FOR SALE SALE & LEASEBACK CONVENIENCE STORE INVESTMENT 1-7 STATION ROAD KIRKLISTON WEST LOTHIAN EH29 9BE Sheridan Property Consultants
LOVED AND EXPERIENCED BY CUSTOMERS SINCE EARLY 1859 INVESTMENT SUMMARY Rare opportunity to acquire a prominent corner, convenience store investment; It is the only convenience store, food offering in the town of Kirkliston; The subjects are let entirely to Scottish Midland Co-operative Society Limited Exceptional fixed rental uplift investment opportunity; Situated in the heart of Kirkliston, one of the most rapidly expanding towns in West Lothian; Let to Scottish Midland Co-operative Society Ltd (5A1 Covenant); New 15 year Full Repairing & Insuring Lease with a 10 year tenant only break; Initial passing rent of 56,820 per annum ( 12.00/sq ft); 5 yearly rent review pattern based on CPI, capped and collared at 3%-1.5%; 1859 We are instructed to seek offers in excess of 860,000 (EIGHT HUNDRED AND SIXTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 6.25%, assuming standard purchaser s costs of 5.46% Scottish Midland Co-operative Society Ltd originated from an co-operative society established in 1859 and now has operations across Scotland, Northern Ireland and the North of England.
DESCRIPTION The subject property is located in a prominent position at the main crossroads in the centre of Kirkliston. The unit comprises a large corner open-plan convenience store with excellent return frontage held within a modern, three storey residential development. Internally, the space has been sub-divided to allow for a large retail sales area towards the front of the store with a bakery, cold stores, office, staff facilities, loading bay doors and WC facilities to the rear. The subjects are fitted out in the corporate style of Scotmid Co-operative. SITUATION The subjects are situated on the north-east side of Station Road at the crossroad intersection with Main Street and Queensferry Road, at the principal entrance to Kirkliston from to the east and Winchburgh to the West. The surrounding occupiers are predominantly made up of residential dwellings with the local primary school within a ½ mile walking distance. 2 The subjects are located in a prominent position at the main crossroads in the centre of the town of Kirkliston 1-7 STATION ROAD, KIRKLISTON EH29 9BE
LOCATION Kirkliston is a commuter town in West Lothian, with a resident population of approximately 5,000 persons, which continues to grow due to the town s expansion programme. The town is located approximately 7 miles west of City Centre and lies 1/2 mile to the south of the M90, the main arterial route linking the north of Scotland, Perthshire and Fife with the capital as well as the Queensferry Crossing. The Queensferry Crossing is the largest infrastructure project in Scotland for a generation at an approximate cost of 1.35 billion. The bridge acts as the link for the M90 motorway across the Firth of Forth with the construction of 2.5 miles of new connecting roads including new and upgraded junctions at Ferrytoll in Fife, South Queensferry and Junction 1A on the M9 motorway. International Airport is the sixth busiest international airport in the UK and is located 3.5 miles to the south-east of Kirkliston. With over 40 airlines operating from, the terminal offers a choice of 130 destinations across the globe and is the busiest airport in Scotland, handling more than 14.3 million passengers in 2018. On a more local level, Kirkliston is excellently served by public transport with First Bus Group s 38 service to Stirling and from June 2014, Lothian Buses introduced the 63 bus which runs from Heriot Watt University via the Gyle, Newbridge, Kirkliston and onwards to Queensferry. Kirkliston is a rapidly expanding town within West Lothian with extensive residential development underway witihin with the immediate surrounding area. There are currently two large residential developments towards the north and south of the town for approximately 180 new homes which are either already built or within the final phase of development by Walker Group and Cala Homes. STIRLING M90 DUNFERMLINE 3 M80 FALKIRK M9 M90 A90 M80 CUMBERNAULD BROXBURN EDINBURGH A1 M8 GLASGOW M73 M8 M8 A71 LIVINGSTON A702 A703 A7 M77 M74 LIVINGSTON 10 MILES: 16 MINUTES TRAVEL DISTANCES M9 MOTORWAY 4.8 MILES: 7 MINUTES DUNFERMLINE 11 MILES: 19 MINUTES EH29 9BE GLASGOW 39 MILES: 46 MINUTES M8 MOTORWAY 8 MILES: 12 MINUTES KIRKLISTON EDINBURGH 10 MILES: 28 MINUTES
ACCOMMODATION We have measured the subjects in accordance with the RICS Code of Measuring Practice (Sixth Edition) and calculate the approximate gross internal areas as follows: AREA/FLOOR SIZE (SQM) SIZE (SQFT) TOTAL 439.85 4,735 TENANCY The subjects are let entirely to Scottish Midland Co-operative Society Limited on a new 15 year lease incorporating a tenant only break option on the 10th anniversary, subject to six months written notice. The lease will be held on Full Repairing and Insuring terms at a passing rent of 56,820 per annum, paid quarterly in advance. This equates to an overall rate of 12.00 per sqft. The rent is to be reviewed on a 5 yearly basis in line with CPI, collared and capped at 1.5% and 3% per annum. The tenant will have an option to extend on the same terms as the original lease, subject to 12 months notice prior to the expiry date. In terms of recent investment comparable evidence we are aware of the following transactions: COMPANY INFORMATION The Scottish Midland Co-operative Society Limited is Scotland s largest independent co-operative and has been at the heart of Scottish communities since 1859. The group s retail business areas comprise convenience foodstores (187 branches) and a value health and beauty retailer t/a Semichem (90 branches). In addition the group has a funeral undertaking business (16 branches) and a substantial investment property portfolio. The food stores are the largest part in terms of both turnover and profitability and together with the investment property portfolio comprise the financial backbone of the group. The company employ around 5,000 people in Scotland, Northern Ireland and the North of England. STATEMENT DATE TURNOVER NET PROFIT SHARE HOLDER FUNDS 28-01-2018 373,712,000 5,547,000 99,556,000 PROPERTY Sainsburys, Causewayside, Co-op, Crief Co-op, Peterhead Sainsburys, Guild St, Aberdeen Iceland, Ferniehill, Co-op, Newburgh Co-op, Cardross Tesco, Hollyrood Road, TERM REMAINING 10 years 17 years 11 years 10 years/5 yr break 10 years 8 years (3 years to TBO) RENT REVIEW PRICE 57,500 ( 14.65 psf) 254,518 ( 15.90 psf) 40,000 ( 15.00psf) 50,000 241,500 ( 12.95 psf) 60,000 ( 14.62 psf) 45,500 ( 14.67 psf) 48,792 ( 11.62 psf) NET INITIAL YIELD DATE 980,000 6.24% Sep-18 Annual RPI 2%-4% 4,580,000 5.25% Jun-18 586,000 6.59% May-18 875,000 5.70% Mar-18 OMV review 3,740,000 6.05% Mar-18 5 yrly CPI linked Review capped at 4% 925,000 6.15% Jan-18 665,000 6.53% Dec-17 820,000 5.66% Jun-17 4 28-01-2017 376,169,000 6,252,000 91,531,000 30-01-2016 370,620,000 4,301,000 91,473,000 Co-op, Gretna 52,500 ( 15 psf) 5 yrly CPI linked 980,000 6.52% Jun-17 Iceland, Whitburn 13.5 years 38,250 ( 8.50 psf) 2.5% compounded annually 645,000 5.80% May-17 TENURE The subject property is held on a heritable title (Scottish equivalent to English freehold). Co-op, Laurencekirk, Aberdeen Co-op, Lenzie Sainsburys Local, Pollokshields, Glasgow 12 years 11.5 years 67,500 ( 14.81 psf) 45,000 ( 14.58 psf) 69,000 ( 15.34 psf) 5 yrly CPI linked capped at 3.5% 1,017,000 6.30% May-17 700,000 6.12% Apr-17 1,138,000 5.75% Apr-16 1-7 STATION ROAD, KIRKLISTON EH29 9BE
EPC The Energy Performance Rating of the property can be provided upon request. PROPOSAL We are instructed to seek offers in excess of 860,000 (EIGHT HUNDRED AND SIXTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 6.25%, assuming standard purchaser s costs of 5.46%. VAT Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price. LEGAL COSTS Each party will be responsible for their own legal costs incurred in connection with the transaction. 6 1-7 STATION ROAD, KIRKLISTON EH29 9BE
VIEWING & FURTHER INFORMATION Please contact the sole selling agents: 37 One 37 George Street EH2 2HN Tel 0131 300 0296 Sheridan Property Consultants Stewart Sheridan: 07740 940898 Email: stewart@sheridanproperty.co.uk Cathal Keane: 07808 627224 Email: cathal@sheridanproperty.co.uk Graeme Millar: 07523 512804 Email: graeme@sheridanproperty.co.uk Notice: Sheridan Property Consultants 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 intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to condition and necessary permission 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 and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate. Date of Publication: March 2019