite. The whole workspace also benefits from superfast broadband.
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Rental Comparison of Serviced & Commercial Office For a 3-Men Office as of 28 August 2017
£1,200 /month
£1,170
/month
£978
/month
£546
/month
Average rental in The Hive, Northern Quarter
Average rental in Orega, Piccadilly Place
Average rental in Manchester City Centre
Average rental in JuNQtion
#1
Increasing Demand
Qualified Location
Jobs Growth Rate projected to Outperform Leading Capital Cities like Berlin, Tokyo, and Paris for the next 5 years (MIDAS, 2016)
The #1 City in the UK to locate Headquarters (Cushman & Wakefield, 2012)
Northern Quarter: Strong Rental Demand from Tech companies
City Centre Walking Distance to a planned Futuristic Transport ‘Super Hub’, Piccadilly Train Station (Manchester Evening News, 2016)
OPPORTUNITY
Stable, Secure, & Sustainable Investment
Attractive Returns
Choice Property Investment
Self-Invested Personal Pension (SIPP) Approved
Profit from Guaranteed Increasing Net Rental* Returns for 5 years
Professionally-Managed Property
Serviced offices industry projected to Grow 600% from ÂŁ20 billion in 2016 to ÂŁ120 billion in 2025 (Costar, 2016)
29% Property Price Growth forecasted over the next 5 years (JLL, 2017)
Commercial property excluded from additional 3% SDLT imposed on residential
Commercial Property: Rents & Capital Values expected to Accelerate in 2017 (RICS, 2017)
7%
Guaranteed Net Rental*
6.5%
Your special Offer: 5 Years of Guaranteed Increasing Net Rental* *As per sales and purchase agreement
6% 5.5% 5%
2018 - 2019
2019 - 2020
2020 - 2021
2021 - 2022
2022 - 2025