SAUCHIEHALL STREET

Transcription

1 FOR SALE PRIME LEISURE INVESTMENT SAUCHIEHALL STREET GLASGOW S ICONIC ABC CONCERT & MUSIC VENUE LEISURE AND RETAIL UNITS

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3 INVESTMENT SUMMARY Prime entertainment venue/nightlcub, bar & restaurant and retail investment Iconic building in one of Glasgow s main leisure destinations 2 leisure units, 2 retail units and a mobile mast Anchored by Tecjet Limited t/a O2 ABC expiring August 2039 Grade C Listed building Adjacent to Glasgow School of Art in the heart of Glasgow s student circuit Annual Rent of 454,529 pa WAULT of years Offers in excess of 6,000,000 reflecting a Net Initial Yield of 7.14% assuming purchasers cost of 6.14%

4 M8 CITY OF GLASGOW COLLEGE STRATHCLYDE UNIVERSITY GLASGOW CALEDONIAN UNIVERSITY BUCHANAN GALLERIES BUCHANAN BUS STATION QUEEN STREET STATION BUCHANAN STREET COWCADDENS SUBWAY STATION SAUCHIEHALL STREET BLYTHSWOOD HOTEL GLASGOW SCHOOL OF ART GLASGOW KELVIN COLLEGE DAKOTA HOTEL GLASGOW DENTAL HOSPITAL AND SCHOOL KING S THEATRE PREMIER INN M8 CHARING CROSS NORTH / M80 / EDINBURGH CHARING CROSS STATION GLASGOW UNIVERSITY SOUTH / M77 / GLASGOW AIRPORT

5 GLASGOW LEISURE Glasgow is Scotland s largest city with a population of over 600,000 and a core catchment of 1.86m people. The city benefits from excellent communication links via the M8 motorway network. It is well served by 2 major train stations, a bus station and Glasgow International Airport. Sauchiehall Street is one of Glasgow s principle retail and leisure destinations catering predominantly to the needs of the student and young professional. It has a mix of national and local leisure operators including Nando s, Weatherspoon s, O Neil s, Yates s and Pizza Express. 02 ABC is the focus of activity on Sauchiehall Street with the 02 providing a popular gig venue and nightclub. Sauchiehall Street has the highest number of late night licences in the city. The City Centre has a large vibrant leisure market with a large number of national chains represented along with a strong local offering. There has been a significant expansion in the city in the last 24 months with large number of new national operators taking space including Las Iguanas, Prezzo Giraffe, Five Guys, Chimichungas and Gourmet Burger. Headline rents are now 35-40psf. SITUATION The property is located in the prime leisure pitch of Sauchiehall Street. In addition to the numerous bars and restaurants the property is located close to the prime Sauchiehall Street retail pitch where M&S, TK Maxx and Primark are located. Glasgow s office district is located nearby. There is a large resident student population in close proximity. Glasgow University, Strathclyde University, Glasgow School of Art, Glasgow Caledonian University, City of Glasgow College and Glasgow Kelvin College are all located within a 15 minute walk of the subjects. There are currently in excess of 67,000 people enrolled in higher education in Glasgow. DESCRIPTION The property comprises a Grade C listed building with extensive frontage onto Sauchiehall Street. The 02 ABC comprises a main stage and associated viewing space/ dance floor, a second stage and a number of bar areas over 3 levels. The venue has capacity for 1,712 people. Numerous famous bands have performed in the O2 ABC including Wu Tang Clan, Average White Band, Eagles of Death Metal, The Fratellis & Macy Gray Campus Bar, Restaurant and Nightclub Retail Unit Retail/Takeaway Unit Mobile Mast

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7 PLANNING The adjacent building, which completes this block and is under the same ownership, is to be redeveloped in order to raise the profile of the block by providing student accommodation with commercial/leisure space at ground floor. The pre-application planning process in underway and a planning application will be lodged in the early course. Plans of the proposed development can be provided on request. TENANCY COVENANT Tecjet Ltd trade as 02 ABC Glasgow. In the year to 31/12/2014 Tecjet Ltd reported a turnover of 3,764,489 a pre-tax profit of 441,317 and a net worth of 1,589,344. Tecjet Ltd has an Experian credit score of 100/100 and is a subsidiary of Live Nation Entertainment Inc the world s largest entertainment company. GLR Trading Ltd trade as Campus. In the year to 31/10/2014 GLR Trading Ltd had a total net worth of 157,031. GLR Trading Ltd have an Experian credit score of 80/100. City Cutz Ltd were have been trading since November 2008 and have an Experian credit score of 82/100. In the year to 31 March 2015 Cornerstone Telecommunications Infrastructure Ltd reported a turnover of 277,074,000 and a net worth of 792,011,000. Unit Name Tenant Name Term Start Date Term End Date Unexpired Term Next Review Contracted Rent PA Floor Areas SQ FT Rent PSF Comments 304 Sauchiehall St Mrs Khalida Tariq t/a Wokway 15/10/13 14/10/ /10/18 45,000 GR 1,411 (ITZA 1,037) ( 43.39) Sauchiehall St Tacjet Ltd t/a 02 ABC 25/08/04 24/08/ /08/14 230,000 GR 1,076 1st 7,271 2nd 17, Sauchiehall St City Cutz Ltd 24/04/15 23/04/ /04/20 21,000 GR 441 (ITZA 441) Sauchiehall St GLR Trading Ltd t/a Campus 06/12/13 05/12/ /12/15 145,000 B 2,153 GR 8,413 1st 8, Rent 120,000 pa to 05/12/17. To be topped up by vendor. Mobile Mast Cornerstone Telecommunications Infrastructure Ltd ,529 - New 20 Lease being documented. Year 5 TBO Total 454, 529

8 EPC A copy of the EPC reports can be made available on request. VAT The property has been elected for VAT and therefore VAT will be chargeable on the purchase price. However, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC). TENURE Heritable (Scottish equivalent of English Freehold). PROPOSAL Offers in excess of 6,000,000 representing a Net Initial Yield of 7.14% assuming purchasers cost of 6.14%. FURTHER INFORMATION For further information or to arrange an inspection please contact: Drew Lambert awl@reithlambert.co.uk Ewan Cartwright ewan@reithlambert.co.uk David Thorburn david@reithlambert.co.uk MISDESCRIPTIONS: Reith Lambert LLP for themselves and for the vendor of the property give notice that: i) these particulars of sale are a general outline for the guidance of intending purchasers and do not constitute all or any part of any offer or contract. ii) intending purchasers should satisfy themselves as to the accuracy of descriptions, dimensions, references to condition, permitted use and other details all of which are given without any warranty whatsoever. iii) unless otherwise stated all rents and prices are quoted exclusive of VAT. iv) they have not conducted and are not aware of any investigations into any potential or actual pollution or contamination of the building, land, air, or water and give no warranties whatsoever in respect thereof, of which prospective purchasers should satisfy themselves. v) in accordance with the terms of the Requirements of Writing (Scotland) Act 1995 these particulars are not intended to create any contractual relationship or commitment which can only be entered into by exchange of missives between respective solicitors. Date of Publication: February 2016.