LONG LET ALDI SUPERMARKET INVESTMENT GLASGOW. Aldi, High Street, Glasgow, G1 1QF

Transcription

1 LONG LET ALDI SUPERMARKET INVESTMENT Aldi, High Street, Glasgow, G1 1QF

2 INVESTMENT CONSIDERATIONS Attractive city centre foodstore investment Glasgow is the economic, cultural, sporting and academic heart of Scotland with 40% of Scotland s population living within the wider Glasgow conurbation Let to the excellent covenant of Aldi Stores Ltd (Dun & Bradstreet rating of 5A1) with a further 8.75 years on the lease Situated in a thriving student area with a further 727 homes planned for the site behind the subject property Busy supermarket with highest number of customers per week across all Scotland s Aldi stores during university term time The unit comprises a total of 1,301.5 sq m (14,009 sq ft) of modern, well configured floor space Current passing rent of 291,141 per annum ( psf) Guaranteed rental uplift at rent review to the higher of open market rental value or the rent annually compounded 2.5% per annum with a minimal rent uplift to 329,400 per annum in 2022 Heritable Interest (Scottish Equivalent of English Freehold) Offers are sought in excess of 4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.86% and a reversionary yield of 7.77% after allowing for purchaser s costs of 6.05%

3 BUCHANAN GALLERIES SHOPPING CENTRE QUEEN STREET CITY CHAMBERS STRATHCLYDE CITY OF HIGH UNIVERSITY STREET COLLEGE NEW MOXY NEW HOTEL COLLEGELANDS STUDENT DEVELOPMENT T REE ST NAN HA BUC MERCHANT CITY ET TRE HS HIG MERCHANT CITY CLOCK TOWER ANDREW URE STUDENT HALLS UNITE STUDENT HALLS GET LIVING DEVELOPMENT SCHEME

4 PERTH DUNDEE ST ANDREWS LOCATION STIRLING M90 M9 M80 M8 M77 KILMARNOCK M74 A702 EDINBURGH A68 A7 A72 BERWICK-UPON-TWEED Glasgow is the largest city in Scotland with a resident population of approximately 610,000 people and a wider regional catchment population of 2.5 million. The city forms the principal commercial area in the central belt and west coast of Scotland with key employment sectors including; industrial & retail, banking, financial services, public administration and tourism. AYR A75 DUMFRIES M74 A7 A68 A69 A1 NEWCASTLE UPON TYNE The City benefits from excellent transport communications with the M8 motorway providing access to the national motorway networks via the M74 and M77. The City has two main railway stations which link Glasgow to other key cities across the United Kingdom. Glasgow International Airport is located 9 miles to the west of the city centre, accommodating 30 airlines and providing regular domestic, European and transatlantic flights. Over 2 billion has been invested into improving the city s infrastructure across the last 10 years. A major driver for this was Glasgow hosting the Commonwealth Games in 2014, which resulted in the regeneration of major areas within the city and the creation of over 1,000 jobs. Glasgow is a major university city with five higher education Universities in the city and a further 13 colleges in the wider area. The city maintains a robust skills pipeline and a talented workforce with over 130,000 students from over 135 countries. The City has a graduate level workforce above almost all major UK cities, with 43.6% of the workforce educated to degree level.

5 BUCHANAN GALLERIES SHOPPING CENTRE BUCHANAN STREET QUEEN STREET GEORGE SQUARE CITY CHAMBERS CATHEDRAL STREET CITY OF COLLEGE STRATHCLYDE UNIVERSITY CATHEDRAL STRATHCLYDE UNIVERSITY NECROPOLIS 15.2m SHUTTLE STREET SHUTTLE STREET 6 COLLEGE STREET INGRAM STREET COLLEGE STREET 161 NICHOLAS STREET HIGH STREET 140 to 128 Shelter m Posts CR 6 Shelter 215 PH 4 Site of Battle AD 1300 Site of University AD CR 223 to 229 Burgh Const & Ward Bdy A8 HIGH STREET HIGH STREET Street High P Const Bdy Burgh Const Bdy 220 Hotel CENTRAL Metres ARGYLE STREET TRONGATE GEORGE STREET DUKE STREET INGRAM STREET MERCHANT CITY HIGH STREET ANDREW URE STUDENT HALLS MERCHANT CITY CLOCK TOWER UNITE STUDENT HALLS HIGH STREET COLLEGELANDS DEVELOPMENT GET LIVING DEVELOPMENT SCHEME BLACKFRIARS STREET Contains public sector information licensed under the Open Government Licence v m P Const Bdy Andrew Ure Hall TCB A8 HIGH STREET ANDREW URE STUDENT HALLS of Residence (University of Strathclyde) 0m 10m 20m 30m Metres PARSONAGE ROW 2 BLACKFRIARS ROAD BLACKFRIARS ROAD UNITE STUDENT HALLS 8 7 El Sub Sta 6 Blackfriars Chapel PARSONAGE SQUARE 4 5 (site of) PARSONAGE SQUARE 6 El Sub Sta El Sub Sta Ordnance Crown Survey copyright Crown Copyright and database All rights right reserved All rights reserved. Ordnance Survey Licence number Licence number Plotted Scale - 1:1250 SITUATION The property occupies a prominent position on the east side of Glasgow High Street at its junction with Blackfriars Road and adjacent to High Street Railway Station. The property is within close proximity to the University of Strathclyde campus and there are numerous halls of residence within the immediate catchment area including the Blackfriars Unite Student scheme (520 beds), Andrew Ure Hall (300 beds), Collegelands (588 beds) all within a 2 minute walk. The 7.5 acre site to the rear of the property has been purchased by Get Living (backed by Delancey and Oxford Properties) which plans to invest 200 million through building 727 build to rent homes alongside a further 99 student studios and a new public square. The property is on the fringe of vibrant Merchant City quarter which is home to numerous bars, restaurants, boutiques and galleries.

6 DESCRIPTION The property comprises a large, well configured foodstore arranged over ground floor only. The unit was constructed in 2007 and benefits from extensive frontage on to the High Street. The supermarket forms the ground floor of two residential blocks (comprising a total of 149 flats) which are both accessed via Blackfriars Road. Deliveries are taken to the rear of the property accessed by Blackfriars Road. The property provides a Gross Internal Area (GIA) of 1,301.5 sq m (14,009 sq ft). TENANCY The property is let to Aldi Stores Ltd on a 20 year full repairing and insuring lease commencing 1st June 2007 expiring in The current rent passing is 291,141 per annum equating to psf overall. The rent is reviewed every five years to the higher of the annual rent payable prior to the date of review, the open market rent or the compounded rent (equivalent to the existing rent increased annually and compounded by 2.5% per annum for a period of 5 years prior to the review date). The tenant has the right to extend the original term to 35 years. TENURE Heritable (Scottish Equivalent of English Freehold)

7 COVENANT INFORMATION Aldi Stores Limited is now the UK s 5th largest supermarket having more than doubled its UK market share to 7.6% since Aldi s sales increased by 15.1% in the last quarter compared with the same quarter last year. The company currently trades from over 700 stores in the UK and is aiming to have over 1,000 by Aldi has over 10,000 stores in 18 countries throughout Europe and the United States. Aldi Stores Limited is rated 5A1 by Dun and Bradstreet which represents a minimum risk of business failure. The business produced the following headline accounts over the last 3 years: 31/12/ /12/ /12/2015 Sales Turnover 10,181,049,000 8,744,385,000 7,705,140,000 Profit Before Taxes 220,877, ,795, ,621,000 Total Net Worth 2,515,973,000 2,321,983,000 2,073,988,000

8 SERVICE CHARGE Full information is available in the dataroom. EPC The EPC rating is B. The EPC is available in the dataroom. VAT We understand the property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of Going Concern (TOGC). DATAROOM For access to the Allsop Dataroom please use the following link: register/glasgowaldi PROPOSAL Offers are sought in excess of 4,000,000 (Four Million Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.86% after allowing for purchaser s costs of 6.05% For further information or to make arrangements for viewing please contact: Jonathan Butcher Jonathan.butcher@allsop.co.uk Alex Butler Alex.butler@allsop.co.uk