STERLING FURNITURE AND SCS - BIRKENSHAW TRADING ESTATE, GLASGOW, G71 5PR - HIGH YIELDING RETAIL WAREHOUSE INVESTMENT OPPORTUNITY - Staunton Whiteman
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STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR STERLING FURNITURE AND SCS B I R K E N S H A W T R A D I N G E S TAT E , G L A S G O W, G 7 1 5 P R H I G H Y I E L D I N G R E TA I L W A R E H O U S E I N V E S T M E N T O P P O R T U N I T Y1
STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR 2
STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
INVESTMENT SUMMARY
Glasgow is the largest city in Scotland and the third largest city in the UK, with a population of 596,550 The property has Open Class 1 (non-food) planning consent. This planning permission contains no
and a catchment of 2.3 million. restrictions upon either the subdivision of the units or the installation of mezzanine floors.
Birkenshaw Trading Estate is strategically located 5 miles south east of the city centre at the The property is let to Sterling Furniture Group Ltd and A Share & Sons Ltd (t/a ScS) at rents of
intersection of the M8, M73 and M74 motorways. £12.35 psf and £13.00 psf respectively, producing a total income of £264,079 pa.
There are a total of 16,792 people living within a 5 minute drive-time of the subject property, 207,762 Sterling Furniture have been in occupation of the property since October 1994 and it is considered
within 10 minutes and 626,914 within 15 minutes. The local population is relatively affluent with very likely that they will wish to renew their lease at expiry on 12 October 2019. Alternatively, as there
60.1% falling within the top three Acorn demographic categories (Affluent Achievers, Rising Prosperity are no renewal rights under Scottish Law, the combined unit could be divided and relet as two smaller
and Comfortable Communities), significantly in excess of the national average (50.1%). units.
The subject property is located at the western entrance to Birkenshaw Trading Estate, with excellent The lease to ScS was extended in 2015 and now runs until 13 October 2025, with a rent review
prominence to Rannoch Road. Adjacent retailers include Currys, PC World, Harveys, Bensons for Beds, effective 13 October 2019.
Carpetright, Dunelm, Wren, Oak Furnitureland, Poundstretcher, Tapi and B&M.
Our clients are seeking offers in excess of £2.93 million for the benefit of their heritable interest in the
The property comprises two purpose built retail warehouses of 13,399 sq ft and 7,583 sq ft. Both property. A purchase at this level will show a yield of 8.5%, net of purchaser’s costs of 5.97%.
of the units have large trading mezzanine floors. There are a total of 93 customer car parking spaces
(1:226 sq ft) and 25 staff parking spaces, giving a generous overall parking ratio of 1:178 sq ft.
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STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
LOCATION Bearsden
Glasgow is Scotland’s largest city and the UK’s third largest city, with a population of 596,550 A80
(2013). The wider catchment from the Greater Glasgow conurbation is 2.3 million, accounting for
more than 40% of Scotland’s population. A803
A82 Stepps
GLASGOW A80
INTERNATIONAL A739
With more than 5 million sq ft of retail floorspace, Glasgow is the UK’s largest and most successful AIRPORT M73
J13/1
shopping destination outside of London. The city is ranked second in CACI’s UK Retail Ranking J26
A814 M8
(2013). M8
J25
GLASGOW A8
J8/2
Coatbridge Airdrie
J24 J22 J1 A89
Glasgow is in the Top 40 of the world’s financial centres (Global Financial Services Index 2012). J1A
A74
M8 Chapelhall
Some 13,000 firms are present in the city and Glasgow is Scotland’s largest economy. M77
J1 J2
J2A BIRKENSHAW
J7
J6
M74 J4/1 Birkenshaw M8
A730
In 2014, Glasgow hosted the Commonwealth Games which further enhanced the £8 billion of capital A77
Newhouse
J2 A775
investment the city has seen since 2011, and included the construction of landmark buildings such Uddingston
Bellshill
Cambuslang
M74
as the £100m Emirates Arena, SSE Hydro and Sir Chris Hoy Velodrome. This led to the regeneration
Thorniebank
of large areas of the city and the creation of over 1,000 jobs. J3 A749 A724 J5
Carmunnock A73
M77 Motherwell
Glasgow is home to over 130,000 further and higher education students with four universities and
A725
thirteen colleges across the city. Newton J6
Mearns A726 Hamilton Wishaw
COMMUNICATIONS East
Kilbride
J7
Glasgow benefits from excellent transport infrastructure with strong road, rail and air links
providing connectivity across the city, the region and beyond.
Road - The main motorway in Scotland, the M8, runs through the heart of Glasgow, linking
with Edinburgh to the east and Glasgow International Airport to the west. The M8 provides
access to the surrounding motorway network, to the north via the M80 and to the south via
the recently extended M74/M6 and the M77.
Rail - Glasgow’s two largest stations, Glasgow Central and Glasgow Queen Street, connect
the city with all the major Scottish and English cities. London can be reached by a direct
service in approximately four hours and there are regular services connecting with
Edinburgh, taking less than an hour.
Air - Glasgow International Airport operates approximately 200 flights daily and is situated
15 minutes west of the city centre. It has 30 airlines serving approximately 110 destinations
worldwide. A reported 7.7 million passengers pass through Glasgow airport annually, which
has recently seen £60 million of investment.
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STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
BIRKENSHAW
Dr
ain
Birkenshaw is strategically located 5 miles south east of Glasgow city centre, by the
intersection of the M8, M73 and M74 motorways. As such, the Birkenshaw Trading Estate is
highly accessible to shoppers with a total of 16,792 people living within a 5 minute drive-time
of the subject property, 207,762 within 10 minutes and 626,914 within 15 minutes.
The local population is relatively affluent with 60.1% falling within the top three Acorn
demographic categories (Affluent Achievers, Rising Prosperity and Comfortable Communities),
significantly in excess of the national average (50.1%).
SUBJECT PROPERTY
SITUATION
The subject property is located in a prominent position at the entrance to the Birkenshaw
Trading Estate, fronting Rannoch Road.
Birkenshaw Trading Estate is one of the UK’s oldest retail warehouse pitches and has always
attracted very strong levels of trade. Other retailers on the estate include Currys, PC World,
Harveys, Bensons for Beds, Carpetright, Dunelm, Wren, Oak Furnitureland, Poundstretcher,
Tapi and B&M. t
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STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
SITE TENURE
The site is level and broadly rectangular in shape, extending to some 1.83 acres (0.74 hectares). Our client owns the heritable interest in the property (the Scottish equivalent of a freehold).
PLANNING
DESCRIPTION The property was granted planning permission for the construction of 3 retail units on
2 March 1994. This planning permission grants consent for Open Class 1 (non-food) use
The subject property was designed and built as three retail warehouses with a large
(the Scottish equivalent of Open A1 non-food use).
customer car park to the front and a separate secure service yard to the rear. Units A and
B were combined and the property has the following approximate floor areas:
The planning permission contains no restrictions upon the subdivision of the units and no
Unit Tenant Ground Fl (sq ft) Mezzanine (sq ft) restrictions upon the installation of mezzanine floors.
A/B Sterling Furniture 13,399 8,112
C
Total
ScS 7,583
20,982
6,688
14,800 EPC
There are a total of 93 customer car parking spaces (1:226 sq ft), together with a further 25 Copies of the energy performance certificates (EPC’s) are available upon request.
staff spaces to the rear of the building, giving a generous overall car parking ratio of 1:178 sq ft.
6
STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
TENANCIES INCOME SECURITY
The property is let to Sterling Furniture and ScS as follows: Sterling Furniture
Sterling are the UK’s largest independent furniture store having been trading for over
Size Rent Rent
Unit Tenant Comments 35 years. The company has 9 stores across Scotland in Edinburgh, Glasgow, Dundee,
(sq ft) (pa) (psf)
Inverness, Aberdeen, Falkirk and Tillicoutry, as well as a strong online presence.
Sterling Furniture 25 year lease from 13 Oct 1994,
A/B 13,399 £165,500 £12.35 Sterling Furniture Group Ltd have a Dun & Bradstreet rating of 4A 1, representing a
Group Ltd expiring on 12 Oct 2019.
‘minimum risk of business failure’. A summary of their most recent accounts is as follows:
25 year lease from 13 Oct 1994.
A Share & Sons Latest Turnover Pre-Tax Profits Net Worth
C 7,583 £98,579 £13.00 Lease extended to 13 Oct 2025. Company
Ltd (t/a ScS) Accounts (000’s) (000’s) (000’s)
Next rent review on 13 Oct 2019.
Total 20,982 £264,079 29/02/2016 53,190 2,488 21,292
Sterling Furniture
28/02/2015 50,083 2,057 19,705
Group Ltd
Sterling Furniture have been in continuous occupation of the property since the lease 28/02/2014 44,891 808 18,096
commencement over 22 years ago and it is considered very likely that they will wish to
renew their lease in October 2019. Alternatively, as there are no renewal rights under
ScS
Scottish Law, the combined unit could be divided and relet as two smaller units.
ScS was founded in Sunderland in 1894 and the company now has over 100 stores in the
ScS took an assignment of their lease from Roseby’s in March 2005 and they have been in
UK, employing 1,400 people.
occupation of the unit for 12 years. This lease was extended on 6 October 2015 and now
runs to 13 October 2025.
The company, A Share & Sons Ltd, have a Dun & Bradstreet rating of 5A 2, representing a
‘lower than average risk of business failure’. A summary of their most recent accounts is
RETAIL WAREHOUSING IN BIRKENSHAW as follows:
Latest Turnover Pre-Tax Profits Net Worth
Retail warehousing around Birkenshaw is focussed on the Birkenshaw Trading Estate Company
Accounts (000’s) (000’s) (000’s)
which is one of the oldest and most established retail warehouse destinations in the
country, with very strong levels of trade. As a result, there are no vacant retail warehouses 30/07/2016 317,305 11,736 35,281
upon the estate. A. Share & Sons
25/07/2015 276,734 4,092 37,538
Ltd
Retailers who have recently moved to Birkenshaw Trading Estate include Wren Living 26/07/2014 258,206 5,000 25,089
(who purchased the heritable interest in their block which is being refurbished), Harveys/
Bensons (who purchased their heritable interest) and Tapi Carpets who took a new lease Copies of the Dun & Bradstreet reports for the tenants are available upon request.
upon 5,073 sq ft in August 2015 at a rent of £14.50 per sq ft.
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STERLING FURNITURE AND SCS, BIRKENSHAW TRADING ESTATE , GLASGOW, G71 5PR
PURCHASE PRICE
Our clients are seeking offers in excess of £2,930,000 (Two Million Nine Hunderd and Thirty Thousand Pounds), subject to the
conclusion of missives, for the benefit of their heritable interest in the property. A purchase at this level will show an attractive
initial yield of 8.5%, after allowing for purchaser’s costs of 5.97%.
FURTHER INFORMATION Staunton Whiteman LLP
9-10 Savile Row
Should you require any further information on the property or wish to arrange an inspection, please do not hesitate to contact: London
W1S 3PF
020 7287 2228
Nick Staunton Hamish Whiteman
020 7287 2228 020 7287 2228
nick@stauntonwhiteman.co.uk hamish@stauntonwhiteman.co.uk
MISREPRESENTATION ACT 1967 AND DECLARATION
Messrs Staunton Whiteman LLP for themselves and for the vendors of this property whose agents they are, give notice that:
i) the particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract:
ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and
must satisfy themselves by inspection or otherwise as to the correctness of each of them:
iii) no person in the employment of Staunton Whiteman LLP has any authority to make or give any representation or warranty in relation to this property.
Brochure by: Adrian Gates Design 07710 316 991
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