INVESTMENT SUMMARY. Edinburgh is Scotland s capital city, with a population of 487,500.

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3 INVESTMENT SUMMARY Edinburgh is Scotland s capital city, with a population of 487,500. George Street is one of Edinburgh s prime retail and leisure pitches, with several high-end fashion and designer retailers, and a recognised bar/nightclub/restaurant destination. Comprises a prime retail unit with a bar/nightclub at basement level. Retail unit let to Laura Ashley Limited (D&B: 5A1) until 28/01/2021 (3.4 years remaining) at a rental of 300,000 per annum ( psf ITZA). Basement let to Belhaven Brewery Company Limited (D&B: 5A1) guaranteed by Belhaven Pubs Limited (D&B: 5A1), and sublet to Montpeliers (Edinburgh) Limited t/a Opal Lounge (D&B: 4A2) until 14/01/2026 (8.4 years remaining) at a rental of 145,000 per annum ( psf). Total income of 445,000 per annum. We are instructed to seek offers in excess of 8,000,000 (Eight Million Pounds) exclusive of VAT for the benefit of our client s heritable interest. A purchase at this level would provide a net initial yield of 5.24%, after allowing for purchasers costs of 6.18%.

4 Location Edinburgh is Scotland s capital and main financial/administrative centre, housing the Scottish Parliament and the Scottish Government. The city is not only the seat of both local and national government, but also home of the judiciary and the arts. Edinburgh has a population of 487,500 within the city, increasing to 1.3m within the Lothians, Fife and Scottish Borders catchment area. Edinburgh is the only place in Scotland to benefit from having two UNESCO World Heritage Sites within its boundaries - the Old and New Town as well as the Forth Bridge - and is therefore a major tourist destination, attracting around 3.45 million visitors a year. It is the most visited tourist destination in the UK after London and enjoys the second highest hotel occupancy rate in Europe. There are eight universities and further education colleges in Edinburgh, with almost 80,000 students studying in the city. There has been significant recent investment in city amenities and visitor attractions. This includes the 47m refurbishment of the National Museum of Scotland, which last year became the most visited attraction outside London; the 37m refurbishment of the Commonwealth Pool, which reopened in Spring 2012 and was used in the 2014 Commonwealth Games; the 295m upgrade of Waverley train station; the 25m Haymarket Interchange and the 60m extension of the Edinburgh International Conference Centre. 4

5 Prime Investment For Sale Edinburgh is Scotland s capital and main financial and administrative centre, housing the Scottish Parliament and the seat of the Scottish Government. Communications Air Rail Road Edinburgh International Airport is the sixth largest international airport in the UK and is located 8 miles west of the city centre. There were 33 airlines that served 188 routes, with 12.4 million passengers travelling through the airport in 2016, up 11% on The airport has direct links to many European destinations as well as North America and the Middle East. Edinburgh s two main rail stations, Waverley and Haymarket, are situated within Edinburgh city centre. The stations provide direct train services to and from London on the east coast rail network and are easily reached from other main English towns and cities, as well as providing Scottish services to all major centres. Both rail stations have seen multi-million pound refurbishments and upgrading programmes to cope with the increased demand in passenger numbers. Edinburgh benefits from excellent road communications with direct access into the national motorway network. The city is served by the M8 from the west (Glasgow and Livingston), the M90/A9 from the north (Aberdeen and Inverness) and the A1 and A7 from the south/south east (the Borders, East Lothian and Newcastle). Trams The city s new tram system commenced operations in May Edinburgh Airport is now connected with Haymarket, Princes Street and St Andrew Square with services terminating at York Place. 5

6 Situation THE SUBJECT PROPERTY IS SITUATED IN THE PRIME SECTION OF GEORGE STREET BETWEEN FREDERICK STREET & HANOVER STREET. George Street is home to a mixture of uses retail, office and leisure. George Street is considered to be one of Edinburgh s best retailing pitches, with several high-end and designer fashion retailers represented, and a number of new entrants. This includes Hollister, Jigsaw, Coast, Paperchase, French Connection, Kiehl s, TM Lewin, Anthropologie, Lululemon, Karen Millen, Church s Shoes, Fat Face and Sweaty Betty. George Street is also one of Edinburgh s strongest leisure pitches, with occupiers including Tigerlily, Jamie s Italian, All Bar One, Le Monde, Café Andaluz, Browns, Hard Rock Café, JD Wetherspoon, Principal George Hotel and The Dome. FREDERICK STREET THISTLE STREET SOUTH WEST LANE GEORGE STREET 6

7 Prime Investment For Sale Description 51-51a George Street comprises a city centre property of traditional stone construction under a pitched, slate covered roof incorporating flat sections. It provides a self-contained retail unit laid out over ground and first floors, with a basement nightclub/bar laid out over lower ground, second (rear) and third (rear) floors. Interested parties should be aware that the second and attic levels of the front building (fronting George Street) are outwith ownership and in office and residential use respectively. Similarly, the West-most section at basement level which is used by Opal Lounge is also outwith ownership. Further detail and clarification can be provided. We are advised that the property is Category B listed and located within the New Town World Heritage site. Under current legislation listed properties are exempt from payment of vacant rates. RETAIL 51 George Street Laura Ashley The retail accommodation is predominantly laid out over ground floor, with additional sales accommodation at first floor to the rear and ancillary/office space to the first floor of the front section of the unit. Once inside, the space opens up into two large sales areas in the middle of the unit, both of which have impressive floor to ceiling heights and roof lights providing excellent levels of natural daylight. The unit has a stone frontage and is accessed up steps. NIGHTCLUB 51A George Street Belhaven Brewery / Opal Lounge The nightclub is predominantly laid out over basement level, with additional ancillary accommodation at the second and third floors of the rear building accessed by stairs. The unit is accessed down stone steps to the front of the unit directly off George Street. Internally, the unit is laid out in three sections, with the West-most section being outwith ownership (see plans). 7

8 Tenancy & Rental Levels Demise Tenant (Guarantor) Lease Start Lease Expiry Next Review Date Retail Floor Area sq ft 51 George Street Laura Ashley Limited /01/ /01/2021 n/a 7,051 (NIA) Nightclub 51a George Street Belhaven Brewery Company Limited SC (Guaranteed by Belhaven Pubs Limited) SC Floor Area (ITZA) sq ft 1,794 less 10% 15/01/ /01/ /01/2021 6,149 (GIA) n/a Tenure Heritable (Scottish equivalent of English freehold) 8

9 Prime Investment For Sale Rent Rent (sq ft) Comments 300, psf ITZA Historic floor area of 1,645 sq ft ITZA less 15% end allowance was determined at 2006 rent review. 145, psf Sublet to Montpeliers (Edinburgh) Limited on a co-terminous basis. Tenant (and sub-tenant) have option to extend for a further 25 years from expiry. 9

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12 Covenants Laura Ashley Limited were registered in 1954 and are rated by Dun & Bradstreet as 5A1. Financial Year to 30/06/2016 Financial Year to 31/01/2015 Financial Year to 25/01/2014 Turnover m m m Pre-Tax Profit 25.82m 22.36m 19.14m Equity Shareholders Funds m m m OPAL LOUNGE Belhaven were acquired by Greene King in Greene King are the UK s leading pub company and brewers, and a constituent of the FTSE 250. Tenant: The Tenant to the lease, Belhaven Brewery Company Limited were registered in 1944 and are rated by Dun & Bradstreet as 5A1. Financial Year to 01/05/2016 Financial Year to 03/05/2015 Financial Year to 04/05/2014 Turnover Pre-Tax Profit 4.12m 3.91m 3.78m Equity Shareholders Funds m m m Guarantor: The Guarantor to the lease, Belhaven Pubs Limited were registered in 1993 and are rated by Dun & Bradstreet as 5A1. Financial Year to 01/05/2016 Financial Year to 03/05/2015 Financial Year to 04/05/2014 Turnover Pre-Tax Profit 0.72m 0.83m 0.65m Equity Shareholders Funds 61.69m 60.97m 60.14m Sub-Tenant: The Sub-Tenant to the lease, Montpeliers (Edinburgh) Limited were registered in 1996 and are rated by Dun & Bradstreet as 4A2. Financial Year to 20/04/2016 Financial Year to 26/04/2015 Financial Year to 27/04/2014 Turnover 15.60m 15.81m 15.45m Pre-Tax Profit 0.85m 1.37m 1.44m Equity Shareholders Funds 16.83m 19.64m 14.64m 12

13 Prime Investment For Sale Accommodation Laura Ashley Net Internal Area sq m sq ft Ground Floor Sales ,703 First Floor Sales First Floor Offices/Ancillary (Front) First Floor Ancillary (Rear) Total Net Internal Area ,051 Reduced Floor Area (ITZA) 1,794 sq ft less 10% end allowance Opal Lounge Gross Internal Area sq m sq ft Lower Ground Floor ,199 Second Floor Rear (Ancillary) Third Floor Rear (Ancillary) Total GIA ,149 Floor Plans First floor Ground floor Lower ground floor THISTLE STREET SW LANE THISTLE STREET SW LANE THISTLE STREET SW LANE GEORGE STREET GEORGE STREET GEORGE STREET Second floor rear Third floor rear KEY Laura Ashley Belhaven (White area outwith ownership) Plans not to scale, colouring approximate and for identification only. 13

14 VAT The subject property is elected for VAT. We expect the transaction to be structured as a Transfer of a Going Concern (TOGC). EPC Copies of the Energy Performance Certificates (EPC) are available upon request. Proposal We are seeking offers in excess of 8,000,000 (Eight Million Pounds) exclusive of VAT for the benefit of our client s heritable interest. A purchase at this level would provide a net initial yield of 5.24%, after allowing for purchasers costs of 6.18%. Viewing and Further Information Please contact the selling agents. ROSS BURNETT T E ross.burnett@montagu-evans.co.uk W montagu-evans.co.uk CONOR SCOTT T E conor.scott@montagu-evans.co.uk W montagu-evans.co.uk to THISTLE STREET SOUTH WEST 25a 3 PH to to a TCB to to to 61 GEORGE STREET 44a Ardmore House TCBs Boundary shown approximate and not to be relied upon. The Agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representations or warranty whatever in relation to this property. September

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