EAST KILBRIDE RETAIL PARK - Cushman & Wakefield
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EAST KILBRIDE RETAIL PARK R E TA I L W A R E H O U S E I N V E S T M E N T I N A P R I M E L O C AT I O N MAVOR AVENUE, EAST KILBRIDE G74 4QX
2 Prime retail investment sale with an attractive tenant profile INVESTMENT SUMMARY EAST KILBRIDE IS SCOTLAND’S MOST SUCCESSFUL NEW TOWN AND FORMS PART OF THE GLASGOW CONURBATION. PART OF A DOMINANT RETAIL WAREHOUSING CLUSTER SERVING A PRIMARY RETAIL CATCHMENT OF 144,000 PEOPLE. MODERN RETAIL PARK COMPRISING THREE UNITS, EXTENDING TO A TOTAL OF 34,898 SQ FT (GIA). RETAILER LINE-UP OF HOME STORE + MORE, CARPETRIGHT AND BENSONS FOR BEDS. DEMAND FOR THE PARK HAS BEEN DEMONSTRATED BY THE RECENT ARRIVAL OF HOME STORE + MORE AND IN THE WIDER PARK BY THE ARRIVAL OF PETS AT HOME, THE RANGE, HALFORDS HOME BARGAINS AND ALDI. THE PROPERTY PROVIDES AN ANNUAL RENTAL OF ￡849,965 PER ANNUM. ATTRACTIVE WAULT TO EXPIRY OF 7.31 YEARS AND TO BREAK OF 6.54 YEARS. WE ARE INSTRUCTED TO SEEK OFFERS OVER ￡8,000,000 FOR OUR CLIENT’S HERITABLE INTEREST IN THE PROPERTY. A PURCHASE AT THIS LEVEL REFLECTS A NET INITIAL YIELD OF 9.96%, ALLOWING FOR PURCHASER’S COSTS OF 6.66%. EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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Excellent accessibility to the M77, M74 and M8 which form the
heart of the country’s motorway network.
10 miles south east East Kilbride has a
of Glasgow city population of over
A81 M80
centre 75,000 A82
A879
A803
1
13
A814
M8 M8
Coatbridge
L O C AT I O N M8 GLASGOW A8
Dennistoun A89
20
A89 Baillieston 8/19
1
East Kilbride is part of the Glasgow conurbation, approximately 10 miles 22 M8 A8
south east of Glasgow city centre. It is the largest town within the A8
A74 M73 M8
South Lanarkshire council area and has a population of over 75,000. 1A
M77 3 M74
M74 4
A736 2
RUTHERGLEN A725
Shawlands A749
C O M M U N I C AT I O N S A730
Uddingston Bellshil
A77
A724
East Kilbride has excellent accessibility to the M77, M74 and M8 which B766
B7071
form the heart of the country’s motorway network. The A725/A726, on 3 5
A727 Giffnock A749
which the subject property is situated is the principal east/west route
through East Kilbride and forms the Glasgow Southern Orbital which Carmunock
Blantyre M74
links the town with the M77 to the west and the M74 to the east.
A727 EAST KILBRIDE A724
RETAIL PARK A725
As part of the Glasgow City Deal, there will be improvements made M77 HAMILTON
to transport infrastructure, including upgrades to the A726, the M77
and the M8. This will make East Kilbride an even more attractive East A725
location to residents and it will also make East Kilbride Retail Park even
A726 Kilbride
more accessible. 5 A726
A723
Eaglesham A726
EAST
EAST KILBRIDERETAIL
KILBRIDE RETAILPARK
PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
4
KINGSGATE
RETAIL PARK
PETROL
EAST KILBRIDE RETAIL PARK A749
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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S I T U AT I O N
EAST KILBRIDE
SHOPPING CENTRE
East Kilbride Retail Park is situated on the north side
of the town, on the junction with the main arterial
routes to Glasgow (A749) and to Hamilton,
Motherwell and Bothwell (A725).
East Kilbride Retail Park lies beside Kingsgate Retail
Park, which provides over 268,821 sq ft of retail
warehousing, anchored by Sainsbury’s with other
tenants including TK Maxx, Boots, Nike, M&S Simply
Food and Next.
BARRATT HOMES
NEW DEVELOPMENT
Adjacent to the subjects is a 106,000 sq ft B&Q .
Opposite the parade is another retail parade let to
The Range, Halfords, Pets at Home and Currys/PC
World. There is also a neighbouring new
Mavor Stewartfield
Avenue Way development let to Aldi and Home Bargains.
A749 The retail warehouse provision on the south side of
Glasgow is limited, with the 166,350 sq ft Auldhouse
Retail Park being the main park, which is 7 miles
away and a 23 minute drivetime.
KINGSGATE
RETAIL PARK Immediately to the south of East Kilbride Retail Park
is a new housing development on the site of the old
EAST KILBRIDE Rolls Royce factory, creating 477 new homes.
RETAIL PARK
A749
A749
A725
Excellent road links
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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East Kilbride has a primary retail market
population of 144,000 (Source: PROMIS).
DEMOGRAPHICS Proposed Housing Development
Falkirk between 2017-2022
Greenock The East Kilbride catchment population
EDINBURGH includes a higher than average proportion In South Lanarkshire between 2017-2022
GLASGOW (17%) of older working age adults aged there are plans for a further 3,800 new
Paisley 45-64 (Source: 2018 CACI), due to it being an private sector homes and 1,100 new
attractive location for families. This flows affordable homes. Part of this housing need is
Hamilton
through to there being a stable number of satisfied by the redevelopment of the
East Kilbride adjacent former Rolls Royce site, which will
15-24 year olds which is in line with the
UK average. accommodate 477 homes.
Within a 10 minute drive time catchment of Now that key infrastructure funding has been
the retail park, the annual expenditure agreed as part of the ￡1.13 billion Glasgow
estimate is around ￡589,355,364 (Source: 2018 City Region City Deal, more than 2,500 new
CACI). Within a 10-20 minute drive time homes are set to be built in East Kilbride
Ayr catchment of the retail park, the annual post 2022.
expenditure estimate is around
￡2,391,530,180 (Source: 2018 CACI).
The retail catchment includes the wealthy
suburban areas of Glasgow, which include
Giffnock, Newton Mearns and Whitecraigs.
EAST KILBRIDE - Drive time catchment
0-10 miles
10-20 miles
20-30 miles
30-40 miles The retail catchment Plans for a further 3,800
includes the wealthy new private sector
40-50 miles suburban areas of homes and 1,100 new
Glasgow affordable homes
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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Modern retail park
comprising three units,
extending to a total of
34,898 sq ft (GIA).
DESCRIPTION
The subject property comprises a parade of three
retail warehouse units of steel frame construction,
with the walls a combination of blockwork and
composition cladding panels. The units were
originally developed in 2005 alongside the
106,000 sq ft B&Q. Units 1 and 3 have tenant
installed mezzanines.
The units are accessed from Mavor Avenue. The
terrace has 171 allocated car parking spaces,
providing a ratio of 1:204 with the adjoining B&Q
having a further 422 spaces. The units are
serviced via Mavor Avenue onto a fully enclosed
yard to the rear of the terrace.
171 car parking spaces
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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TENANCY SCHEDULE
The current rent is ￡849,965 per annum. Modern retail park
comprising three units
Attractive WAULT to expiry of 7.31 years and to break of 6.54 years.
UNIT TENANT AREA (SQ FT) LEASE START LEASE EXPIRY BREAK RENT REVIEW RENT (PA) RENT (PSF) COMMENTS
Unit 1 Ogalas UK Limited 20,443 13/09/2005 12/09/2025 - 13/09/2020 ￡450,000 ￡22.01 57 weeks rent free from the date of the assignation
Guarantor – Ogalas Unlimited Company (10/04/2018) in the form of a discounted rent for the first
t/a Home Store + More 4 years. Vendor to top-up. Tenant option to extend lease
for 7 years on expiry, rent payable to be on open market
basis subject to a minimum rent of ￡307,500 per annum.
An additional installed mezzanine of 5,717 sq ft.
Unit 2 Carpetright Plc 10,227 13/09/2005 12/09/2030 - 13/09/2020 ￡265,000 ￡25.91
Unit 3 Steinhoff UK Group Properties Ltd 4,228 10/07/2006 09/07/2026 10/07/2021 10/07/2021 ￡130,715 ￡30.92 A full mezzanine floor has been added by the tenant
t/a Bensons for Beds of 3,964 sq ft.
Display Phoenix Outdoor Advertising Ltd - 31/01/2012 30/01/2021 - - ￡4,250 - Continuing by tacit relocation.
Board
34,898 ￡849,965
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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COVENANT STRENGTH
COMPANY NAME COMPANY NO. YEAR END TURNOVER PRE-TAX PROFIT NET WORTH Demand for the Park has been
Ogalas UK Limited 10777605 31st Jan 2019 ￡3,032,413 (￡1,259,122) (￡1,320,176)
demonstrated by the recent
Ogalas Unlimited Company 382 168 31st Jan 2016 €96,202,710 €12,011,869 €25,072,864
arrival of Home Store + More
31st Jan 2015 €78,728,332 €8,821,976 €28,589,660
and by the arrival of Aldi,
Home Bargains, Pets at Home,
31st Jan 2014 €64,461,032 €5,125,602 €20,957,848
The Range and Halfords within
Carpetright Plc 02294875 27th Apr 2019 ￡386,400,000 (￡24,800,000) ￡20,100,000
wider East Kilbride Retail Park.
28th Apr 2018 ￡443,800,000 (￡70,500,000) (￡7,700,000)
29th Apr 2017 ￡457,600,000 ￡900,000 ￡20,700,000
Steinhoff UK Group Properties Limited 01024575 30th Sep 2017 ￡76,966,000 ￡2,120,000 ￡33,632,000
24th Sep 2016 ￡96,124,000 ￡8,208,000 ￡28,005,000
27th Jun 2015 ￡80,832,000 ￡6,332,000 ￡22,123,000
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION
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STEW
ARTF
IELD AVENU
E
TENURE VAT
The property is held on a heritable title (Scottish equivalent of The property has been elected for VAT and therefore VAT will be
English Freehold). payable on the purchase price. However, it is anticipated the sale
El Sub
Sta will be treated as a Transfer of a Going Concern (TOGC).
AML
EPC
A successful bidder will be required to provide AML information in
E accordance with HMRC regulations when Heads of Terms are agreed. EPCs are available on request.
RID
ILB RK
S T K IL PA
EA ETA
R
PLANNING
The site was originally given planning permission in September 2004 for
the development of two non-food retail warehouse units with further
permission granted for a third unit in December 2005. The original consent
limited the use of the units to the sale of D.I.Y goods, furniture, carpets,
electrical goods, household furnishing and motor accessories. In 2012 the
landlord obtained consent to broaden the permitted uses for the occupancy
of Toys R Us of Unit 1 to include the sale of toys, games, sports equipment,
cycles and baby products. In 2015, Toys R Us successfully applied to further
widen the permitted uses of their unit to include the retail sale of fashion
accessories from not more than 25 sq m of the unit.
SERVICE CHARGE
The current service charge budget to the year end 30th April 2020 is
￡24,500. This reflects a cost to the tenants of ￡0.70 per sq ft based on
the areas within the tenancy schedule on Page 8.
EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATIONPROPOSAL We are instructed to seek offers in excess of ￡8,000,000 (Eight Million Pounds Sterling) exclusive of VAT for the benefit of our client’s interest. A purchase at this level would reflect a net initial yield of 9.96%, after allowing for purchaser’s costs of 6.66% based on Scotland’s Land and Buildings Transactions Tax (LBTT). F U R T H E R I N F O R M AT I O N For further information or to arrange an inspection, please contact: STUART SPALDING STEPHEN BIBBY KYLE STUART dd: +44 (0) 141 304 3243 dd: +44 (0) 131 222 4523 dd: +44 (0) 141 304 3205 m: +44 (0) 7717 178 284 m: +44 (0) 7799 361 290 m: +44 (0) 7827 622 303 e: stuart.spalding@cushwake.com e: stephen.bibby@cushwake.com e: kyle.stuart@cushwake.com MISREPRESENTATION ACT. Cushman and Wakefield LLP 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. February 2020. Alamo Design 01924 471114.
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