EAST KILBRIDE RETAIL PARK - LoopNet...UK average. Within a 10 minute drive time catchment of the...

EAST KILBRIDE RETAIL PARK

RETA I L WAREHOUSE INVESTMENT I N A PR IME LOCAT ION MAVOR AVENUE, EAST KILBRIDE G74 4QX

I NVESTMENT SUMMARY

EAST KILBRIDE IS SCOTLAND’S MOST SUCCESSFUL NEW TOWN AND FORMS PART OF THE GLASGOW CONURBATION.

PART OF A DOMINANT RETAIL WAREHOUSING CLUSTER SERVING A PRIMARY RETAIL CATCHMENT OF 144,000 PEOPLE.

MODERN RETAIL PARK COMPRISING THREE UNITS, EXTENDING TO A TOTAL OF 34,898 SQ FT (GIA).

RETAILER LINE-UP OF HOME STORE + MORE, CARPETRIGHT AND BENSONS FOR BEDS.

DEMAND FOR THE PARK HAS BEEN DEMONSTRATED BY THE RECENT ARRIVAL OF HOME STORE + MORE AND IN THE WIDER PARK BY THE ARRIVAL OF PETS AT HOME, THE RANGE, HALFORDS HOME BARGAINS AND ALDI.

THE PROPERTY PROVIDES AN ANNUAL RENTAL OF ￡849,965 PER ANNUM.

ATTRACTIVE WAULT TO EXPIRY OF 7.31 YEARS AND TO BREAK OF 6.54 YEARS.

WE ARE INSTRUCTED TO SEEK OFFERS OVER ￡8,000,000 FOR OUR CLIENT’S HERITABLE INTEREST IN THE PROPERTY.

A PURCHASE AT THIS LEVEL REFLECTS A NET INITIAL YIELD OF 9.96%, ALLOWING FOR PURCHASER’S COSTS OF 6.66%.

RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATIONEAST KILBRIDE RETAIL PARK

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Prime retail investment sale with an attractive tenant profile

10 miles south east of Glasgow city

centre

East Kilbride has a population of over

75,000

LOCAT ION East Kilbride is part of the Glasgow conurbation, approximately 10 miles south east of Glasgow city centre. It is the largest town within the South Lanarkshire council area and has a population of over 75,000.

COMMUNICAT IONS East Kilbride has excellent accessibility to the M77, M74 and M8 which form the heart of the country’s motorway network. The A725/A726, on which the subject property is situated is the principal east/west route through East Kilbride and forms the Glasgow Southern Orbital which links the town with the M77 to the west and the M74 to the east. As part of the Glasgow City Deal, there will be improvements made to transport infrastructure, including upgrades to the A726, the M77 and the M8. This will make East Kilbride an even more attractive location to residents and it will also make East Kilbride Retail Park even more accessible.

GLASGOWA814

A82A81

A879A803

A8

A89

A89

A724

A749

A749A730

B766

A727 A724

B7071

A727

A736

A726

A723

EastKilbride

HAMILTON

RUTHERGLEN

Giffnock

Shawlands

Dennistoun

Baillieston

Carmunock Blantyre

Uddingston Bellshil

Coatbridge

Eaglesham

EAST KILBRIDERETAIL PARK

M74M74

M74

M77

M80

M73

M8

M8

M8 M8

A77

A726

A726

A725

A725

A725

A8A8

A74

131

201

22

3

1A

2

34

5

5

M77

M8

8/19

Excellent accessibility to the M77, M74 and M8 which form the heart of the country’s motorway network.

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EAST KILBRIDE RETAIL PARKEAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

4

EAST KILBRIDE RETAIL PARK

PETROL

EAST KILBRIDE RETAIL PARK

RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

A749

KINGSGATE RETAIL PARK

S I TUAT ION East Kilbride Retail Park is situated on the north side of the town, on the junction with the main arterial routes to Glasgow (A749) and to Hamilton, Motherwell and Bothwell (A725). East Kilbride Retail Park lies beside Kingsgate Retail Park, which provides over 268,821 sq ft of retail warehousing, anchored by Sainsbury’s with other tenants including TK Maxx, Boots, Nike, M&S Simply Food and Next.

Adjacent to the subjects is a 106,000 sq ft B&Q . Opposite the parade is another retail parade let to The Range, Halfords, Pets at Home and Currys/PC World. There is also a neighbouring new development let to Aldi and Home Bargains. The retail warehouse provision on the south side of Glasgow is limited, with the 166,350 sq ft Auldhouse Retail Park being the main park, which is 7 miles away and a 23 minute drivetime. Immediately to the south of East Kilbride Retail Park is a new housing development on the site of the old Rolls Royce factory, creating 477 new homes.

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EAST KILBRIDE RETAIL PARK

EAST KILBRIDE RETAIL PARK

RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

A749

KINGSGATE RETAIL PARK

A749

Mavor Avenue

Stewartfield Way

EAST KILBRIDE SHOPPING CENTRE

BARRATT HOMES NEW DEVELOPMENT

A725

A749

Excellent road links

DEMOGRAPH ICS The East Kilbride catchment population includes a higher than average proportion (17%) of older working age adults aged 45-64 (Source: 2018 CACI), due to it being an attractive location for families. This flows through to there being a stable number of 15-24 year olds which is in line with the UK average. Within a 10 minute drive time catchment of the retail park, the annual expenditure estimate is around ￡589,355,364 (Source: 2018 CACI). Within a 10-20 minute drive time catchment of the retail park, the annual expenditure estimate is around ￡2,391,530,180 (Source: 2018 CACI). The retail catchment includes the wealthy suburban areas of Glasgow, which include Giffnock, Newton Mearns and Whitecraigs.

Proposed Housing Development between 2017-2022 In South Lanarkshire between 2017-2022 there are plans for a further 3,800 new private sector homes and 1,100 new affordable homes. Part of this housing need is satisfied by the redevelopment of the adjacent former Rolls Royce site, which will accommodate 477 homes. Now that key infrastructure funding has been agreed as part of the ￡1.13 billion Glasgow City Region City Deal, more than 2,500 new homes are set to be built in East Kilbride post 2022.

East Kilbride has a primary retail market population of 144,000 (Source: PROMIS).

Plans for a further 3,800 new private sector

homes and 1,100 new affordable homes

GLASGOWGLASGOW

EDINBURGHEDINBURGH

AyrAyr

GreenockGreenock

PaisleyPaisley

East KilbrideEast Kilbride

HamiltonHamilton

FalkirkFalkirk

The retail catchment includes the wealthy

suburban areas of Glasgow

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EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

EAST KILBRIDE - Drive time catchment

0-10 miles

10-20 miles

20-30 miles

30-40 miles

40-50 miles

DESCR IPT ION The subject property comprises a parade of three retail warehouse units of steel frame construction, with the walls a combination of blockwork and composition cladding panels. The units were originally developed in 2005 alongside the 106,000 sq ft B&Q. Units 1 and 3 have tenant installed mezzanines. The units are accessed from Mavor Avenue. The terrace has 171 allocated car parking spaces, providing a ratio of 1:204 with the adjoining B&Q having a further 422 spaces. The units are serviced via Mavor Avenue onto a fully enclosed yard to the rear of the terrace.

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171 car parking spaces

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

Modern retail park comprising three units, extending to a total of 34,898 sq ft (GIA).

TENANCY SCHEDULE

The current rent is ￡849,965 per annum.

Attractive WAULT to expiry of 7.31 years and to break of 6.54 years.

UNIT TENANT AREA (SQ FT) LEASE START LEASE EXPIRY BREAK RENT REVIEW RENT (PA) RENT (PSF) COMMENTS

Unit 1 Ogalas UK Limited 20,443 13/09/2005 12/09/2025 - 13/09/2020 ￡450,000 ￡22.01 57 weeks rent free from the date of the assignation Guarantor – Ogalas Unlimited Company (10/04/2018) in the form of a discounted rent for the first t/a Home Store + More 4 years. Vendor to top-up. Tenant option to extend lease for 7 years on expiry, rent payable to be on open market basis subject to a minimum rent of ￡307,500 per annum. An additional installed mezzanine of 5,717 sq ft.

Unit 2 Carpetright Plc 10,227 13/09/2005 12/09/2030 - 13/09/2020 ￡265,000 ￡25.91

Unit 3 Steinhoff UK Group Properties Ltd 4,228 10/07/2006 09/07/2026 10/07/2021 10/07/2021 ￡130,715 ￡30.92 A full mezzanine floor has been added by the tenant t/a Bensons for Beds of 3,964 sq ft.

Display Phoenix Outdoor Advertising Ltd - 31/01/2012 30/01/2021 - - ￡4,250 - Continuing by tacit relocation. Board

34,898 ￡849,965

Modern retail park comprising three units

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EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

COVENANT STRENGTH

Demand for the Park has been demonstrated by the recent arrival of Home Store + More and by the arrival of Aldi, Home Bargains, Pets at Home, The Range and Halfords within wider East Kilbride Retail Park.

COMPANY NAME COMPANY NO. YEAR END TURNOVER PRE-TAX PROFIT NET WORTH

Ogalas UK Limited 10777605 31st Jan 2019 ￡3,032,413 (￡1,259,122) (￡1,320,176)

Ogalas Unlimited Company 382 168 31st Jan 2016 €96,202,710 €12,011,869 €25,072,864

31st Jan 2015 €78,728,332 €8,821,976 €28,589,660

31st Jan 2014 €64,461,032 €5,125,602 €20,957,848

Carpetright Plc 02294875 27th Apr 2019 ￡386,400,000 (￡24,800,000) ￡20,100,000

28th Apr 2018 ￡443,800,000 (￡70,500,000) (￡7,700,000)

29th Apr 2017 ￡457,600,000 ￡900,000 ￡20,700,000

Steinhoff UK Group Properties Limited 01024575 30th Sep 2017 ￡76,966,000 ￡2,120,000 ￡33,632,000

24th Sep 2016 ￡96,124,000 ￡8,208,000 ￡28,005,000

27th Jun 2015 ￡80,832,000 ￡6,332,000 ￡22,123,000

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EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

TENURE The property is held on a heritable title (Scottish equivalent of English Freehold).

AML A successful bidder will be required to provide AML information in accordance with HMRC regulations when Heads of Terms are agreed.

VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated the sale will be treated as a Transfer of a Going Concern (TOGC).

EPC EPCs are available on request.

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EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION

EAST KILBRIDE

RETAIL PARK

STEWART

FIELD AVENUE

El SubSta

PLANN ING

The site was originally given planning permission in September 2004 for the development of two non-food retail warehouse units with further permission granted for a third unit in December 2005. The original consent limited the use of the units to the sale of D.I.Y goods, furniture, carpets, electrical goods, household furnishing and motor accessories. In 2012 the landlord obtained consent to broaden the permitted uses for the occupancy of Toys R Us of Unit 1 to include the sale of toys, games, sports equipment, cycles and baby products. In 2015, Toys R Us successfully applied to further widen the permitted uses of their unit to include the retail sale of fashion accessories from not more than 25 sq m of the unit.

SERV ICE CHARGE

The current service charge budget to the year end 30th April 2020 is ￡24,500. This reflects a cost to the tenants of ￡0.70 per sq ft based on the areas within the tenancy schedule on Page 8.

MISREPRESENTATION ACT. Cushman and Wakefield LLP on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: (i) These particulars are produced in good faith, but are a general guide only and do not constitute any part of a 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 to make or give representation or warranty whatever in relation to this property. (iii) the property is offered subject to contract and unless otherwise stated all rents and outgoings are stated exclusive of VAT. (iv) Floor areas, measurements or distances given are approximate. (v) Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. (vi) Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required.

February 2020. Alamo Design 01924 471114.

PROPOSAL We are instructed to seek offers in excess of ￡8,000,000 (Eight Million Pounds Sterling) exclusive of VAT for the benefit of our client’s interest. A purchase at this level would reflect a net initial yield of 9.96%, after allowing for purchaser’s costs of 6.66% based on Scotland’s Land and Buildings Transactions Tax (LBTT).

FURTHER INFORMAT ION For further information or to arrange an inspection, please contact:

STUART SPALDING dd: +44 (0) 141 304 3243 m: +44 (0) 7717 178 284 e: stuart.spalding@cushwake.com

KYLE STUART dd: +44 (0) 141 304 3205 m: +44 (0) 7827 622 303 e: kyle.stuart@cushwake.com

STEPHEN BIBBY dd: +44 (0) 131 222 4523 m: +44 (0) 7799 361 290 e: stephen.bibby@cushwake.com