DOMINANT LEISURE INVESTMENT - THE BARRACKS, FORTHSIDE, STIRLING FK8 1QZ - Cushman & Wakefield
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DOMINANT LEISURE INVESTMENT
THE BARRACKS, FORTHSIDE, STIRLING FK8 1QZ
INVESTMENT SUMMARY
Stirling is a regionally Approximately Long income
dominant retail and leisure
destination which attracts a
2.9 million WAULT of 11.48
people live within an years to expiry and
host of high profile national
hour’s drive of Stirling 8.35 years to breaks
and international brands
95% of income from
Gross income of
national covenants of
Rent reviews in 2018 offer £449,781 pa
significant potential for &
reversion net income of
£421,108 pa
Long leasehold Offers in excess of
from Stirling Council
for 125 years expiring on £5,300,000 7.50% niy
(Five Million Three Hundred after allowing for
9th May 2132, at 5% of
Thousand Pounds Sterling) purchaser’s costs
annual rents receivable
2 Cushman & Wakefield The Barracks, Stirling FK8 1LD
Cushman & Wakefield The Barracks, Stirling FK8 1LD 3
STIRLING IS
STRATEGICALLY
POSITIONED
IN THE HEART The city has a The University of Stirling
primary catchment employs over 1,400 staff
OF SCOTLAND, of 224,000 people within with approximately
WITH EXCELLENT a 40 minute drive time 12,300 students
COMMUTER Raplock
Raplock River Forth
River Forth
Dunblane
Dunblane
CONNECTIONS TO Cambuskenneth
Cambuskenneth M9
M9 A91
A91
Stirling
GLASGOW (42KM) Stirling
A81
11
A81 The
TheBarracks
Barracks
Springkerse
Stirling
Cowdenbeath
Cowdenbeath
A92
A92 Kirkcaldy
Kirkcaldy
AND EDINBURGH
Stirling Springkerse
Golf
GolfClub
Club Industrial Estate
Industrial Estate
The Thistles
The Thistles A91 M90
M90
A91 A876
Bannockburn A876
Bannockburn
(58KM) VIA THE
Kings Park
Kings Park A905
A905 Valleyfield
Valleyfield Dunfermline
Dunfermline
M9
M9
M80
M80 AND M9
Cambusbarron M80 A985
A985
Cambusbarron
Stirling
StirlingRoyal
Royal
Infirmar yy
DennyM876
M876
Infirmar
Denny
RESPECTIVELY. Falkirk
Falkirk M9
M9 Queensferry
Queensferry
StStNinians
Ninians
Linlithgow A90
A90
Linlithgow A902
A902
Cumbernauld
Cumbernauld Broxburn
Broxburn
Edinburgh
Edinburgh
The city population is Newington
Newington
M80 Bathgate
expected to grow by M80 Bathgate
Livingston
Livingston A7
A711
9.17 %
Balerno
Balerno
A793
A793 M73
M73 Bonnyrigg
Bonnyrigg
M8
M8
Glasgow
Glasgow
A703
A703
A8
A8 Chapelhall
Chapelhall
M74
M74
M77
M77 Penicuik
Penicuik
by 2039 A73
A73 A71
A71
A725 Wishaw
Wishaw A701
A725 A702 A701
Hamilton
Hamilton A702
A726
A726
4 Cushman & Wakefield The Barracks, Stirling FK8 1LD
SITUATION
The subject property is situated within the
B Forthside Quarter between the city centre
and out of town retail parks. Accessed via
the new rail bridge immediately adjacent
to the development, the scheme is within
a 2 minute walk of Stirling rail station and
a 5 minute walk of Thistle Shopping Centre
and Stirling Bus Station.
C
E D
A
F
G
H
KEY
A. Thistle Shopping Centre
B. AMF Bowling
C. The Engine Shed
D. The Barracks
E. The Barracks Office Development
F. Premier Inn & Beefeater
G. 600-space Car Park
H. Stirling Enterprise Park
Cushman & Wakefield The Barracks, Stirling FK8 1LD 5
DESCRIPTION
The property was constructed in 2008 and comprises a 29,607
sq ft modern leisure development, consisting of an 8-screen,
1,071-seat multiplex cinema, three restaurant units and one kiosk
unit. The scheme benefits from excellent pedestrian links and
connectivity with the city centre via the stunning Forthside
Bridge, which also provides direct access to the city’s mainline
train station and principal bus station.
The Barracks provides the only cinema and modern casual
dining restaurants in the Stirling area, attracting the city’s large
affluent catchment population. The next alternative cinema and
leisure destination is located over 15 miles to the south east of
the subject property, in Falkirk.
C I N EM A
UNIT 2B
UNIT 2A
UNIT
2C
U NI T 1
6 Cushman & Wakefield The Barracks, Stirling FK8 1LD
TENANCY
The subject property has been measured on a gross internal areas (GIA) basis in accordance with the RICS Code of Measuring
Practice (6th Edition) and the approximate areas are as follows:
FLOOR LEASE LEASE BREAK RENT RENT RENT
ADDRESS TENANT COMMENTS
AREAS (GIA) START EXPIRY DATE REVIEW (PA) PSF
RPI linked service charge cap. Estimated
Multiplex 1,909.05 sq m shortfall for 2018 is £6,184.43.
Vue Entertainment Limited 23/01/2008 24/01/2028 - 23/01/2018 £244,812 £11.91 Upwards only rent review to open market
Cinema 20,554 sq ft
value in 2018.
Nando’s Chickenland 331.05 sq m Tenant break option subject to 6 months’
Unit 1 21/04/2008 20/04/2028 21/04/2023 21/04/2018 £82,179 £23.06 notice. Upwards only review to open market
Limited 3,563 sq ft value in 2018.
Miss Claudia Stewart
68.85 sq m Upwards only rent review to open market
Unit 2A & Mr Peter Keenan, 15/09/2008 14/09/2028 - 28/08/2018 £16,790 £22.66 value in 2018.
741 sq ft
partners of the firm Toast
The Restaurant Group
411.93 sq m Upwards only rent review to open market
Unit 2B (UK) Limited T/A Frankie 23/01/2008 22/01/2033 23/01/2023 23/01/2018 £100,000 £22.55 value in 2018.
4,434 sq ft
& Benny’s
Stephen Dennehy T/A Flip 29.30 sq m Tenant break option subject
Unit 2C 14/12/2015 13/12/2020 14/12/2018 - £6,000 £19.05 to 6 months notice.
and Shake 315 sq ft
2,750.13 sq m
£449,781
29,607 sq ft
EPC
The full EPC reports can be provided on request.
Cushman & Wakefield The Barracks, Stirling FK8 1LD 7
TENANT COVENANT
TENANT YEAR TO DATE TURNOVER PRE TAX PROFIT NET WORTH EXPERIAN RATING
24/11/2016 £282,647,000 £33,939,000 £293,174,000 Toast is a privately owned
cafe operation which has
100 (Very Low Risk)
been trading out of The
26/11/2015 £283,094,000 £31,186,000 £265,945,000
Barracks since 2008.
27/11/2014 £244,899,000 £17,888,000 £301,645,000
28/02/2016 £602,031,000 £79,175,000 -£184,207,000
Flip and Shake is a privately
owned American style café
22/02/2015 £517,849,000 £64,663,000 -£261,779,000 92 (Very Low Risk) operation which has been
trading out of The Barracks
23/02/2014 £470,744,000 £68,693,000 £73,999,000
since 2015.
27/12/2015 £511,074,000 £69,353,000 £96,216,000
27/12/2014 £483,722,000 £73,487,000 £98,199,000 97 (Very Low Risk)
27/12/2013 £446,787,000 £64,724,000 £85,813,000
8 Cushman & Wakefield The Barracks, Stirling FK8 1LD
FORTHSIDE
QUARTER
Stirling is a regionally dominant city with a strong retail and leisure
offer. The city centre is anchored by The Thistles Shopping Centre
which provides approximately 500,000 sq ft of high quality retail
space and 1,350 car parking spaces. Springkerse Retail Park provides
264,000 sq ft of non-food, DIY and Household retailing, and
Burghmuir Retail Park provides 58,300 sq ft of ‘Open Class 1’ retailing,
providing the principal out of town retail warehouse destination.
Forthside is a newly established 40-acre, vibrant and sustainable city
quarter, which occupies a prominent position beside the city centre.
The area has been significantly redeveloped to provide a high quality
mixed use environment and includes the following:
■6
0-bedroom Premier Inn hotel and Beefeater restaurant. The hotel has
planning consent for a 3 storey extension adding a further 30 rooms.
■1
6,000sq ft of high quality office accommodation within former
Army barracks. Let to the Water Industry Commission, Volunteer
Development Scotland, Central Registered Body in Scotland and Zero
Waste Scotland.
■S
tirlingCouncil and The Robertson Trust have recently announced
plans to re-develop the remaining former Army barracks to create a
new £5 million third sector hub.
■ I n
July 2017, Stirling welcomed Scotland’s first dedicated building
conservation centre, the Engine Shed. Located adjacent to the subject
property, the Engine Shed is run by Historic Environment Scotland and
serves as a central hub for building and conservation professionals and
the general public.
■6
00 car parking spaces operated by Stirling City Council provide the
major parking for the scheme, charging £1.20 per day.
Cushman & Wakefield The Barracks, Stirling FK8 1LD 9
LEISURE MARKET
The UK F&B market has seen sustained growth and expansion
since 2008. Spending in the eating out market has consistently
grown since 2014 and is forecast to increase by a further 17%
over the next five years.
As a result, in primary centres and regional malls across the
UK the proportion of comparison retail (clothing, footwear,
white goods) as a percentage of total retail is decreasing and is
being partially replaced by food and beverage (F&B) and leisure
offerings. Occupier demand in the F&B sector is expected to
strengthen over the medium term and as competition for the
best locations increases, rental growth within the sector is
anticipated.
Rental Growth Potential
Rents for prime casual dining in Scotland have grown from
approximately £23.00 psf to £30.00 psf over the last 5 years.
This indicates that the passing rents of the restaurant units
are reversionary. Recent comparable rental uplifts have been
achieved at:
■M
cDonalds, Fife Leisure Park - rent increased from £23.50
to £29.50 psf (Q4, 2016 rent review)
■F
rankie& Benny’s, Straiton Retail Park - rent increased from
£28.22 to £29.32 psf (Q2, 2015 rent review)
In the last 12 months the following new leases have been agreed:
■F
rankie
& Benny’s agreed a rent of £30.00 psf at Inverness
Shopping Park
■N
ando’s agreed a rent of £30.00 psf at Inverness Shopping Park
10 Cushman & Wakefield The Barracks, Stirling FK8 1LDTENURE Long leasehold from Stirling Council for 125 years expiring on 9th May 2132, at 5% of annual rents receivable. 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). Cushman & Wakefield The Barracks, Stirling FK8 1LD 11
PROPOSAL
We are instructed to seek offers FOR VIEWINGS & ENQUIRIES:
in excess of £5,300,000 (Five Sarah Stewart
Million Three Hundred Thousand Tel: +44(0)131 222 4524
Email: sarah.stewart@cushwake.com
Pounds Sterling) subject to contract
Stephen Bibby
and exclusive of VAT for the Long Tel: +44(0)131 222 4523
Leasehold. A purchase at this level Email: stephen.bibby@cushwake.com
would reflect a net initial yield of Erin Mills
7.50% after allowing for purchaser’s Tel: +44(0)131 222 4564
costs of 6.12% based on Scotland’s Email: erin.mills@cushwake.com
Land and Buildings Transaction
Tax (LBTT).
MISREPRESENTATION ACT
Cushman and 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: (i) These particulars are produced in good faith, but are
a general guide only and do not constitute any part of a contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give
representation or warranty whatever in relation to this property. (iii) the property is offered subject to contract and unless otherwise stated all rents and outgoings are stated exclusive of VAT. (iv) Floor areas, measurements
or distances given are approximate. (v) 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. (vi) 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 as required. September 2017.You can also read
