FOR SALE Well Let Retail Investment In Affluent Scottish Suburb 191 & 193 Brook Street, Broughty Ferry DD5 2AG Offers over 545,000 (6.50% NIY) Sheridan Property Consultants
Executive summary: Let to TCTT Retail Limited (t/a Thomas Cook) and Trustees of Thomas Keay and Sons (t/a Rough & Fraser Bakers) Total passing rent of 37,000 per annum Both tenants have recently extended their leases at their respective properties showing their commitment to the location Strong tenant demand for Brook Street which is evident by the limited vacancies on the street Situated on the prime retailing street of Broughty Ferry Broughty Ferry is an affluent suburb on the periphery of Dundee We are instructed to seek offers in excess of 545,000 (FIVE HUNDRED AND FORTY FIVE THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive Net Initial Yield of 6.50%, based on standard purchaser s costs and LBTT at 4.51%. 191-193 BROOK STREET, BROUGHTY FERRY DD5 2AG P1
Location: Broughty Ferry is an affluent district of Dundee, approximately 4 miles east of Dundee city centre. Dundee is situated on the east coast of Scotland midway between Aberdeen and Edinburgh and has a resident population of 155,000 persons and a catchment of some 235,000 persons. Dundee is Scotland s fourth largest City and is the Regional Centre for employment services and retailing. The prime retailing thoroughfare is Brook Street with the prime pitch being between Gray Street to the East and Fort Street to the West. Situation: The subject premises occupy a prominent corner location in the centre of the prime retail pitch on the north side of Brook Street. There are a number of national retailers and local traders that are present on Brook Street; national retailers in the vicinity of the subject property include Cafe Nero, Boots, Costa, Subway, TSB Bank and Tesco Express. 191 & 193 Brook Street Broughty Ferry DD5 2AG 191-193 BROOK STREET, BROUGHTY FERRY DD5 2AG P2
Description: The subject property comprises two retail units arranged over ground floor within a single story underneath a pitched roof. Both of the units within the subject of which offer regular shaped retailing premises with glazed frontages with 191 Brook Street benefitting from return frontage. Internally, both properties have been fitted out in the corporate style of the tenants, Thomas Cook and Rough & Fraser. Development Land: There is a potential development site to the rear of the subject that is included in the sale; an indicative plan is shown in the plan above. Subject to obtaining the correct consents, it is our view that the subject property presents a fantastic opportunity to re-develop the buildings and the land at the rear at lease expiries to provide a larger foot print. Previously, there has been interest in the subject property and site from national restaurant operators. Any development of the land would have to take into account the rights of numbers 195, 197 and 199 Brook Street that pertain over part of the land. Further information can be provided on request. 191-193 BROOK STREET, BROUGHTY FERRY DD5 2AG P3
Accommodation: We have been provided with the following areas of the subject property which have been measured in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition): DESCRIPTION NIA (SQFT) REDUCED AREA (SQFT) 191 Brook Street Ground Floor 704 566* 193 Brook Street Ground Floor 635 558 * There has been an allowance of 2.5% applied for the benefit of return frontage 191-193 BROOK STREET, BROUGHTY FERRY DD5 2AG P4
Tenure: The property is held on a heritable title (Scottish equivalent of English freehold). Tenancy: 191 Brook Street 191 Brook Street is let to Trustees of Thomas Keay & Sons t/a Rough & Fraser from 29 November 2015 until 30 July 2022 on FRI terms at a passing rent of 18,000 per annum ( 31.80/sq ft Zone A). The tenant has recently extended their lease which was originally meant to expire in July 2017 showing their commitment to the location. 193 Brook Street 193 Brook Street is let to TCTT Retail Limited t/a Thomas Cook from 29 November 2015 until 30 July 2022 on FRI terms at a passing rent of 19,000 per annum ( 34.05/sq ft Zone A). The tenant has recently extended their lease for a period of 5 years showing their commitment to the location. The original lease over the property dates back to 1984, and, although the original lease was not to TCTT Retail Limited, the tenant has always been related to the travel agency business. 191-193 BROOK STREET, BROUGHTY FERRY DD5 2AG P5
Covenant: TCTT Retail Limited is a national travel agency firm who, for the year ending September 2016, had a sales turnover of over 280 million. Although there is no guarantee in place, the ultimate parent company of TCTT Retail Limited is Thomas Cook Group PLC who, for the year ending September 2016, had a sales turnover in excess of 7.8 billion and a profit of 42,000,000 (before tax). Thomas Cook Group PLC employs 21,000 people. Rough & Fraser is a firm of bakers and confectioners based in the Dundee area who were established in 1860. EPC: 191 Brook Street has an EPC rating of F. 193 Brook Street has an EPC rating of F. VAT: Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of Going Concern (TOGC). Legal Costs: Each party will be responsible for their own legal costs incurred in connection with the transaction. Proposal: We are instructed to seek offers in excess of 545,000 (FIVE HUNDRED AND FORTY FIVE THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive Net Initial Yield of 6.50%, based on standard purchaser s costs and LBTT at 4.51%. Viewing & Further Information: Please contact the sole selling agent: Stewart Sheridan/Cathal Keane/Allan King Sheridan Property Consultants 37 ONE, 37 George Street Edinburgh EH2 2HN Tel. 0131 300 0296 Sheridan Property Consultants www.sheridanproperty.co.uk Stewart: 07740 940898 email: stewart@sheridanproperty.co.uk Cathal: 07808 627224 email: cathal@sheridanproperty.co.uk Allan: 07702 520411 email: allan@ sheridanproperty.co.uk Sheridan Property Consultants for themselves and for the vendors or lessors 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 or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate; Date of Publication: September 2017