88-104 HIGH STREET AYR FOR SALE EXCELLENT RETAIL INVESTMENT OPPORTUNITY 66.75 YEARS TERM CERTAIN TO ESTABLISHED HIGH STREET RETAILER
INVESTMENT SUMMARY An excellent opportunity to acquire an established retail investment within the retail, commercial and administrative centre for Ayrshire. Category B listed building benefitting from 100% empty rates relief. Let in its entirety to BHS Ltd at an annual rent of 530,000. Long secure-income benefitting from an unexpired term of 66.75 years. Part sub-lease to Poundland produces additional income of 160,000 per annum. Total net income of 689,995 per annum. Offers sought in excess of 6.00m reflecting an attractive NIY of 10.83% assuming standard purchaser s costs and the deduction of LBTT.
ALLOWAY PLACE LOCATION SITUATION The coastal town of Ayr is located on the west coast of Scotland, approximately 35 miles south west of Glasgow and 75 miles west of Edinburgh. Not only is Ayr the retail and commercial centre for the South Ayrshire area, the town also has a strong history as a market and tourist destination with an estimated 1 million tourist visitors attracted to the town each year. Ayr provides easy access to Glasgow by road via the A77/M77 and also benefits from a frequent rail service to Glasgow Central Station. Prestwick International Airport is also within close proximity being 5 miles north of the town centre. The nearby towns of Troon and Stranraer also offer regular ferry services to Northern Ireland. The subject property is located within the town s prime retailing street, High Street. Occupiers within the vicinity include M&S, Superdrug, Boots, Tesco and Wilko s. Improving the strength of this location is Ayr s prime retail centre, Ayr Central, which is located a short distance to the south of the property and is anchored by Debenhams as well as being home to national retailers H&M and Primark. HIGH STREET STRATHAYR PLACE STIRLING A719 JOHN STREET GLASGOW EDINBURGH FORT STREET NEWMARKET STREET HIGH STREET RIVER AYR RAILWAY LINE GAIETY THEATRE FORT STREET MILL WYND TROON BARNS STREET MILL STREET AYR PRESTWICK DALBLAIR ROAD ALLOWAY STREET KYLE STREET AYR CENTRAL SHOPPING CENTRE STATION RD
AYR RETAILING PROVISION Ayr has a population of 47,000 and a primary catchment area of 168,000 people. Town centre retail floor space in Ayr is estimated to be 1.65 million sq ft with Ayr Central to the south comprising c.180,000 sq ft. The main shopping centre within the town prior to Ayr Central was the Kyle Centre, a covered mall fronting onto High Street which was bought out of receivership in 2014. Ambitious plans have since been unveiled for a substantial overhaul of the centre which will now feature a 7 screen multiplex cinema and multi-leisure provision. Planning permission has been granted for the 15m development which will radically transform the feel and footfall of the High Street. Ayr High Street also benefits from on-going regeneration projects which are managed and governed by Ayr Renaissance. Ayr Renaissance is a limited liability partnership subsidiary of South Ayrshire Council created to deliver the regeneration strategy for Ayr. It will refurbish vacant retail premises to bring them back into use and improve the historic core of the town centre. It will also redevelop vacant retail premises in conjunction with the private sector to provide residential and commercial accommodation. Ayr Railway Station Ayr High Street The proposed Kyle Centre Refurbishment Ayr Central Shopping Centre
DESCRIPTION The property consists of two adjoining retail units each arranged over 4 stories within a Category B Listed building. BHS comprises a large department store-style unit with trading areas arranged over predominantly ground and first floors with the second and third floors providing ancillary accommodation. Escalator access is also available to the first floor substantially improving the trading potential. Unit 2 again utilises the ground and first floors for trading areas with the 2nd and 3rd providing ancillary storage accommodation. A covered storage yard is located to the east of the property. FLOOR PLAN HIGH STREET Indicative ground floor plan of BHS
SITUATION ACCOMMODATION We understand that the property provides the following Net Internal Area (NIA): FLOOR SQ M SQ FT ITZA BHS Ground 2,378 25,595 First 2,460 26,475 Second 205 2,206 Third 207 2,224 Total 5,250 56,500 N/A POUNDLAND Ground 329 3,541 First 276 2,974 Second 107 1,147 Attic - - Total 712 7,662 1,876 sq ft
TENANCY The property is let in its entirety on a full repairing and insuring lease to BHS Ltd until 29 September 2082. The annual rent is 530,000 per annum and is reviewed on a 5 yearly basis to the open market. There is also an option to extend for either party. In addition to this, there are a number of sub-lettings within the property which allow the landlord to maximise the income within the property which have been outlined in the tenancy schedule below. TENANT DESCRIPTION FLOOR AREA LEASE START LEASE END CURRENT RENT COMMENTS BHS Ltd Unit 1 56,500 21/11/1983 29/09/2082 530,000 Either party has option to extend for a further 26 years. SUB-LETTING AVP Co 25 Ltd (Landlord) Unit 2 7,622 21/11/1983 29/09/2082-5.00 Landlord has taken back part of the demise (unit 2) from BHS Ltd on a sub-lease at a nominal rent which will be assigned to prospective purchaser upon sale. This has since been sub-let to Poundland Ltd highlighted below. Poundland Ltd* Unit 2 7,622 10/04/2006 09/04/2021 160,000 South Ayrshire Council South of Scotland Electricity Board First Floor Toilets - 21/11/1983 29/09/2082 1.00 Either party has option to extend the lease by 26 years. Sub-station - 21/11/1983 29/09/2082 0.05 Total 689,996 COVENANT INFORMATION BHS LTD BHS are a traditional high street fashion retailer, who in recent years have expanded into selling furniture, electronics, entertainment and convenience groceries. BHS remains one of the most prominent brands on the British high street with a network of 171 stores throughout the UK and 88 stores internationally, employing in the region of 12,000 people. The company was bought by Retail Acquisitions in March 2015 and has benefitted from a cash injection of 65m which will be used to modernise all of its stores over the next 3 years. This will include rebranding back to the traditional British Home Stores, installing food departments in most of its stores and refurbishing its cafés/restaurants, all highlighting the new owner s commitment to the brand. POUNDLAND LIMITED Poundland is the largest single priced discount retailer in Europe with in excess of 450 stores. Founded in 1990, Poundland has grown in size and stature, particularly benefitting from the economic downturn and is now listed on the Stock Exchange and is a constituent of the FTSE 250 index.
TENURE Heritable, Scottish equivalent of Freehold. EPC RATING The property has an EPC rating of E+. VAT The property has been elected for VAT, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC). CORPORATE ACQUISITION The asset is held in an Isle of Man Special Purpose Vehicle and the vendor is willing to sell the shares of this Company. Further information can be provided on request.
PROPOSAL We are instructed to seek offers in excess of 6.00 million (Six Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 10.83% allowing for purchaser s costs and the deduction of LBTT. FURTHER INFORMATION For further information or to arrange a viewing, please contact the vendor s sole selling agent: Patrick Ford patrick.ford@knightfrank.com 0141 566 0880 Douglas Binnie douglas.binnie@knightfrank.com 0141 566 0885 120 Bothwell Street Glasgow, G2 7JS MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members names. January 2016.