West Retail Park - Prime Long Income Retail Warehouse Investment Opportunity - KLM Retail
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West Retail Park 1
West Retail Park
Birkenshaw Trading Estate, Rannoch Road,
Uddingston, Glasgow, G71 5PR
Prime Long Income
Retail Warehouse Investment Opportunity
West Retail Park 2
Investment Summary
> Birkenshaw Trading Estate is a well-
established retailing location with
approximately 275,000 sq ft of retail
warehousing, located approximately 10 miles
(16 km) east of Glasgow city centre.
> Easily accessible location with excellent
communication links.
> West Retail Park is prominently situated and
forms part of a significant critical mass of
retailing.
> The property comprises 35,146 sq. ft. of retail
warehouse accommodation on a site of
2.9 acres.
> 163 dedicated car parking spaces, including
9 accessible spaces, providing a ratio of
1:216 sq. ft.
> Restricted Class 1 planning permission
(excluding sale of food, clothing, shoes
and sports goods).
> Fully let to Wren Kitchens Limited, Pagazzi
Lighting Limited and Dreams Limited.
> Total income of £480,827 per annum
inclusive of top-ups.
> Weighted average unexpired lease term of 7.1
years.
> Asset management opportunities.
> Heritable interest (Scottish equivalent of
English Freehold).
> We are instructed to seek offers in excess
of £5,490,000 subject to contract and
exclusive of VAT. A purchase at this price will
reflect a net initial yield of 8.25% allowing
for purchaser’s costs at 6.12%.
Inverness
West Retail Park 3
Aberdeen
M90
A9
Location A83
Dundee
A84
Glasgow
558,000
A92
Birkenshaw Trading Estate is situated M8 M90
A1
approximately 10 miles (16km) east of Edinburgh
Glasgow city centre and 2 miles (3km) north M74
Stirling People living within a 20
of Uddingston town centre. Benefiting from A811
minute drive time
A82 M9
excellent communication links, it is located Dunfermline
M9
between Junction 7A and Junction 8 of the
Carlisle M80
74%
recently upgraded M8 which connects Glasgow Newcastle M876
and Edinburgh. Junction 4 of the M74 is close
Falkirk
by and provides good access from the north M9
M6 A90
and south. M80
A8
Cumbernauld Population within catchment
Due to the highly accessible location York Edinburgh which are economically active
A82 M80
Birkenshaw Trading Estate, and West Retail Hull
M73
Livingston A720
Leeds M8
Park, has a wide catchment area. Within a 20 A78 M8
26%
M8
minute drive time there are approximately Liverpool M62 A71
257,000 households and a population of Glasgow M74 M8
558,000 and approximately 42,000 households A737 Manchester Motherwell
A701
and 93,000 people within a 10 minute drive Hamilton
M6 A725 A702 Estimated growth in bulky
time. 74% of the catchment population are M1 goods spend within catchment
M77 A1 A73
economically active. (from 2016 - 2021)
Birmingham A721 A703
M6 M74
A70
Cambridge
M5
Irvine Kilmarnock A72Catchment
A71
Felixstowe
Cardiff 10 minutes
M4
A77 West Retail
M25 Park - highly
London Gateway A702
20 minutes
M4
Bristol
A76 accessible
London with a wide
M3 M20
A77
M5
catchment area
Southampton
Exeter Portsmouth
M73 A8/M8
J19
West Retail Park M73
4
A752
Ra
nn o
Situation ch
R oad Kil
mu
ir R
BIRKENSHAW oa
TRADING ESTATE d
West Retail Park is prominently situated within Birkenshaw Glasgow
Trading Estate at the east end of Rannoch Road at the A74 Ol
junction with Kilmuir Road. d Ed
ad
inb
Ro
urg
Extending west of the subject property, the trading estate hR
d
oa
ea
d
provides approximately 275,000 sq. ft. of retail warehousing
h
J4
en
accommodation. A well-established out of town retail
A ik
location with a large catchment, Birkenshaw attracts strong TANNOCHSIDE
levels of trade. Other occupiers include Sterling Furniture,
SCS, Currys & PC World, B&M, Tapi, Carpetright, Oak Old
Furnitureland and Dunelm. Ed
inb
urg
hR
The surrounding area directly to the east of the West Retail oa
d
Park and south of the Birkenshaw Trading Estate is primarily M74
New
residential with office and industrial uses further afield. Edin
burg
h Ro
ad
A721
Rannoch Road
Rannoch Road
oak depot
Birkenshaw Trading Estate
West Retail Park 5
Description
The property comprises a terrace of three units,
prominently situated on Rannoch Road at the
east entrance to Birkenshaw Trading Estate.
Extending to 35,146 sq. ft. Units 1 and 2 were
redeveloped in 2017. Both units were extended,
re-clad and benefit from new full width glazed
frontages. The car park has been re-laid and an
improved layout implemented.
The landscaped site also accommodates 163
dedicated car parking spaces, a ratio of 1:216 sq.
ft., including 9 accessible spaces.
Accommodation
The property provides the following Gross
Internal Areas:
Gross Gross
Unit Internal Internal
Area (sq m) Area (sq ft)
1 - Wren
1,408.73 15,163
Kitchens Limited
2 - Pagazzi
950.92 10,236
Lighting Limited
3 - Dreams
905.50 9,747
Limited EXTENSION EXTENSION
TOTAL 3,265.15 35,146
Site
The total site area is 2.9 acres (1.18 hectares)
which equates to a low site cover of
approximately 28%.
For indicative purposes only
West Retail Park 6
Tenancy
The three units are fully let with a total rent of £480,827 per annum. The letting profile provides income security with a weighted average unexpired lease term (WAULT) of 7.1 years to expiry.
The units are let with 5 yearly upwards only rent reviews to the following tenants on effective full repairing and insuring terms:
Ground Floor Topped Up Rent Rent
Unit Tenant Lease Start Next review Lease Expiry Comments
Area (sq ft) (per annum) (per sq. ft.)
Initial rent of £109,500 for the first 2 years and £219,000 thereafter
1 Wren Kitchens Limited 15,163 07/08/2017 07/08/2022 06/08/2027 £219,000 £14.44
until reviewed. Rent will be topped up to £219,000.
Pagazzi Lighting Initial rent of £146,827. Rent reduction for the first 12 months of the
2 10,236 27/10/2017 27/10/2022 31/07/2027 £146,827 £14.34
Limited lease to £73,414. Rent will be topped up to £146,827.
3 Dreams Limited 9,875* 28/11/2005 11/12/2018 27/11/2020 £115,000 £11.65
TOTAL 35,274 £480,827
* Area stated in lease
Tenant’s Covenant Information
The property benefits from financially robust occupiers.
Tenant Company Number Covenant Strength Year Ended Sales Turnover Profit (Loss) before tax Tangible Net Worth
Wren Kitchens Limited 06799478 2A 2 31 Dec 2016 £338,093,520 £11,007,372 £6,153,002
Pagazzi Lighting Limited SC232732 1A 2 31 Mar 2017 £7,079,856 £182,337 £719,367
Dreams Limited 8428347 3A 2 24 Dec 2016 £269,544,000 £31,430,000 £8,587,000
Income Profile Income Profile
by Tenant by Term Certain 76%
Dreams < 3 years
24% 24%
Wren Kitchens of income secured for
46%
in excess of 9 years
> 9 years
Pagazzi 76%
30%
West Retail Park 7
Planning Service Charge Tenure
Planning permission (16/01451/FUL) was granted in September The service charge runs from 01/01/2018 – 31/12/2018 and Heritable (Scottish equivalent to English Freehold).
2016 for the redevelopment of existing retail units. Further detail the current annual budget is £46,247 which equates to
of the planning permission is available from North Lanarkshire
Council. We have been informed the use of the premises is for
approximately £1.32 psf. VAT
a use included within Class 1 of the Town and Country Planning
(Use Classes) (Scotland) Order 1997, other than for the sale of EPC Ratings The property is elected for VAT and it is anticipated that the
investment sale will be treated as a Transfer of Going Concern
food, clothing, shoes and sports goods.
(TOGC).
The property has the following EPC ratings:
Asset Management > Unit 1 – D(57)
Capital Allowances
> Unit 2 – D(57)
Further asset management opportunities include the re-gear
> Unit 3 – E(78) No capital allowances are available.
of the Dreams lease and the re-cladding of Unit 3.
All units are equivalent to a B rating in England and Wales.
Copies of the EPC certificates are available on request. Collateral Warranties
Collateral warranties will be provided for redevelopment works.
West Retail Park 8
Proposal
Our client is seeking offers in excess of
£5,490,000 (five million four hundred and
ninety thousand pounds) subject to contract
Our client is seeking offers in excess of and exclusive of VAT. Assuming purchaser’s
£5,490,000 (five million four hundred costs of 6.13%, a purchase at this price will
reflect a net initial yield of 8.25%.
and ninety thousand pounds)
Contacts
For further information and access to the data
room please contact:
Jonathan Perkins
+44 (0)20 7317 3744
jperkins@klmretail.com
Will Andrews
+44 (0)20 7317 3741
wandrews@klmretail.com
MISREPRESENTATION ACT:
KLM Retail LLP and KLM Out of Town Retail & Leisure Ltd, for themselves and for the
vendors of this property, whose agents they are, give notice that
(i) the particulars and any further information communicated by any means to
potential purchasers of the property described in the particulars, or their advisers, in
connection with the possible sale of the property are provided solely for the purpose
of assisting potential purchasers in deciding whether they wish to proceed with
further investigation of the property and do not constitute either the whole or any
part of an invitation, offer or contract for sale of the property;
(ii) all descriptions, dimensions, references to condition and necessary permissions
for use and occupation and other details are given in good faith and are believed to
be correct as at the date of the particulars (or the date of the relevant information if
earlier). However, potential purchasers are not entitled to rely on them as statements
or representations of fact but should satisfy themselves by searches, enquiries,
surveys and inspections or otherwise with regard to the accuracy of such details.
No responsibility or liability is or will be accepted by KLM Retail LLP and KLM Out
of Town Retail & Leisure Ltd, the vendor(s) of the property or any of their respective
subsidiaries, affiliates, directors, officers, representatives, employees, advisors, or
agents for any loss or damage suffered by any party, resulting from reliance on the
particulars or any other information communicated by any means to that party,
or its advisers, in connection with the possible sale of the property. No person in
the employment of KLM Retail LLP, KLM Out of Town Retail & Leisure Ltd or the
vendor(s) has authority to make or give any representation or warranty, express or
implied, in relation to the property. References to KLM Retail and KLM Out of Town
Retail Ltd include any joint agents acting with KLM Retail LLP and KLM Out of Town
Retail & Leisure Ltd. September 2018.
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