FOR SALE - Sheridan Property

FOR SALE100% PRIME OLD TOWN EDINBURGH INVESTMENT

170 HIGH STREET, ROYAL MILE, EDINBURGH, EH1 1QS

OFFERS IN EXCESS OF

£1,370,000 (5.50% NIY)

EXECUTIVE SUMMARYExceptionally rare long income investment opportunity in the heart of Edinburgh’s Historic Royal Mile;

Located on the 100% prime, high street tourist pitch in Edinburgh’s City Centre;

Let to B&GS Landa trading as Taste of Scotland (D&B credit rating of 2A2) until 30 October 2039;

Unbroken term remaining in excess of 19 years;

Passing rent of £80,000 per annum (£137/sqft Zone A);

Fantastic investment opportunity for a private investor or family office;

We are instructed to seek offers in excess of £1,370,000 (ONE MILLION, THREE HUNDRED AND SEVENTY THOUSAND POUNDS STERLING) exclusive of VAT.

A purchase at this level would show an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 5.96% including LBTT (Land Building and Transactions Tax).

100% PRIME OLD TOWN EDINBURGH INVESTMENT

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G RA N G EC RI C KE T

C LU B

WEST APPROACH ROAD

RO YA L B O TA N I CG A RD EN S

Water of Leith

HaymarketStation

SEMPLE ST

HOLYROOD PALACE

THE SCOTTISH

PARLIAMENT

MEADOWS

BRUNTSFIELD LINKS

ST JAMESCENTRE

BusStation

Waverley

Station

QUEENSFERRY ROAD

DEAN PARK CRESCENT

CRAIGLEITH PARK

RAVELSTON TERRACE

ORCHARD BRAE

LEARMO

NTH

AVE

COM

ELY BANK AVE

LEARMO

NTH

GRO

VE

LEARMONTH GDNS

S LEARMONTH GDNS

ST STEPHEN ST

M

QUEENSFERRY ST

CHARLOTTE

SQUARE

ALBYN PLACE

P C E

HERIOT ROW

GLO

UCESTER LAN

E

OR

Y L AA

COMELY BANK RAEBURN PLACE

CIRCUS LANE

QUEENSFERRY ROAD

L A U

LONDON ROAD

LEIT

H WALK

MCDONALD ROAD

PILRIG STREET

REGENT ROAD

BROUGHTON ST

ELM

ROW

TORPHICAN ST

GRO

VE ST

WEST APPROACH ROAD

NICO

LSON

STREET

UNION STREET

WEST COATES HAYMARKET TERRACE

CHAMBERS STREET

Edinburgh Castle

EAST LONDON STREET

GREAT KING ST

FETTES ROW

EYRE PLACE

BRAN

DO

N ST

HENDERSON ROW

ST VINCEN

T ST HO

WE ST

DU

ND

AS STR

EET

HIGH STREET

MORRISON ST

LOTH

IAN RO

AD

NORTHUMBERLAND STREET

CUMBERLAND STREET

NO

RTH BRID

GE

CASTLE TERR

PLEASANCE

WEST PORT

GRASSMARKET

LADY LAWSON ST

ROSEBURN TERRACE

DALRY

ROAD

CALTON RD

CANONGATE

EAST

ER R

OAD

MELVILLE DRIVE

GLENOGLE ROAD

BREAD ST

ANGLE PARK TERRACE

DUNDEE STREET

BRUNTSFIELD PLACE

ST ANDREW

SQUARE

ST LEON

ARD

S

HAN

OV

ER ST

HILL STTHISTLE ST

THISTLE ST

CA

ST

LE ST ROSE ST

ROSE ST

GEORGE STGEORGE ST

GEORGE STQUEEN STREET

CHESTER STREET

FOUNTAINBRIDGE

MELVILLE STPRINCES STREET

PRINCES STREET

YORK PLACE

ROSE ST

SHANDWICK PLACE

MAITLAND STTH

E MO

UN

D

GEO

RGE IV BRID

GE

HOLYROOD ROAD

R I S T O N P L A C E

BROUGHTON ROAD

RODNEY STREET

EAST CLA

REMONT STREET

INVERLEITH

ROW

WARRISTON ROAD

Spending by tourists in Scotland generates around £12 billion of economic activity for the wider Scottish supply chain and contributes around £6 billion to Scottish GDP, representing about 5% of total Scottish GDP

LOCATIONEdinburgh is Scotland’s Capital City and its principal, financial and administrative centre, housing both the Scottish Parliament and the Scottish Government.

Edinburgh is recognised as a globally important business centre and is the UK’s second largest and Europe’s fourth largest financial centre, by equity assets under management.The capital city of Scotland is located approximately 400 miles north of London and 45 miles east of Glasgow. It is one of the six cities categorised by PMA as a major city and, consequently, benefits from a significant catchment population.

The city has a population of 518,000 people and a regional population of over 1.6 million within the Fife and Scottish Borders catchment area. It is the most prosperous regional city in the UK and its workforce is one of the most highly educated. It was visited by over 3.8million people in 2018 according to Visit Scotland with tourism accounting for 35,000 jobs and £1.5billion to the Scottish Economy in 2018.

Edinburgh is consistently ranked as one of the UK’s most competitive large cities, based on factors such as skills, productivity and qualifications. It also has the second highest gross value added per resident of any of the 133 regions of the UK, with GVA per resident of £39,300 compared to a UK averaged of £26,300 with 75.6% of working age population in employment. These factors have led to Edinburgh being voted the UK’s best city by The Telegraph in 2018.

Edinburgh is recognised as the second most tech-savvy city in the UK with Edinburgh’s rapidly expanding and innovative technology sector being home to international success stories, such as Rockstar North, FanDuel, Cirrus Logic and Skyscanner. Edinburgh was the fastest growing tech hub in 2017/18 and is home to over 100 technology companies.

There are eight universities and further education colleges in Edinburgh, with almost 80,000 students in the city. The University of Edinburgh was ranked 20th in the World University Rankings by The QS in 2019/20. In the past five years, more than 80 spin-out companies have come from The University of Edinburgh, 95% of which are still active.


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15.5 million visitors were attracted to Scotland in 2018, with three and half million people coming from overseas Total spending by tourists reached nearly

£5 billion in 2018, and the value of the sector to wider economy is estimated to be £10.5 billion

CONNECTIVITY

Edinburgh is the most visited tourist and commercial destination in the UK after London, with an exceptional transport and communications network connecting it both internationally and with other cities throughout the UK.

The city centre is served by Edinburgh Waverley and Haymarket rail stations. Edinburgh Waverley, the city’s principal rail station lies adjacent to the High Street. Edinburgh Waverley is Scotland’s second busiest rail station with in excess of 23 million entries/exits in the year to December 2019 (ORR).

Both Edinburgh Waverley and Haymarket rail stations have benefitted from recently multi-million pound refurbishments and upgrading programmes to keep pace with increased passenger demand. Edinburgh Waverley provides direct train services to and from London via the East Coast main line and also provides easy access to and from other key English towns and cities, as well as providing services to all major Scottish cities.

RAIL

Edinburgh benefits from access to the national motorway network. The city is served by the M8 and M9 from the West (Glasgow and Livingston), the M90/A9 from the North (Aberdeen and Inverness) and the A1/A7 from the South/South East (East Lothian, the Borders and Newcastle).

ROAD

TRAMThe city’s new tram system began operating in May 2014 connecting Edinburgh Airport with Edinburgh Park. Haymarket Station and Princes Street, with services terminating at York Place. The Princes Street tram halt is located at the bottom of the mound, approximately 200m from the Lawnmarket/Royal Mile.

In its second full year of operation 7.5 million passenger journeys were recorded on Edinburgh trams, representing an increase of over 22% since 2017. The proposed tram route extension has been given the go ahead to extend to the Leith/Shore are to the north east of the city, further enhancing Edinburgh’s City Centre connectivity.

AIREdinburgh Airport is located only 8 miles from the city centre and is Scotland’s busiest airport and the UK’s sixth largest. Passenger numbers in 2018 increased by 6.5% to 14.3 million representing an average of 39,178 passengers per day.


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SITUATION

The property is located on the pedestrianised section of the High Street which forms part of Edinburgh’s renowned Royal Mile which is an extremely popular tourist destination.

During the annual Edinburgh Festival, the High Street becomes crowded with tourists, entertainers and buskers. Parliament Square is at the heart of Scotland’s legal system, being the home of both the High Court and the Court of Session.

The area benefits from local retailers including Royal Mile Factory Outlet, Subway, House of Cashmere, Caffe Nero, Albanach Public House, Edinburgh Fringe Shop and a wide variety of tourist and Scottish retailers.


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TENANCY INFORMATIONThe subjects are let to B & G S Landa Limited trading as Taste of Scotland on a 25-year FRI lease from 31 October 2014 expiring 30 October 2039 at a passing rent of £80,000 per annum (£137/sqft Zone A), paid quarterly in advance.

There is a provision within the lease for a rent review on every fifth anniversary from the date of entry, with the next review due in 2024. The rent is to be reviewed to the greater of the rent payable immediately prior to the review date and the market rent at the review date.

COVENANT INFORMATIONB&GS Landa Limited t/a Argyll Cashmere. B&GS Landa Limited are luxury Scottish goods retailer and operate a number of retail outlets on the Edinburgh Royal Mile and throughout the city.

B&GS Landa have a Dun & Bradstreet rating of 2A2. For the year ending 31 January 2019 the company reported a sale turnover of £13.13 million, pre-tax profits of £7.4 million and a Tangible Net Worth of £3.578 million.

TENUREThe subject property is held on a heritable title (Scottish equivalent of English Freehold).

VATOur clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of Going Concern (TOGC).

LEGAL COSTSEach party will be responsible for their own legal costs incurred in connection with the transaction.

EPCEPC Available on request.

PROPOSALWe are instructed to seek offers in excess of £1,370,000 (ONE MILLION, THREE HUNDRED AND SEVENTY THOUSAND POUNDS STERLING) exclusive of VAT.

A purchase at this level would show an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 5.96% including LBTT (Land Building and Transactions Tax).

DESCRIPTION

The subject property comprises a ground and basement, mid-terraced retail unit forming part of a four storey and attic, traditional tenement building held under a pitched and slated roof.

ACCOMMODATIONWe have measured the subject premises in accordance with the RICS Code of Measuring Practice (Sixth Edition) and would estimate the following approximate net internal areas:

FLOOR SIZE (SQ M) SIZE (SQ FT)

Ground 55.28 595

Basement 35.30 380

TOTAL 90.58 975

ITZA 54.25 584


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VIEWING & FURTHER INFORMATIONPlease contact the sole selling agent:

37 ONE,37 George StreetEdinburghEH2 2HN

Tel. 0131 300 0296

Stewart: 07740 940898email: [email protected]

Cathal: 07808 627224email: [email protected]

Graeme: 07523 512804email: [email protected]

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 have

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: September 2020

Sheridan Property Consultants

Documents

FOR SALE - Sheridan Property