159 Sauchiehall Street, Glasgow Prime Retail Investment
159 Sauchiehall Street, Glasgow Investment Summary Glasgow is Scotland s largest city and is widely acknowledged as being the UK s best retail centre outside London. Sauchiehall Street is one of the strongest retailing streets in the city. The property sits within a pitch containing the big footfall generators of TK Maxx, Primark, Marks & Spencer and Boots. The property provides a rare opportunity to purchase a prominent well laid out corner unit, with full height return frontage glazing. The property is let to TZ Store Limited, t/a Tiger on a FRI lease for period of 10 years until 15th November 2022, with a tenant s break in 2017. The current rent is 137,500 per annum. The rent has been re-based, so is primed for rental growth. Offers of 1,450,000 (One Million, Four Hundred & Fifty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English freehold) in the property. This represents an attractive net initial yield of 9.00% after allowing for purchaser s costs of 5.63% based on Scotland s Land and Buildings Transaction Tax (LBTT).
E Retailing in Glasgow Glasgow is the second best retailing destination outside of London and is ranked in the top 20 in the super league of major European shopping destinations by commercial expenditure. The city has a catchment of 1,841,000 people, ranking the city first out of the top 200 retailing centres of this measure. Within a 90 minute drive time from Glasgow, the comparison goods spend is 7.86 billion, of which 2 billion is spent in the city centre. The city is ranked as having the highest catchment spend available out of the top UK retailing centres. This strong catchment spend has generated a very attractive and prosperous city centre. The retailing core is based around Sauchiehall Street, Buchanan Street and Argyle Street. This is supported by the shopping centres of Buchanan Galleries, St Enoch and Princes Square. Buchanan Street forms the prime retailing street and leads onto Sauchiehall Street, which has benefited from Land Securities Buchanan Quarter development close to the junction with Sauchiehall Street. Glasgow Edinburgh COWCADDENS ROAD Buchanan Bus Station A B 159 Sauchiehall Street Buchanan Galleries Shopping Centre Newcastle Manchester Birmingham London Charing Cross Station M8 J19 Anderston Station WEST GEORGE STREET SAUCHIEHALL STREET A ARGYLE STREET HOPE STREET RENFIELD STREET Central Station U BUCHANAN STREET U St Enoch Centre B Queen Street Station C QUEEN STREET D George Square ARGYLE STREET C D GEORGE STREET Princes Square Shopping Centre St Enoch Shopping Centre Glasgow s Golden Z RIVER CLYDE RIVER CLYDE
159 Sauchiehall Street, Glasgow Situation Sauchiehall Street is one the strongest retailing pitches within Glasgow. The property sits within a pitch containing the big footfall generators of TK Maxx, Primark, Marks & Spencer and Boots. Due to the high footfall levels on the street and the close proximity to the office core, a number of supermarket metro stores have come to the western end of the pedestrianised section of the street to serve this spend, with Sainsbury s, Tesco and Co-op in occupation. Rents on the street peaked at Zone A rates of over 150 per sq ft and have subsequently fallen back to around 100 per sq ft Zone A, so the street offers good potential for rental growth going forward.
Description Tenancy Accomodation The property provides a rare opportunity to purchase a prominent well laid out corner unit. The unit has full height return frontage glazing, which makes it attractive to occupiers. Internally, the ground floor is used mainly for sales, with storage to the rear, with the mezzanine being used for ancillary purposes. The property is let to TZ Store Limited, t/a Tiger, on a Full Repairing and Insuring lease for a period of 10 years until 15th November 2022. The current rent is 137,500 per annum ( 99.64 per sq ft Zone A) and the next rent review is on 16th November 2017. There is a break option on 16th November 2017. There is a guarantee provided by Nordea Bank Finland Plc, with further details available on request. The unit has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and the approximate areas are as follows: Floor sq m sq ft Ground 186.08 2,005 Mezzanine 41.62 448 Total 227.70 2,453 ITZA 128.21 1,380 Floor Plans Ground Floor Storage Ground Floor Office Mezzanine Storage Kitchen Plant Room Mezzanine Floor
159 Sauchiehall Street, Glasgow Tenant Covenant Tiger started in 1995 in stylish Copenhagen, since then they have developed into a recognised high street brand with over 400 stores across 21 European countries. In June 2005, the first UK store opened, with Tiger now employing over 230 staff across the UK. The company s mission is to provide customers with stylish products, in a fun and pleasant environment, at astonishingly good value. Tiger is a variety store with a difference. They specialise in high quality, exceptional value items that are practical, fun, decorative and encourage creativity. From homeware, kitchenware, stationery, toys to hobby items. More than six new outlets opened in 2013/14 including a flagship store in London s West End at Tottenham Court Road and another central London store. The outlook for 2015 is equally exciting with many more new stores planned. TZ Stores Ltd is the Scottish franchise of the business, with further stores located in Edinburgh, Dunfermline and Livingston.
Tenure VAT Absolute Ownership (Scottish equivalent of English Freehold). EPC The property has been elected for VAT and therefore VAT will be elected on the purchase price. However it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). The energy performance rating for the property is G and CO2 emissions are 212. A full Energy Performance Certificate (EPC) can be provided on request.
Proposal Offers of 1,450,000 (One Million, Four Hundred & Fifty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English freehold) in the property. This represents an attractive net initial yield of 9.00% after allowing for purchaser s costs of 5.63% based on Scotland s Land and Buildings Transaction Tax (LBTT). For further information please contact: Sarah Stewart T: +44 (0)131 226 8736 E: sarah.stewart@cushwake.com Stephen Bibby T: +44 (0)131 226 8738 E: stephen.bibby@cushwake.com Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG MISREPRESENTATION ACT Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: 1/ The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2/ No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3/ The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4/ 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. 5/ 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 if required. September 2015