SAUCHIEHALL STREET GLASGOW PRIME RETAIL INVESTMENT

Transcription

1 SAUCHIEHALL STREET GLASGOW PRIME RETAIL INVESTMENT

2 INVESTMENT SUMMARY Glasgow is Scotland s largest city, widely acknowledged as the UK s best retail centre outside London Glasgow has a catchment spend of 10.08bn Current income of 250,000 pa Prime retail opportunity Let to WAULT of 9.36 years (7 years to breaks) Absolute Ownership (Scottish equivalent of English Freehold) Offers in excess of 3,145, % niy after allowing for purchaser s costs 2 Cushman & Wakefield

3

4 GLASGOW IS SCOTLAND S LARGEST CITY AND AN ECONOMIC, CULTURAL AND ACADEMIC HUB 1.13bn MUST SEE DESTINATION FOR 2016 National Geographic Traveller The 1.13 billion Glasgow City Region City Deal will deliver significant infrastructure improvements over the next few decades 1.86m primary catchment population 7% gva Top UK city for economic recovery Gross Value Added grew 7% across , higher than any other UK core city 4 Cushman & Wakefield

5 Glasgow is committed to ongoing business development, with a diverse economy and support for inward and foreign investment 564m SPEND Events such as the 2014 Commonwealth Games and MTV European Music Awards attract annual tourist numbers of over 2 million and a spend of 564 million 67,000 STUDENTS More than 67,000 students study at Glasgow s prestigious universities and further education institutions 40% of Glasgow s population hold a degree or professional level qualification, providing a highly educated population World-class facilities such as the SSE Hydro Arena, Scottish Exhibition and Conference Centre and The Emirates Arena accommodate major music, business, cultural and sports events Cushman & Wakefield 5

6

7

8 THE UK S BEST REGIONAL RETAIL CENTRE With over half a million square metres of retail space, Glasgow is the largest UK shopping destination outside London. It is also the most successful, ranking 2nd in CACI s UK Retail Ranking and placing it in the top 20 super league of major European shopping destinations by commercial expenditure. Within a 30 minute drive time from Glasgow, the comparison goods spend is 4.85 billion per annum whilst convenience expenditure is 5.23 billion per annum. The city is ranked as having the highest catchment spend available out of the top UK retailing centres. Sauchiehall Street is one the strongest retailing pitches within Glasgow. The property lies within a pitch containing the big footfall generators of TK Maxx, Primark, Marks & Spencer and Boots. Glasgow City Council is committed to ensuring the success of Sauchiehall Street and has identified the area as the pilot regeneration framework district under the Glasgow City Centre Strategy & Action Plan This will combine long term policy with short term initiatives/ projects to create a high quality, people first place. Rents on the street peaked at Zone A rates of over 150 per sq ft and have subsequently rebased to around 100 per sq ft Zone A, so the street offers good potential for rental growth going forward. The owners of the Sauchiehall Centre (opposite the subjects) have recently announced plans to create two restaurant units on each corner, attracting interest from national occupiers. The announcement follows the letting of the former JJB store to Sports Direct for 10 years and WH Smith agreeing a lease extension for a further 10 years. Pure Gym have also increased their space and extended their lease to provide an unexpired term of 14 years. This activity shows long-term occupier and landlord commitment to this pitch, as well as the openness and flexibility of Glasgow City Council to considering alternative uses, in light of the changing retail environment. Ranked as having the highest catchment spend available out of the top UK retailing centres 10.08bn catchment spend 8 Cushman & Wakefield

9 Cushman & Wakefield 9

10

11 Sauchiehall St has the potential to become a significant jewel in the crown, building on its historical and present day assets (Glasgow City Council Regeneration framework)

12 UNDER OFFER UNDER OFFER OFFICE SITUATION The subject block is located within Glasgow s prime retail Z, on the pedestrianised section of Sauchiehall Street. The subject units are adjacent to Boots and opposite Primark, and other nearby occupiers include Marks & Spencer and Glasgow s iconic Willow Tea Rooms. 12 Cushman & Wakefield

13 DESCRIPTION The subjects comprise three retail units within an attractive Grade B Listed building, arranged over ground, basement and first floors. Costa Coffee trades from a prominent unit on the corner of Sauchiehall Street and Cambridge Street, while Card Factory trades from the adjacent unit fronting onto Sauchiehall Street. Bodycare trades from the first floor of the unit fronting onto Cambridge Street. The units have been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and the approximate areas are as follows: 202 SAUCHIEHALL STREET CARD FACTORY 212 SAUCHIEHALL STREET COSTA COFFEE 6 CAMBRIDGE STREET BODYCARE AREA SQ M SQ FT AREA SQ M SQ FT AREA SQ M SQ FT Ground floor ,547 Ground floor ,437 Ground floor Basement Basement ,915 First Floor ,018 Total NIA ,478 Total NIA ,352 Total NIA ,170 ITZA ,045 ITZA ,002 Cushman & Wakefield 13

14 TENANCY TENANT COVENANT 202 Sauchiehall Street is let to Sportswift t/a Card Factory until 30th August 2021, with the tenant recently having removed their break option. The rent is 80,000 per annum, reflecting a Zone A rate of per sq ft. 212 Sauchiehall Street is let to Costa Limited until 11th January 2030, with a tenant break option on 12th January The rent is 115,000 per annum, reflecting a Zone A rate of per sq ft. 8 Cambridge Street is let to G&M Blackledge t/a Bodycare until 18th February The rent is 55,000 per annum, reflecting an overall rate of per sq ft. Card Factory sells greetings cards, gift wrapping and party supplies at value prices. The store was founded in 1997 and has consistently grown year on year, now operating from 800 stores across the UK. TENANT Sportswift t/a Card Factory YEAR TO DATE TURNOVER ( s) PRE-TAX PROFIT ( s) NET WORTH ( s) 31/01/ ,957,000 66,111, ,674,000 31/01/ ,182,000 69,243, ,073,000 31/01/ ,676,000 62,320,000 58,862,000 EXPERIAN RATING 99 (Very low risk) Costa Coffee is the second largest coffee chain in the world, set up by Sergio and Bruno Costa in London in Acquired by Whitbread in 1995, the chain has grown to over 2,861 stores in over 30 countries across the globe, and has been voted Best Branded Coffee Shop Chain in the UK and Ireland in six consecutive years. TENANT YEAR TO DATE TURNOVER ( s) PRE-TAX PROFIT ( s) NET WORTH ( s) EXPERIAN RATING Costa Limited 28/02/ ,959,000 93,927, ,951,000 27/02/ ,427, ,449, ,767,000 26/02/ ,974, ,221, ,814, (Very low risk) 14 Cushman & Wakefield

15 Bodycare is a discount toiletries store, set up as a market stall in Lancashire in 1970 by Graham and Margaret Blackledge. It trades from multiple high street and shopping centre stores across the UK. TENANT YEAR TO DATE TURNOVER ( s) PRE-TAX PROFIT ( s) NET WORTH ( s) EXPERIAN RATING G.R. & M.M. Blackledge Plc t/a Bodycare 31/12/ ,666,375 ( 924,357) 17,979,741 31/12/ ,655, ,024 18,501,727 31/12/ ,083,249 3,182,616 20,981, (Very low risk) 100% OF THE INCOME IS SECURED AGAINST NATIONAL RETAILERS RATED BY EXPERIAN AS VERY LOW RISK. Cushman & Wakefield 15

16 16 Cushman & Wakefield

17 TENURE The property is held Absolute Ownership (Scottish equivalent of English freehold). EPC EPCs for the units have been undertaken and are summarised below: UNIT RATING CO2 EMISSIONS* 206 Sauchiehall Street (Card Factory) 212 Sauchiehall Street (Costa) 6 Cambridge Street (Bodycare) D 55 D 51 F 83 * (kgco2 per m2 per year) VAT The property has been elected for VAT and therefore VAT will be elected on the purchase price. However it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). Cushman & Wakefield 17

18 PROPOSAL We are instructed to seek offers in excess of 3,145,000 (Three Million, One Hundred & Forty Five Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership (Scottish Equivalent of English Freehold) interest in the subject property. A purchase at this level would reflect a Net Initial Yield of 7.50% after allowing for purchaser s costs of 5.99% based on Scotland s Land and Buildings Transaction Tax (LBTT). FOR VIEWINGS & ENQUIRIES: Sarah Stewart Tel: +44(0) sarah.stewart@cushwake.com Stephen Bibby Tel: +44(0) stephen.bibby@cushwake.com Natasha Ross Tel: +44(0) natasha.ross@cushwake.com MISREPRESENTATION ACT Cushman and Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents and is free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. June 2016.