Regent Centre, Kirkintilloch, G66 1JH. A Shopping Centre Investment Opportunity

Transcription

1 Regent Centre, Kirkintilloch, G66 1JH A Shopping Centre Investment Opportunity

2 Regent Centre, Kirkintilloch Investment Summary Kirkintilloch is a desirable commuter wn, 9 miles north east of Glasgow. Kirkintilloch forms the dominant wn centre offering within the East Dunbarnshire area, including the nearby conurbations of Lenzie and Bishopbriggs. The catchment population within 5 miles is 150,375 people. The Regent Centre forms the prime retailing pitch and contains the only Tesco within the area. The centre provides a covered mall arranged over two levels and extends 79,072 sq. ft. The two srey roof p car park, which provides 190 free spaces, forms the main parking provision in the wn. Footfall is 2.3 million people per year. Anchored by a 33,353 sq. ft. Tesco Metro, Boots, Superdrug and oundland. Gross income of 940,917 per annum and a net income of 681,944 per annum. Held on a long leasehold expiring on 31 December 2139, with the ground rent being 10% of the rent receivable. Attractive income profile with the potential drive the asset forward through active management. Offers in excess of 6,425,000 (Six Million Four Hundred and Twenty FIve Thousand ounds Sterling) representing a net initial yield of 10.00% after allowing for purchaser s costs of 6.15% based on Scotland s Land and Buildings Transaction Tax (LBTT).

3 Location Situation Kirkintilloch is a desirable commuter wn within East Dunbarnshire, 9 miles from Glasgow and 21 miles south west of Stirling. East Dunbarnshire has a population of 105,026 (Census 2011) and within a 5 minute drive time of the centre the population is 150,375 (2012 population estimate Census 2011). The wn benefits from excellent transport links with easy access Glasgow, making it an attractive place for commuters. The M80 Stepps bypass forms a crucial part of Scotland s morway network connecting Glasgow and the west of Scotland with Stirlingshire, Falkirk and Grangemouth. Kirkintilloch is served by Lenzie Railway Station which is located 1.4 miles south of the Regent Centre. Frequent bus services connect Kirkintilloch with Glasgow, Stirling and neighbouring wns. Woodilee Village between Kirkintilloch and Lenzie is currently subject significant residential development. 900 new homes will be built on 210 acres of land between Lenzie and Kirkintilloch, where ersimmon, Miller, Charles Church and CALA are providing a range of modern flats and family homes. The new village of Woodielee will considerably increase the catchment of the Regent Centre. The Regent Centre is situated in the heart of Kirkintilloch wn centre with the main entrance fronting the Cowgate, which is the prime retailing thoroughfare in the wn. Surrounding occupiers include New Look, M&Co and Bank of Scotland. Kirkintilloch Edinburgh Glasgow Newcastle Manchester Birmingham London A811 A82 Greenock A8 Bearsden M8 Bishopbriggs Clydebank Irvine aisley A737 A71 A78 A77 M77 Kilmarnock Kirkintilloch Glasgow A725 Stirling M80 Hamiln East Kilbride M9 M80 Denny Airdrie Motherwell Douglas A91 A92 Falkirk Cumbernauld M8 Dunfermline A985 M9 A90 Livingsne A702 A703 A72 M74 Kirkcaldy EDINBURGH A1 A720

4 Regent Centre, Kirkintilloch Ground Floor I LOVE FASHION LADIES & MENS WEAR LIFT STS 19 ROBINSONS THE JEWELLERS OY LOVE FLORIST THOMSON 1 TRAVEL AGENT BETFRED 2 BETTING OFFICE TURRET 3 CLOTHING 4 BRIGHTHOUSE 5 93 THE 99 B H F 101 CHAR SH CO-O HARMACY OTICAL EXRESS OTICIAN AMUSEMENTS CHIS & CO 111 T/A BAGUETTE EXRESS S/W BAR A CONLON 119 ELEC/GAS AS S HAIRDRESSING CAABILITY SCOTLAND CHAR SH DISTI RE EST GEMINI CARDS EN SERVICE YARD 10 Description The centre was developed in 1991 and forms a covered mall comprising 17 retail units anchored by supermarket. 10 of the retail units have a frontage on the Cowgate. Arranged over ground and first floors the centre provides a net lettable area of approximately 79,072 sq. ft. (7,346 sq. m.). The main entrance the mall is situated on the Cowgate and there is through access in the mall from Tesco and oundland. Car parking is provided over 2 levels offering 190 spaces. The car park was resurfaced in Ocber STORE KERR STREET BANK BANK OF SCOTLAND HONE & COM CENTRE GALLACHER & CO SOLIC 108 AMERICAN NAILS BEAUTY SALON CLYDESDAL V

5 First Floor WC SOLE TRADING COMANY SHOE REAIRS 18 QERO FAST FOOD SEATING I LOVE FASHION STORE OFFICE LADIES & MENS WEAR LIFT STS 19 VOID ROBINSONS THE JEWELLERS OY LOVE FLORIST THOMSON TRAVEL AGENT BETFRED BETTING OFFICE 1 ROOF 2 TURRET 3 CLOTHING TH 99 B H F 101 STORES FOR GROUND FLOOR RETAIL UNITS BRIGHTHOUSE SERVICE YARD CHAR SH CO-O HARMACY OTICAL EXRESS OTICIAN AMUSEMENTS CHIS & CO 111 T/A BAGUETTE EXRESS S/W BAR A CONLON 119 ELEC/GAS AS S HAIRDRESSING CAABILITY SCOTLAND CHAR SH DISTI RE EST GEMINI CARDS EN STORE KERR STREET BANK BANK OF SCOTLAND HONE & COM CENTRE GALLACHER & CO SOLIC 108 AMERICAN NAILS BEAUTY SALON CLYDESDAL R

6 Regent Centre, Kirkintilloch Tenancy Schedule The centre is well secured with national retailers accounting for 94% of the gross income. Tesco is the main anchor and accounts for 49% of the current gross income. Address Tenant Name Lease Start Lease Expiry Next Rent Review Area sq ft ITZA Rent (pa) Comment Unit 1 TUI UK Ltd t/a Thomson 16-Dec May-16-1, ,720 - Unit 2 Done Bros (Cash Betting) Ltd t/a Betfred 07-Jul Jul Jul-16 1, ,000 - Unit 3 Cumming (Leven) Ltd t/a Turret Clothing 01-Mar May-16-2,455 1,015 - Tenant is in administration, lease remains for rates mitigation purposes. Unit 4 Vacant , Unit 5 Brighthouse ,000 New 10 year lease with a TBO in years 3 and 5, dates TBC. Unit 6 oundland Limited 07-Jun Jun Jun-15 14,532 3,431 90,000 Service charge cap 5,000 pa. Unit 7 Vacant , Unit 8 Optical Express Ltd 27-Oct Oct-15-1, ,900 Tenant looking regear. Unit 9 Boots the Chemist Ltd 18-Feb Feb-16-7,047 3,567 85,000 Do not contribute marketing or management fee. Unit 10 Scottish ower UK lc 10-Jun May-16-1, ,750 Tenant not in occupation. Unit 15 Brian Robinson t/a Robinsons the Jewellers 01-May Apr ,873 Occupy under licence. Unit Fashion Clothes Ltd 05-May Jan-15-4,572 2,762 14,040 Occupy under licence rolling on month month, inclusive of service charge.. Unit 19 Superdrug Sres lc 19-Aug May-16-3,999 1,340 62,000 - Unit 20 Jean Logan t/a uppy Love Florist 31-Oct May ,000 - Kiosk John Flanagan t/a Sole Trading Co 30-Jan Jan ,500 - Food Court Qero Fast Food 04-Feb Feb ,833 - Supermarket Tesco Sres Ltd 05-Nov May-16-33, ,250 Area GIA. Managers believe shop refit scheduled. ATM Machine Tesco Tesco ersonal Finance lc 01-Sep May Sep ,423 Break options annually on 1st September. Commercialisation ,628-79, ,917

7 T 4 Income Tenure Service Charge The gross income is 940,917 per annum. Net of current occupational shortfalls the net income is 681,944 per annum. The current shortfalls are 258,973 per annum. A full breakdown of the non-recoverables can be provided on request. Commercialisation income accounts for 32,628 per annum. Income rofile* 7% 9% 4% 4% 4% 5% 2% 10% 6% 1% 49% Tesco Sres Ltd Independent oundland Limited Brighthouse Boots the Chemist Ltd Superdrug Sres lc Scottish ower UK lc Done Bros (Cash Betting) Ltd Optical Express Ltd Tui UK Ltd t/a Thomson Tesco ersonal Finance lc y Family and an's The subject property is held on a long leasehold from Kames Trustee Companies for a term of 150 years from January 1990 with approximately 126 years unexpired. The ground rent due is geared 10% of the occupational rents receivable during each year less permitted deductions. The head rent for the financial year 31 December 2014 was 82, Hall Car ark 53.6m Regent Gardens The service charge budget for the year ending 31 December 2015 is 438,151, which equates a rate of 5.54 per sq ft. Footfall The footfall for 2014 was 2,323,734 and in the first two months of 2015 the footfall figures were up 3.6% on the same period of The Regent Centre D Fn TCBs BROA o m C * Excludes Commercailisation s Centre Hall 5 % of Total Income* W Ramp Roof Car ark 10 3 Hall 6% National Retailers 854,043 TREET Ramp LB Council Office Independent Retailers 54, OXFORD El Sub Sta % Carnie Court 66 STREET

8 Regent Centre, Kirkintilloch Covenant TESCO STORES LIMITED (Company Number: ) has an Experian score of 83 which provides a Low Risk. BOOTS UK LTD (Company Number: ) has an Experian score of 100 which provides a Very Low Risk. OUNDLAND LIMITED (Company Number: ) has an Experian score of 100 which provides a Very Low Risk. Year Ending 26 Feb Feb Feb 2014 Year Ending 31 Mar Mar Mar 2014 Year Ending 1 Apr Mar Mar 2014 Turnover 41,981,000 42,662,000 42,547,000 re-tax rofit 2,126, ,000 1,696,000 Total Net Worth 6,894,000 3,113,000 3,038,000 Turnover 6,354,000 6,204,000 6,340,000 re-tax rofit 240, , ,000 Total Net Worth 234, , ,000 Turnover 780, , ,803 re-tax rofit 32,026 34,313 41,017 Total Net Worth 90, ,042 96,235

9 SUERDRUG STORES LC (Company Number: ) has an Experian score of 100 which provides a Very Low Risk. Year Ending 31 Dec Dec Dec 2013 Turnover 1,049,128 1,021,021 1,010,212 re-tax rofit 5,517-3,977 28,982 Total Net Worth 124, , ,235

10 Regent Centre, Kirkintilloch Asset Management There are a number of asset management opportunities improve the income stream and capital value of the Regent Centre including: In administration Seek re-gear the Tesco lease as they have confirmed that previous proposals move a larger sre have now been abandoned Let vacant units through active marketing Expiry Enhance income security through re-gears and lease extensions Expiries in 2016 provide opportunities re-gear with existing long term tenants I LOVE FASHION LADIES & MENS WEAR LIFT STS 19 ROBINSONS THE JEWELLERS OY LOVE FLORIST THOMSON 1 TRAVEL AGENT BETFRED 2 BETTING OFFICE TURRET 3 CLOTHING 4 BRIGHTHOUSE 5 93 THE 99 B H F 101 CHAR SH CO-O HARMACY OTICAL EXRESS OTICIAN AMUSEMENTS CHIS & CO 111 T/A BAGUETTE EXRESS S/W BAR A CONLON 119 ELEC/GAS AS S HAIRDRESSING CAABILI SCOTL C 12 EC SERVICE YARD 10 ECs for the centre have been undertaken and can be provided on request. STORE KERR STREET BANK BANK OF SCOTLAND 1 CO COM A V

11 WC SOLE TRADING COMANY SHOE REAIRS 18 QERO FAST FOOD SEATING I LOVE FASHION STORE OFFICE LADIES & MENS WEAR LIFT STS 19 VOID ROBINSONS THE JEWELLERS OY LOVE FLORIST THOMSON TRAVEL AGENT BETFRED BETTING OFFICE 1 ROOF 2 TURRET 3 CLOTHING TH 99 B H F 101 CHAR SH STORES FOR GROUND FLOOR RETAIL UNITS BRIGHTHOUSE CO-O HARMACY OTICAL EXRESS OTICIAN AMUSEMENTS CHIS & CO 111 T/A BAGUETTE EXRESS S/W BAR A CONLON 119 ELEC/GAS AS S HAIRDRESSING CAABILITY SCOTLAND CHAR SH DISTI RE EST GEMINI CARDS EN SERVICE YARD 10 STORE KERR STREET BANK BANK OF SCOTLAND HONE & COM CENTRE GALLACHER & CO SOLIC 108 AMERICAN NAILS BEAUTY SALON CLYDESDAL R

12 ricing We are instructed seek offers in excess of 6,425,000 (Six Million Four Hundred and Twenty Five Thousand ounds Sterling) subject contract and exclusive of VAT for the Long Leasehold interest in the subject property. A purchase at this level would reflect a net initial yield of 10.00% after allowing for purchaser s costs of 6.15% based on Scotland s Land and Buildings Transaction Tax (LBTT). For further information or arrange a viewing please contact: Sarah Stewart T: E: sarah.stewart@eur.cushwake.com Stephen Bibby T: E: stephen.bibby@eur.cushwake.com Andrew Marsden T: E: amarsden@lisney-belfast.com MISRERESENTATION 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 make or give representation or warranty whatever in relation 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 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 carry out their own investigations as required. July 2015.