for sale 100% prime retail investment 2-4 ... - 2-4 eastgate...for sale 100% prime retail investment...
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100% PRIME RETAIL INVESTMENTFOR SALE 2-4 EASTGATE, INVERNESS- Re based rent of £150,000 per annum (£65/sq ft Zone A)
- Net initial yield of 6.42%
- Let to Bank of Scotland PLC, an undoubted 5A1 Covenant
- FRI Lease expiring 29 July 2029 (circa 10 years unexpired)
- Situated in 100% prime pitch
- Excellent opportunity to acquire a well let prime High Street retail investment in one of Scotland’s busiest tourist cities
OFFERS OVER £2.2 MILLION
ABERDEEN
INVERNESSPETERHEAD
FORT WILLIAM
OBAN
DUNDEE
STIRLING
ST ANDREWS
A7
A72
A68
A76
A1
A697
A85
A83
A9
A9
A96
A95
A82
A92
M90
M80
M9
M8
M77
M74FIRTH
OF CLYDE
FIRTHOF FORTH
GLASGOW EDINBURGH
LOCATIONInverness is the commercial, administrative and business centre for the Highlands and Islands region of Scotland. Inverness is one of the fastest growing cities in Europe with a resident population of approximately 65,000 people. The City is the retail capital of the Scottish Highlands and benefits from a primary shopping catchment of around 300,000 people. The nearest comparable retailing centre is Aberdeen which is 168 kilometres (104 miles) to the south-east. The other major Scottish cities of Edinburgh and Glasgow are located253 kilometres (157 miles) to the south and 273 kilometres(170 miles) to the south-west respectively. As the capital of the Highlands, Inverness benefits from an estimated 1.6 million tourists visiting the City every year.
COMMUNICATIONSInverness benefits from a very good transport infrastructure as summarised below.
RoadThe City is situated at the northern end of the A9 which links into Perth, the Scottish motorway network and in turn, to Edinburgh and Glasgow. The A96 provides links to Aberdeen to the east and the A82 provides links to Fort William to the south-west.
RailThe mainline railway station is situated in the City Centre providing direct access to the rail network both locally and nationally. There are direct services to Glasgow, Edinburgh and a regular sleeper service to London. To the east there are services to Aberdeen.
AirInverness Airport is located 16 kilometres (10 miles) east of the City. The Airport has directed connections and daily services to most of the major UK airports including London Heathrow, Gatwick, Luton, Manchester, Edinburgh and to Orkney, Shetland and Western Isles.
one of thefastest growingcities in Europe
current population of 65,000
wider catchment populationestimated at300,000 people
Capital of the Highlands with over 1.6m tourists visiting every year
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
ECONOMYInverness is developing as a centre of excellence for life sciences commercialisation and research. The country’s largest life sciences employer, LifeScan Scotland, is based in the City, along with the prestigious Centre for Health Science. The centre symbolises the City’s ambition to play a central role in the research and development of medical devices and bio-technology. There are more than 70 life sciences organisations operating in the Highlands and Islands with the sector worth an estimated £131 million.
As well as tourism other key business sectors include retail, construction, public administration, IT services and commercial activities related to the primary industries of forestry, agriculture, and fisheries which form an important part of the Highland economy.
Many new industries are also being attracted to the City – notably renewables with two of Scotland’s leading wave and tidal companies based in the city.
In addition to the public sector major private employers in Inverness include Lifescan Scotland (part of Johnson & Johnson), Scottish & Southern Energy, Global Energy Group (currently developing Nigg Energy Park), Orion Group and Capgemini.
TOURISMInverness is the gateway to many of Scotland’s major tourism destinations and as such tourism is a key business sector.
The population is enhanced further by the tourist industry which draws approximately 1.6 million tourists to the city each year. It is estimated that the tourism sector supports around 13,300 jobs and generates over £370m (£735m when you include the whole Highlands & Islands region) of revenue annually for the economy.
This swell in population during the summer months is best illustrated in the hotel occupancy rates which show the summer months regularly reaching full capacity.
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
A9 DUALLING(PERTH TO INVERNESS)The Scottish Government has committed to a£3 billion infrastructure project which involves the upgrading of 80 miles of single carriageway along the A9 between Perth and Inverness by 2025.
The project is well underway and is designed to deliver economic growth through improvements to road safety and journey times as well as better links to pedestrian, cycling and public transport facilities. The project will provide greater access to the many tourism and recreation sites along the route of Scotland’s longest trunk road.
UNIVERSITY OFHIGHLANDS & ISLANDSThe new facility which represents a £50 million investment occupying 18,500 sq m has created an iconic and modern environment at Beechwood Campus. A selection of courses from national certificatesto post graduate degrees are taught to over 6,500 full time and part time students from the Inverness Campus.
The commitment to the new campus also involved the creation of the first purpose built student housing accommodation in the city which by the start of the 2017 academic year reached 300 beds. The first phase of this student housing was funded by Aviva. Further information can be provided at www.invernesscampus.co.uk.
INVERNESS CITY DEALThe Scottish & UK Governments have confirmed details and pledged a £315 million commitment to Inverness and the wider Highlands area which will include improved transport links, digital connectivity and creating new skill academies,mostly in Inverness.
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
DESCRIPTIONThe property comprises a Bank of Scotland branch over ground, first and second floors. The ground floor is used as general banking space and the two upper floors are used as office accommodation for back room banking staff. The entire premises have been completely redeveloped behind the existing façade. All three floors provide open plan accommodation, accessed via the main Eastgate frontage and a secondary access from Market Brae. All three floors are serviced by a lift and two concrete staircases.
ACCOMMODATIONWe have measured the subject premises in accordance with the RICS Code of Measuring Practice (Sixth Edition) and would estimate that the subjects extend to the following areas and dimensions:
Gross Frontage 49 ft 0 ins / 14.93 mNet Frontage 44 ft 0 ins / 13.42 m
In Terms of Zone A (ITZA) we calculate a reduced area of 234.86 sq m (2,528 sq ft).
TENUREThe property is held on a heritable title (Scottish equivalent of English freehold).
FLOOR ACCOMMODATIONAREA
(SQ M)AREA
(SQ FT)
Ground Banking Hall 281.22 3,027
First Offices & Stores 229.60 2,471
SecondStaff Room, Offices,
Stores & Toilets223.32 2.404
TOTAL 734.14 7,902
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
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HARRIS
TWEED
HOUSE O
F ARAN
SLATERS
MENSW
EAR
ALBA TR
BRITISH HEART
FOUNDATION
AVEL
SITUATIONThe premises occupy a 100% prime retail location on Inverness’s principal retailing thoroughfare. The property is situated in a prominent location on Eastgate directly opposite Eastgate Shopping Centre. Occupiers in the vicinity include M&S, CEX, HSBC, Caffè Nero, Boots, Optical Express and Hotter Shoes.
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
A82
CULCABOCK
RAIGMORE HOSPITAL BEECHWOOD
inverness
CLACHNAHARRY RD
MILBURN RD
ANNFIELD RD
TELFORD ST
GLEN
URQU
HART
RD
ISLAND BANK RD
ACADEMY ST
HAUG
H RD
A9
A9
A82
VIEWING & FURTHER INFORMATION
Stephen Gunn0141 221 [email protected]
IMPORTANT NOTICE Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No representation or warranty is made or given either during negotiations or in particulars by vendor, lessors or the agent. All figures are exclusive of rates, service charge, VAT and all other outgoings. August 2019.
Neil Calder01463 [email protected]
FOR SALE
PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS
TENANCYThe lease has recently been regeared and extended with Bank of Scotland Plc on Full Repairing and Insuring terms expiring 29 July 2029. The passing rent is £150,000 per annum (£65 / sq ft Zone A). The Lease provides for upwards only rent reviews on 30 July 2024.
COVENANTThe subject property is let to Bank of Scotland. Bank of Scotland was taken over by Lloyds Banking Group in January 2009. Lloyds Banking Group is the largest retail bank in the UK. In 2018 it turned over £17bn, with profits of £5bn.
PROPOSALWe are instructed to seek offers in excess of Two Million Two Hundred Thousand Pounds (£2,200,000) 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 approximately 6.42% allowing for purchasers costs.
VATOur clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price. It is anticipated the sale could be treated as a TOGC (Transfer of a Going Concern).
LEGAL COSTSEach party will be responsible for their own legal costs incurred in connection with the transaction.
EPCBand E.
LEGAL PACKFull legal pack available to interested parties.