FOR SALE STRATEGIC SERVICING/ LOADING BAY INVESTMENT 3-15 ROSE STREET EDINBURGH, EH2 2PR
INVESTMENT SUMMARY Let to House Of Fraser (Stores) Limited on a lease expiring on 04 April 2040 Annual rental income of 52,168 per annum The next rent review is due on 5 April 2020 and is subject to a fixed increase by the lesser of 15.93% or RPI over the preceding 5 year period. Rent reviews are every 5 years thereafter to the open market rent A rare opportunity to acquire an integral part of the servicing of Jenners Department Store with long term development potential Offers in excess of 800,000 representing an attractive net initial of 6.21% and a capital value of 176.64 psf. All figures quoted assume the usual purchaser s costs including LBTT LOCATION Edinburgh is the capital city of Scotland with a population of approximately 498,800 and a regional population of more than 1.6 million. The city is the seat of Scotland s government as well as the UK s second financial centre with 500 billion worth of funds under management. Edinburgh attracts 3.5 million tourists every year and is the second most visited city in the UK after London. In addition, the city is host to the world s largest annual arts festival adding an estimated 245 million to the local economy. The city is also home to four universities and over 100,000 students. High value service industries account for 86% of Edinburgh s employment. It is therefore not surprising that Edinburgh s gross value added (GVA) per head is 1.7 times the UK average, totalling 34,562. SITUATION 3-15 Rose Street is situated on Rose Street, toward the eastern end of the street, around 100m from St Andrew Square. QUEENSFERRY ST MELVILLE ST SHANDWICK PL MORAY PLACE GLOUCEST ER LANE CHARLOTTE ALBYN PL LOT HIAN R OA D HERIOT R OW C A S T L E S T QUEEN STREE T GEORGE STREE T Edinburgh Castle H ANOVER S T ST ANDREW SQUARE SQUARE P R INCES S T REE T Bus Station Waverley Station HIGH STREET ST CEN NORTH BRID SON ST CASTLE TERR T ST HOWE ST N O R THUMBERLAND ST FREDERICK ST HILL ST THISTLE ST THISTLE ST ROSE S TREE T T H E M OUND GEORGE IV BRIDGE YORK PLACE Rose Street runs parallel with Princes and George Street connecting Charlotte Square and St Andrew Square. It is predominantly a retail and leisure pitch with some offices and residential accommodation at upper levels. Nearby occupiers include M&S, Jenners, Regus, Sainsburys, Fopp, The Abbotsford, The Dome and BoConcept. ORPHICHEN ST BREAD ST LADY LAWSON ST WEST PORT GRASSMARKET CHAMBERS S St Andrew Square has undergone significant change and investment over the last few years, coupled with the redevelopment of the St James Centre there has been a renewed focus on the eastern end of the city centre. Several new restaurants and bars have opened on the square with more to follow including The Ivy, Wagamama, Gaucho, Dishoom and Vapiano. There are several public transport links close by, including multiple bus routes on Princes Street. Waverley train station is within a 5 minute walk and the St Andrew Square tram halt is also within a 5 minute walk. ROAD GROVE ST OUNTAINBRIDGE SEMPLE ST LACE PONTON ST L AU RISTON PLAC E MEADOWS
George Street Queen Street 3-15 ROSE STREET Malmaison Jenners The Ivy Gaucho Dishoom St Andrew Square Harvey Nichols Princes Street The Registers Multrees Walk Edinburgh St James The Balmoral Hotel
DESCRIPTION The property comprises the basement and loading bay at 3-15 Rose Street. The property forms part of a larger building that comprises ground and four upper floors, currently utilised as offices: FLOOR SQ M (GIA) SQ FT (GIA) Loading Area 61.10 658 Basement Storage 359.67 3,871 Total 420.77 4,529 The property provides loading and storage facilities linked via a tunnel underneath Rose Street to Jenners. This is an integral part to the operation of Jenners, allowing all day access and deliveries as well as refuse collection. Internally there is a lift linking the loading bay to the basement. PLANNING The property is Category B listed and is located within the New Town Conservation Area and the UNESCO World Heritage Site. The property has the potential for conversion to a number of alternative uses including bar, restaurant or nightclub subject to obtaining the relevant planning consents. Interested parties should make their own enquiries with City of Edinburgh Council Planning Department. TENANCY The property is let on FRI terms to House Of Fraser (Stores) Ltd until 4 April 2040. The next rent review is due on 5 April 2020 and is subject to a fixed increase by the lesser of 15.93% or RPI over the preceding 5 year period. The rent is reviewed every 5 years thereafter to the open market rent.
TENANT COVENANT House of Fraser (Stores) Limited as at 28 January 2017 reported turnover of 823.0m, an operating profit of 33.5m and a profit before tax of 22.2m. 2015 2016 2017 Turnover 772.0m 814.7m 823.0m Gross Profit 453.3m 447.1m 476.1m Operating Profit 20.4m 20.0m 33.5m Profit Before Taxation 23.1m 13.1m 22.2m TENURE Absolute ownership (Scottish equivalent of English Freehold). FURTHER INFORMATION For further information or to arrange an inspection please contact: Stephen Kay T 0131 202 6782 M 07971809226 E stephen@cuthbertwhite.com Gavin G Scott T 0131 202 6783 M 07982 716 633 E gavin@cuthbertwhite.com EPC RATING Further information available on request. VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price, however, it is anticipated that the sale will be treated as a Transfer of a Going Concern TOGC. INVESTMENT PROPOSAL We are instructed to seek offers in excess of 800,000 excluding VAT for our client s interest in the property. A purchase at this level would reflect attractive net initial of 6.21% and a capital rate per sqft of 176.64 psf. All figures quoted assume the usual purchaser s costs including LBTT. IMPORTANT NOTICE: CuthbertWhite Ltd for the landlord of this property, whose agents they are, give notice that: 1. The particulars are intended to give a fair and substantially correct overall description for the guidance of intending purchasers and do not constitute part of an offer or contract. Prospective purchasers ought to seek their own professional advice. 2. All descriptions, dimensions, areas, reference to condition and necessary permissions for use and occupation and other details are given in good faith, and are believed to be correct, but any intending landlord 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. 3. No person in the employment of CuthbertWhite Ltd has any authority to make or give any representations or warranty whatever in relation to this property nor enter into any contract on behalf of the landlord. 4. No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. Photographs taken February 2018. Particulars prepared February 2018.