WITH RESIDENTIAL UPPER FLOORS - Sheridan Property€¦ · The basement, ground, first and part second floors are let to Waitrose Limited on a FRI Lease from 27 September 2009 expiring

3 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W

F O R S A L E

O F F E R S O V E R £ 1 1 , 1 5 0 , 0 0 0 ( 5 % N E T I N I T I A L Y I E L D & 5 . 6 3 % R E V E R S I O N A RY Y I E L D )

W I T H R E S I D E N T I A L U P P E R F L O O R S

3 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W 2

100% Prime location in Glasgow’s affluent and vibrant West End

Let to Waitrose Limited

Ownership of 24 flats above the foodstore occupied on a long Ground Lease (75 years unexpired)

Flats will revert to Landlords in 75 years

Superb long term opportunity for private owner, family trust or charity

Dun & Bradstreet covenant of 5A1

Passing rent of £594,700 per annum (only £17.75 / sq ft)

Rental value of £670,000 (£20 / sq ft)

Lease expiry in September 2029 (over 10 years unexpired)

Our clients are seeking offers in excess of £11,150,000 (ELEVEN MILLION ONE HUNDRED AND FIFTY THOUSAND POUNDS STERLING) exclusive of VAT which reflects a net initial yield of 5%, reversionary yield of 5.63% and equivalent yield of 5.63%

INVESTMENTSUMMARY


The greater Glasgow conurbation according to the 2011 Census, totalled around 2.3 million, accounting for more than 40% of Scotland’s entire population. Over 70% of the population is of working age demonstrating a relatively young demographic compared to the rest of the UK.

LOCATION

Glasgow is the powerhouse of the Scottish economy contributing approximately £19.62 billion, GVA annually, more than a third of the UK average. 19,000 companies make their home in Glasgow, generating an annual turnover of £38 billion and it is currently within the top 20 of Europe’s best performing financial centres and is ranked 61st worldwide (Global Financial Services Index 2016).

Glasgow’s employment rate is at its highest ever rate, showing 67.3%. The city is home to an impressive list of blue chip companies and major global organisations including Barclays Wealth, Santander, HSBC, Morgan Stanley, Direct Line, The Student Loans Company, Ministry of Defence, O2, Atos, Tesco Bank, Dell and J.P Morgan.

Glasgow is home to 5 Higher Education institutions including the University of Glasgow, The University of Strathclyde and Glasgow Caledonian University as well as the world-renowned Glasgow School of Art and The Royal Conservatoire of Scotland. The student population is the highest in Scotland with more than 130,000 students from 135 different countries across the world. Over 3,000 retail businesses are present in Glasgow contributing 12.5% to Scottish GVA. More than 90 million shoppers come to Glasgow per year.

Glasgow City has undertaken a number of development projects in its objective to provide a sustainable future for both businesses and its residents. The development which took place in preparation for the 2014 Commonwealth Games and the substantial infrastructure

investment, including The SSE Hydro Arena, demonstrates the city’s commitment to sustained regeneration. Indeed, the Hydro Arena is now recognised as the second busiest live music venue in the world.

The Glasgow city region also benefits from the second largest City Deal in the UK. Awarded in 2014, it promises over £1bn to fund major infrastructure projects, improve public transport and connectivity, drive business innovation and growth and generate billions of pounds of private sector investment. £115 million of this funding will be directed into the city centre and enhancing the overall retail and leisure experience of both those residing and visiting Glasgow.


3 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W 43 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W

Road

Glasgow city centre is located at the heart of the motorway network with the M8, Scotland’s main motorway connecting Glasgow to Edinburgh. The M8 also provides direct access to the north, south, east and west of Scotland through its connections with the M74, M73, M77 and M80. Major improvement works to upgrade the core of Scotland’s motorway network have recently completed. Works include the completion of the M8 between Baillieston and Newhouse, improvements to the Raith Interchange on the M74 and upgrading of the existing M8, M73 and M74.

Rail

Glasgow has the UK’s largest suburban rail network outside London, benefitting from two city centre train stations. Glasgow Central, Glasgow’s biggest train station has connections to all major English cities and London can be reached in around 4 hours. Glasgow Queen Street station connects Glasgow to the east and north of Scotland to destinations including Edinburgh, Perth, Dundee, Aberdeen and Inverness.

In recent years there have been many rail line improvements and extensions and Queen Street Station has begun a major multi million pound redevelopment and expansion.

4

COMMUNICATIONS

Bus

There are a number of operators running over 170 daily services across over 100 routes in and out of Glasgow to various surrounding locations. There are frequent bus services to and from Glasgow Airport, taking only 15 minutes.

Subway

Glasgow’s underground rail system has an inner and outer circle serving key locations across Glasgow through its 15 stations. Trains run every 4 minutes at peak times and are able to travel across the city centre in 10 minutes. The Glasgow Subway is currently undergoing a full scale upgrade and modernisation including the introduction of new trains, automated signalling and associated system improvements. The Hillhead Subway Station is located on Byres Road, 50 yards from the subject property.

Air

Glasgow is within an hour’s drive of three international airports, with Glasgow International Airport just 15 minutes from the city centre. Glasgow Prestwick Airport and Edinburgh Airport are also easily accessible being around a 60 minute journey time. Glasgow Airport hosts approximately 200 flights daily and is home to 30 airlines which fly to 120 destinations worldwide. There are 438 flights to London per week with a circa 1 hour 20 minute flight time. The airport terminal has recently been expanded and improved as part of a 10 year £200 million investment programme.

Glasgow is extremely well connected by a number of different transport modes including road, bus, rail, subway and air. In addition, Glasgow is continually investing in its transport infrastructure, with many projects ongoing which will improve and modernise various major transport systems.


BYRES ROAD & THE WEST END

B Y R E S R O A D I S T H E J E W E L I N T H E

C R O W N O F G L A S G O W ’ S E C O N O M I C A N D

S O C I A L L I F E , AT T R A C T I N G V I S I T O R S

F R O M G L A S G O W A N D B E Y O N D T O I T S

AT T R A C T I O N S B O T H D AY A N D N I G H T.


The most exciting development for Byres Road, the West End and the entire city is Glasgow University’s campus expansion and redevelopment. We have illustrated on the aerial photograph on the following page, the scale of the University site which lies adjacent to Byres Road.

Founded in 1451, the University of Glasgow (UoG) is the fourth oldest university in the English-speaking world. Today the University is ranked in the top 1% of the world’s universities and is the first and only UK University to be rated as 5 Stars Plus overall.

With more than 18,000 undergraduates and 7,000 postgraduates, the University of Glasgow welcomes students from over 140 countries worldwide each year.

With over 70 acres of prime city campus, the University is one of the largest employers in the west of Scotland with more than 6,000 staff, including 2,250 active researchers generating more than £200 million of research income per annum.

Following the acquisition of the adjoining 14 acre former Western Infirmary hospital site, the University will expand and transform its campus as part of a £1 billion development plan into a globally recognised iconic place of learning and research enhancing their position as a world leading institution.

Following receipt of planning permission and funding the University has appointed Multiplex as main contractor for this £1 billion development. This will include over 82,000 sq m (883,000 sq ft) of new academic space and 53,100 sq m (572,000 sq ft) of mixed residential, hotel and office space.

The importance of Byres Road to the city was recently demonstrated when the City Council embarked upon a £9 million public road improvement scheme which includes the upgrading of pavements, street furniture, tree planting, signage and cycle facilities.


GREAT WESTERN ROAD

BYRES ROAD GREAT WESTERN ROAD

KELVINGROVE ART GALLERY & MUSEUM

GLASGOW UNIVERSITY’S CAMPUS EXPANSION

BYRES ROAD

DUMBARTON ROAD

KELVIN HALL

BOTANIC GARDENS

SITUATION

HILTON GLASGOW GROSVENOR

ASHTON LA

NE

HILLHEAD SUBWAY


GREAT WESTERN ROAD

BYRE

S RO

AD

GREAT WESTERN ROAD

GREAT GEORGE STREET

HILL

HEAD

STR

EET

CECI

L STR

EET

VINICOMBE ST

GROSVENORCINEMA

QUEENMARGARET

UNION

CAILBRUICH

HILLHEADSUBWAY STATION

HILLHEADLIBRARY

GLASGOW BOTANIC GARDENS

RIVER KELVIN

ÒRAN MÓR

TESCOMETRO

WATERSTONES

SANTANDER

BOOTS

GREGGS

RBS

CAFE ANDALUZ

HILTON GLASGOWGROSVENOR

S

UBIQUITOUSCHIP

ASHT

ON LA

NE

INNES & GUNNTAPROOM

BREL

JINTY MGUINTY’S IRISH BAR

THE WEE CURRY SHOP

S’MUG COFFEE

TACO MAZAMA

BO'VINE MEATS & WINES

BREADMEATSBREAD

THE HANOI BIKE SHOP

THE BOTHY

PIZZA EXPRESS

LITTLE ITALY PIZZERIA

VODKA WODKA

TENNENT’S BAR

LA VITA SPUNTINITHE BASEMENT

ZIZZICAFE GO-GO

THE GARDENER

MARIO'S PLAICE

BEGIN

NIC’S NYC DELIMATILDA’S

THE PARLOUR

HILLHEAD BOOKCLUB

ATRIUM COFFEE

DOWANSIDE RD

HIGHBURGH RD

The population is made up of 320% of the British Average of Income Quintile 1, according to Oxford Retail Consultants, with the dominant lifestyle category being young couples and couples with no children.

The subject property is situated on the west side of Byres Road near the junction of Great Western Road and Observatory Road in the 100% prime retail location in this busy thoroughfare in Glasgow’s West End. The demographics of this area are quite extraordinary with almost 110,000 people within a 10 minute drive time. Further assessment commissioned by our clients shows almost 60% of the local catchment to be either A or B Social Economic Classification. This report also highlights that the majority of this store’s trade is drawn from the 74,000 people in the direct affluent West End suburbs.

SITUATION

3 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W 83 6 3 - 3 8 1 B Y R E S R O A D , G L A S G O W 8

DESCRIPTIONThe subject property comprises a foodstore formed over ground and basement floors which have been fitted out in the corporate style of Waitrose.

The ground floor is predominantly retail sales with the area to the rear at ground floor providing good service to the ground floor loading area. The basement provides staff and storage facilities access via internal stairs, with a goods lift providing access from ground to basement level. There is a car park located at roof level from Grosvenor Street via a ramp to the second floor level. There are approximately 49 spaces at first floor level (2 of which are disabled and 2 parent and child) with 26 spaces at second floor with 24 spaces reserved for the flat owners.

Grosvenor Court Residential flats

There are 24 residential flats above the foodstore, with each tenant holding a long leasehold title under the Ground Lease which has an expiry date of 24 June 2095. The block is known as Grosvenor Court. There are ten four apartment flats, ten of three apartments and four of two apartments. Grosvenor Court is accessed via a passageway leading off Byres Road and a private stairway and lift leading to the flats.


ACCOMMODATIONWe have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 and would estimate that the subjects extend to the following areas Gross Internal Areas:

Basement floor 11,170 sq ft

Ground floor 21,517 sq ft

Total GIA 32,687 sq ft

Note: These floors areas were agreed with the tenants for the Third Party review in August 2014.

TENANCYThe basement, ground, first and part second floors are let to Waitrose Limited on a FRI Lease from 27 September 2009 expiring 26 September 2029 subject to upwards only rent reviews on 26 August 2019 and 2024, at a current passing rent of £594,700 per annum.

The upper floor residential accommodation and 24 car spaces are let to individual occupiers on ground leases at a peppercorn rent.

TENUREThe entire property including the upper floor residential property is held on a heritable title (Scottish equivalent of English freehold).

RENTAL ANALYSISThe passing rent was set at Third Party in 2014. The Expert’s analysis was calculated as follows:

GIA: 32,687 sq ft Rate / sq ft: £17.75 £580,194Add: 2% for fit out: £14,505 £594,699Say: £594,700 per annum

COVENANTWaitrose Limited has a Dun & Bradstreet credit rating of 5A1. For the year ended 26 January 2019, the company reported sales turnover in excess of £6.2 billion, gross profit in excess of £1.2 billion and a tangible net worth of over £763 million.


EPCThis will be provided to genuinely interested parties.

PROPOSALWe are instructed to seek offers in excess of £11,150,000 (ELEVEN MILLION ONE HUNDRED AND FIFTY THOUSAND POUNDS STERLING) exclusive of VAT for our client’s heritable interest subject to and with the benefit of the existing lease. A purchase at this level would show an attractive Net Initial Yield of 5%, reversionary yield of 5.63% and equivalent yield of 5.63% after allowing for purchaser’s costs at 6.71%.

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).

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

CURRENT RENTAL VALUEThe premises will be subject to review with effect from 28 August 2019 and our clients have decided to allow a new owner to take this matter forward. We believe that the appropriate rental rate for such a prominent location and affluent catchment should be at the upper level of Waitrose comparables and have utilised £20 / sq ft. Comparable rental evidence will be provided to genuinely interested parties.

GIA: 32,687 sq ft Rate / sq ft: £20.00 £653,740Add: 2% for fit out: £16,343 £670,083Say: £670,000 per annum

Viewing & Further InformationPlease contact the sole selling agents:

Stewart [email protected] 07740 940 898

Cathal [email protected] 627 224

Graeme [email protected] 512 804

Sheridan Property Consultants37 One37 George Street Edinburgh EH2 2HN

Tel: 0131 300 0296

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; January 2020.


Noel [email protected] 999 799

Sheridan Property Consultants10 Fitzroy SquareLondon W1T 5HP

Tel : 020 7112 8046

Documents

WITH RESIDENTIAL UPPER FLOORS - Sheridan Property€¦ · The basement, ground, first and part second floors are let to Waitrose Limited on a FRI Lease from 27 September 2009 expiring