Riverside Retail Park, Leven - Retail Park Investment Opportunity - Cushman & Wakefield
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Riverside Retail Park, Leven Retail Park Investment Opportunity
Riverside Retail Park, Leven
Investment Summary
Leven is an attractive coastal town located 14 miles from St Lying adjacent to the town centre, Riverside Retail Park is the
Andrews and 37 miles from Edinburgh. only retail park serving the area and is opposite a Sainsbury’s
store (circa 42,500 sq ft) and Home Bargains.
The town forms the main retailing provision for the Levenmouth
conurbation which has a population of over 38,000 people, with Opportunity to add value through adding a drive-thru, subject
significant new housing planned. to planning.
Net income of £521,987 per annum with a WAULT of approximately Offers of £7,130,000 (Seven Million, One Hundred and Thirty
9.5 years to the break option. Thousand Pounds Sterling) subject to contract and exclusive of
VAT are sought for the Absolute Ownership (Scottish equivalent
The park has attracted a strong tenant line up of B&Q, Argos and of English Freehold) in the property.
B&M Bargains.
This represents an attractive net initial yield of 6.90%, after
Rents on the park are affordable with B&Q having 5 yearly RPI allowing for purchaser’s costs of 6.16% based on Scotland’s
rent reviews. Land and Buildings Transaction Tax (LBTT).
Location Demographics
Located in East Fife, Leven is 14 miles from St Andrews The town of Leven has a population of 8,850 people,
and 37 miles from Edinburgh. Leven is the dominant while the Levenmouth area has a total population of
town providing the principal retail provision for the 38,173 people. Levenmouth has been categorised for
Levenmouoth area, which encapsulates the towns of significant expansion, with 1,650 new homes allocated for
Leven, Methil and Buckhaven. the area in the Strategic Development Plan for Edinburgh
and South East Fife.
The Fife area is a popular location for commuters to
A9
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Edinburgh. From Leven the A915/A92 provides access A938
to the national motorway network and the M90, which A9
leads directly to Edinburgh. There are also proposals to
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A887 A90
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reintroduce the Levenmouth rail link, which Fife Council
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Aberdeen
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are supporting, and this would further enhance the
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appeal of the area. At present the nearest train station is A93 A90
in Kirkcaldy. A86
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A957
The main employers within the conurbation are Diageo, A92
whoS haveCrecently
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bottling facility, and Energy Park Fife where over 900
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people are employed in the renewable energy sector.
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A82 A90
A92
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Dundee
A9
A85
A85
A85 Perth
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St Andrews
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A915
M90
A821
A84
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A823 Leven
16
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A873
11
Glenrothes
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Stirling
15
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M9 A907 Kirkcaldy
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Dunfermline
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Falkirk
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Clydebank Glasgow Livingstone
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Coatbridge
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Motherwell A71
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Hamilton Wishaw Berwick-upon-Tweed
East
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Kilbride
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Riverside Retail Park, Leven
Situation
The subject property is situated on Riverside Road
(B933) between the junctions of Aitken Street and
Hawkslaw Road, less than half a mile south west of
Leven town centre. Sainsbury’s and Home Bargains
are situated adjacent to the retail park.
A915 KI
RKCALD
Y / BEDI
NBURGH
RIVERSIDE
RETAIL PARK
S
PF
Town Centre Occupiers
S
RY
BU
INS
SA
Description Tenancy
The park was developed in 2004 and comprises a terrace The property is multi-let with a current net income of £521,987 per annum.
of 3 retail units extending to 50,539 sq ft (4,695.20 sq m).
The park benefits from 201 car parking spaces to the
front, with a secure service yard to the rear. Unit 1, Unit Tenant Lease Start Lease Expiry Rent Review Break Option Rent (PA)
which is let to B&Q, has a garden centre to the north.
1 B & Q Plc 04/02/2005 04/02/2030 30/08/2020 * - £240,987
Within the car park there is a mobile food van
2 Argos Limited 04/02/2005 04/02/2020 04/02/2015 - £90,000
and a clothing recycling pod which provide the
commercialisation income. 3/4 B & M Retail Limited 21/10/2011 20/10/2026 21/10/2016 21/10/2021 (T) £175,000
Commercialisation M & D Catering £6,000
Accomodation Commercialisation Terncove Limited £10,000
The ground floor of the subject property has been Total £521,987
measured on a gross internal area (GIA) basis in
accordance with the RICS Code of Measuring Practice *The rent is reviewed 5 yearly, to RPI with a cap and collar of 3% and 0%, compounded annually.
(6th Edition), and the approximate areas are as follows:
Tenant sq ft sq m
B&Q (Unit 1) 24,996 2,322.21
Argos (Unit 2)* 9,073 842.91
B&M (Unit 3/4) 16,470 1,530.08
Total 50,539 4,695.20
*There is a tenant’s mezzanine extending to 2,969 sq ft
(275.82 sq m), which is not rentalised.
Riverside Retail Park, Leven
Covenant
B&Q Argos B&M Retail
B&Q PLC (Company Number: 00973387) has an ARGOS LIMITED (Company Number: 01081551) has an B&M RETAIL LIMITED (Company Number: 01357507)
Experian score of 100 which provides a Very Low Risk. Experian score of 100 which provides a Very Low Risk. has an Experian score of 92 which provides a Very
Low Risk.
Part of the Kingfisher PLC group, B&Q are the UK’s Argos is a British catalogue retailer operating in the UK
leading DIY and garden centre retailer with 360 stores and Ireland. With 737 stores and 340 million website B&M was formed in 1978 and is now one of the leading
and over 20,000 employees. visits a year, it is one of the largest high street retailers in variety retailers in the United Kingdom, employing over
the United Kingdom. 20,000 staff across 450 stores. They are also listed on
the London Stock Exchange.
28th January 2nd February 1st February 3rd March 2nd March 1st March 31st Dec 2011 31st Dec 2012 31st March
Year Ending Year Ending Year Ending
2012 (000s) 2013 (000s) 2014 (000s) 2012 (000s) 2013 (000s) 2014 (000s) (000s) (000s) 2014 (000s)
Turnover £3,710,400 £3,637,900 £3,589,500 Turnover £3,749,910 £3,752,634 £3,872,446 Turnover £712,572 £935,229 £1,509,132
Pre-Tax Profit £203,300 -£44,100 £138,600 Pre-Tax Profit £17,035 £84,662 £43,992 Pre-Tax Profit £51,702 £88,323 £123,398
Total Net Worth 4,368,500 £4,305,500 £4,385,900 Total Net Worth £1,170,118 £1,249,775 £1,172,054 Total Net Worth £105,539 £171,867 £281,228
Tenure Energy Performance Certificate Development Potential
Absolute Ownership (Scottish equivalent of English The energy perfromance rating for each unit is set There is potential to add value through developing a
Freehold). out below: restaurant pod on the site, subject to planning. Indicative
plans are available on request.
Planning Unit EPC Rating CO2 Emissions
VAT
The property benefits from Open Class 1 (Non Food) 1 D 60
planning consent. Full planning permission was granted The property has been elected for VAT and therefore
in December 2003 for the erection of Non-Food retail 2 D 10
60 VAT will be payable on the purchase price. However it is
units including a garden centre, mezzanine office, service anticipated that the sale will be treated as a Transfer of A
3/4 F 92
yard, car parking and associated landscaping. Going Concern (TOGC).
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Proposal Offers of £7,130,000 (Seven Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English Freehold) in the property. This represents an attractive net initial yield of 6.90%, after allowing for purchaser’s costs of 6.16% based on Scotland’s Land and Buildings Transaction Tax (LBTT). For further information please contact: Sarah Stewart T: +44 (0)131 226 8736 E: sarah.stewart@cushwake.com Stephen Bibby T: +44 (0)131 226 8738 E: stephen.bibby@cushwake.com Natasha Ross T: +44 (0) 131 226 8735 E: natasha.ross@cushwake.com Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG MISREPRESENTATION ACT Cushman & 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: 1/ The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2/ No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3/ The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4/ 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. 5/ 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 if required. September 2015
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