prime supermarket investment - cushman & wakefield - 94 n… · prime supermarket investment...

Prime Supermarket Investment94 Nicolson Street / Edinburgh / EH8 9EW

SITUATED IN THE HEART OF EDINBURGH’S “OLD TOWN”

94 Nicolson Street / Edinburgh / EH8 9EW

INVESTMENT SUMMARY Prime supermarket investment located in Edinburgh city centre

Situated in the heart of Edinburgh’s “Old Town” on one of the main arterial routes into Edinburgh city centre

Vibrant and affluent residential area with a significant student population due to the close proximity to the University of Edinburgh’s “Central Area Campus”

Fully let to Tesco Stores Limited on a FRI lease expiring 2nd February 2025

The property has averaged rental growth of 4.67% pa over the last 15 years

Passing rent of £317,500 per annum (£19.00 per sq ft)

Absolute Ownership (Scottish equivalent of English Freehold)

Offers in excess of £5,450,000 (Five Million, Four Hundred and Fifty Thousand Pounds Sterling), representing an attractive Net Initial Yield of 5.49% after allowing for standard purchaser’s costs based on LBTT

LOCATION Edinburgh, Scotland’s capital city, sits at the heart of a diverse regional economy which provides the seat of Scotland’s Government, is the home to the nation’s legal system and is a globally recognised financial centre. The city has a population of approximately 486,000 people which is predicted to grow to over 600,000 by 2033, with a regional catchment of over 1.6million.

Edinburgh attracts 3.5million tourists per annum and is the second most visited city in the UK after London. In addition, the city is host to the world’s largest annual arts festival, adding an estimated £245million to the local economy.

Edinburgh is a globally recognised higher education city, hosting 4 significant universities with approximately 47,000 full time students. The University of Edinburgh (including Edinburgh College of Art) has almost 25,000 full time students and is ranked 17th in the world according to the latest QS World University rankings.


VIBRANT AND AFFLUENT RESIDENTIAL AREA

WITH A SIGNIFICANT STUDENT POPULATION


1. Subject Property2. University of Edinburgh Central Campus3. Edinburgh Old College4. Festival Theatre5. National Museum of Scotland6. Edinburgh Waverley Train Station

7. Princes Street Gardens8. Princes Street9. Edinburgh Castle10. George Street11. West End12. Exchange Financial District

13. George Heriot’s School14. Quartermile15. The Meadows

Tram line Bus route

1

10

9

7

6

5

2

14

15

13

12

11

4

3

8

SITUATION Nicolson Street is located in Edinburgh city centre, approximately 0.5 miles west of Holyrood Park and 0.7 miles south of Princes Street. The street forms a continuation of South Bridge, leading south from Princes Street and is a vibrant residential and retail location. The subjects are situated in a prominent position on the east side of Nicolson Street, south of Nicolson Square and close to the junction with West Nicolson Street. Nearby occupiers include Starbucks, Holland & Barrett, Scotmid, Greggs, Superdrug and Lidl.

The property is situated less than 5 minutes walk from the University of Edinburgh’s central campus which is considered the principal university area and is also a key location for the annual Edinburgh Festival Fringe during the month of August.


CHAMBERS STREET

MURRAYFIELD

RUGBY

STADIUM

Edinburgh Castle

HIGH STREET

MORRISON ST

NO

RTH B

RIDG

E

LOT

HIA

N R

OA

D

CA

ST

LE ST

G EO RG E STR E E T

QUEENSFERRY ST

CHARLOTTE

HA

NO

VE

R ST

ST ANDREW

MULTREES WALK

SQUAREB

ROU

GH

TON ST

SQUARE

QUE E N STR E E T

ST JAMESCENTRE

Waverley

Station

WEST M

AITLAND S

T

B ROUG H TON R D

EYR E PL ACE

ROYA L BOTA N ICG A R D E N S

Wa ter o f Le i th

H E N DE RSON ROW

CO M E LY BA N K

BR

AN

DO

N S

THaymarketStation

FOUNTAINBRIDGE

SEMPLE ST

L A U R I STON P L ACE

GRASSMARKET

WEST PORT

CASTLE TERR

BREAD ST

LADY LAWSON ST

ROSE STR E E T

H I LL STTH I STLE ST

TH I STLE ST

TH

E MO

UN

D

FR

ED

ER

ICK S

T

LON DON R D

LE ITH W

ALK

PI LR IG STREET

MCDO

NALD RO

AD

R E G E NT R D

CALTON RD

CANONGATE

CALTON HILL

ELM R

OW

EA

ST

ER

RO

AD

HOLYROOD ROAD

HOLYROOD PALACE

THE SCOTTISH

PARLIAMENT

TORPHICHEN ST

GRO

VE ST

WEST

APPROACH ROAD

GEO

RGE IV B

RIDG

E

PLEASA

NC

E

NICO

LSON

STREET

PONTON ST

GILMORE PLACE MELVILLE DRIVE

MEADOWS

BRUNTSFIELD PLACE

ST LEON

NA

RD

S

BRUNTSFIELD LINKS

H E R IOT ROW

E A ST LON DON ST

NO RTH U M B E RL A N D ST

GREAT KING ST

CU M B E RL A N D ST

EAST CLAREM

ONT ST

WARR ISTON ROAD

INV

ER

LEITH

RO

W

ST STEPH

EN ST

HO

WE S

T

ST V

INC

EN

T ST

CIR

CUS L A N E

GLO

UC

ES

TER LA

NE

G LE NO G LE ROAD

F E TT E S ROW

DU

ND

AS S

T

RODNEY STREET

UN

ION STREET

MELVILLE ST

CHAMBERS STREET

Q UE E N S F E RRY R D

DEAN PARK CRESCENT

R AE B U R N PLACE

G RA NG ECR I CK E T

CLU B

WEST APPROACH ROAD

GORGIE ROAD

SLATEFORD ROAD

ANGLE PARK TERRACE

CRAIGLEITH PARK

DALR

Y RO

AD

DUNDEE ST

POLWARTH GARDENS

POLWARTH TERRM

ERCHISTON AVENUE

VIEWFO

RTH

ROSEBURN TERRACECORSTORPHINE ROAD

QUEENSFERRY ROAD

RAVELSTON TERRACE

CHESTER STREET

A LBY N P L

WEST COATES HAYMARKET TERRACE

MARKET STREET

OR

CHA

RD B

RA

ELE

AR

MO

NTH

AV

E

CO

ME

LY BA

NK A

VE

LEA

RM

ON

TH

GR

OV

E

LE A R MO N TH G DN S

S LE A RM ONTH GDN S

LEARMONTH T LN

MO

RAY PLACE

THE

PRINCES STREET

SHANDWICK P

L

YO RK PL ACE

DESCRIPTION The property comprises a ground floor retail unit within an attractive Grade B Listed building. Internally the unit has been fitted out to the tenant’s usual corporate style with ancillary storage and office accommodation to the rear. The property benefits from a substantial frontage and main entrance onto Nicolson Street, with service access to the rear.

The subjects have been measured on a gross internal area basis in accordance with RICS Code of Measuring Practice (Sixth Edition) and the approximate areas are as follows:

Area Sq M Sq Ft

Ground Floor 1,552.97 16,716


TENURE The property is held Absolute Ownership (Scottish equivalent of English Freehold).

TENANCY The entire property is let to Tesco Stores Limited, trading as Tesco Metro, until 2nd February 2025, with 5 yearly upward only rent reviews to Open Market Value. The current passing rent is £317,500 per annum, which was agreed at review on 2nd February 2015.

RENTAL GROWTH Due to the exceptionally strong fundamentals of the location and the excellent trading performance of the store, the property has demonstrated consistently high levels of rental growth, as shown in the table below:

YEAR Rent (per annum)

2000 £160,000

2005 £240,000

2010 £290,000

2015 £317,500

Average Rental Growth (per annum) = 4.67%.

TENANT COVENANT Tesco is the UK’s dominant supermarket operator, with a market share of 29.1%. The company was founded in 1919 and now trades from over 3,350 stores across the UK, employing over 310,000 people.

Tesco Stores Limited (Company Number 00519500) has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure.

Year Ending26th February 2012

(000s)25th February 2013

(000s)23rd February 2014

(000s)

Turnover £41,981,000 £42,662,000 £42,547,000

Pre-Tax Profit £2,126,000 £921,000 £1,696,000

Total Net Worth £6,894,000 £3,113,000 £3,038,000

Misrepresentations Act 1967 Cushman & Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agents(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents, is free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. June 2015.

EPC The EPC rating for the unit is E. A full EPC can be provided upon request.

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

PROPOSAL We are instructed to seek offers in excess of £5,450,000 (Five Million, Four Hundred and Fifty Thousand Pounds Sterling), subject to contract and exclusive of VAT for the Absolute Ownership. A purchase at this level would reflect an attractive Net Initial Yield of 5.49% after allowing for purchaser’s costs based on LBTT.


John BuchananTelephone: 07860 248219

Email: [email protected]

Calum CoweTelephone: 0131 226 8759


Steven NewlandsTelephone: 0131 226 8756


prime supermarket investment - cushman & wakefield - 94 n… · prime supermarket investment...

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