Investment Summary Located in central Inverness Mixed retail and residential investment Strong retailer covenants RS McColl and William Hill Plc Provides a gross income of 248,700 per annum Grade B Listed property Offers over 2,100,000 are sought which provide a gross initial yield of 11.19% after purchasers costs of 5.8% M I X E D R E S I D E N T I A L A N D R E TA I L
Grant St Lochalsh Rd Lochalsh Rd MIXED RESIDENTIAL AND RETAIL A835 NORTH KESSOCK INVERNESS 6 BALLOCH Kilmuir Rd Madras St Nelson St Anderson St Shore St Queen Street W Harbour Rd alke r Pl Wal k er Rd Telford Rd Gilbert St Burnett Rd Location Inverness is the principal city within the Highlands of Scotland, being the administrative base for the Highland Council and the main focus for retailing and commerce in the Highland region. According to the 2001 Census, the city has a population of just over 40,000 which increases to over 80,000 within a 20km radius. The principal site is located to the north of Queensgate and south of Chapel Street, a short distance to the west of Inverness Railway Station in the city centre. The immediate surrounding area is developed with traditional tenement properties with retail units on the ground floor and office and residential properties on the upper floors. 47A Huntly Street is located a short distance from Queensgate, situated on the west bank of the River Ness at the junction between Huntly Street and Queen Street, again within Inverness City Centre. Telford St Harrowden Rd Ross Ave Abban St Attadale Rd Abbey Cl Huntly Pl Well St Kenneth St Celt St 47a Huntly Street Planef Queen St Glebe St Douglas Row Balnain St Friars St Chapel St B862 Huntly St 2-8 Queensgate Bank ST Innes St Rose St Longman Rd B865 Academy St Church St INVERNESS STATION
MIXED RESIDENTIAL AND RETAIL Description The principal property is located on Queensgate and comprises a converted former Grade B Listed office building, originally built for Royal Insurance by Ross and Macbeth in 1894. More recently the subjects have been redeveloped to create:- 6 Queensgate, Inverness The property comprises 21 fully furnished flatted dwellings arranged over the first, second and attic floors of the property, all held under a pitched and slated roof with oriole windows and Paris Balconies at first floor. The conversion was completed approximately 3 years ago creating 7 individual flats on each level. The subjects have a dedicated entrance foyer and benefit from a video entry system. 2/4 Queensgate, Inverness The property comprises a retail unit arranged over ground and basement floors within the property. Internally, the ground floor has been fitted out as a licensed betting office and is finished to William Hill s corporate fit out. 8 Queensgate, Inverness The subjects comprise a modern retail unit arranged over ground and basement floors within the property. The retail frontage is of traditional sandstone and dispersed with full height glazed set within aluminium frames. The RS McColl standard signage is positioned above the entrance and has been fitted to their corporate fit-out internally. 47A Huntly Street Located remotely from Queensgate, the property comprises a one bedroom flat which is situated on the top floor of a two storey and attic building which is of traditional stone construction. The subjects have a retail unit on the ground floor (not in ownership), whilst the first floor consists of a separate residential flat (also not in ownership).
Accommodation & Tenancy Agreement ADDRESS TYPE FLOOR AREA (GIA - SQM) FLOOR LEVEL EPC RATING RENT INCOME (PER ANNUM) 6/1 Queensgate 2 Bedroom Flat 54 First D * 8,160 6/2 Queensgate 1 Bedroom Flat 55 First D * 7,280 6/3 Queensgate 2 Bedroom Flat 77 First F * 8,840 6/4 Queensgate 3 Bedroom Flat 56 First E * 10,320 6/5 Queensgate 3 Bedroom Flat 94 First E * 10,920 6/6 Queensgate 2 Bedroom Flat 75 First D * 8,840 6/7 Queensgate 2 Bedroom Flat 55 First E * 8,840 6/8 Queensgate 2 Bedroom Flat 62 Second C * 8,840 6/9 Queensgate 1 Bedroom Flat 56 Second C * 8,840 6/10 Queensgate 1 Bedroom Flat 76 Second C * 8,996 6/11 Queensgate 2 Bedroom Flat 74 Second D * 9,100 6/12 Queensgate 2 Bedroom Flat 100 Second D * 10,400 6/13 Queensgate 1 Bedroom Flat 67 Second D * 6,720 6/14 Queensgate 1 Bedroom Flat 55 Second C * 6,720 6/15 Queensgate 1 Bedroom Flat 49 Third C * 7,020 6/16 Queensgate 1 Bedroom Flat 44 Third C * 6,720 6/17 Queensgate 1 Bedroom Flat 80 Third C * 7,280 6/18 Queensgate 2 Bedroom Flat 58 Third C * 8,844 6/19 Queensgate 2 Bedroom Flat 90 Third C * 5,100 6/20 Queensgate 2 Bed roomed Flat 55 Third C * 8,160 6/21 Queensgate 1 Bedroom Flat 48 Third C * 7,280 47A Huntly Street, Inverness 1 Bedroom Flat 48 Second E * 6,480 2/4 Queensgate, Inverness Retail Unit Let to William Hill 282 NIA 132 ITZA Ground F * 45,500 8 Queensgate, Inverness Retail Unit Let to Martin Retail Group 138 NIA 71 ITZA Ground F * 23,500 TOTAL 248,700 * A Full Copy of each EPC can be provided on request William Hill 2/4 Queensgate is let to a William Hill Organisation Limited on a Full Repairing and Insuring lease originally for 25 years expiring on 2nd March 2017. The current passing rent is 45,500 per annum. RS McColls 8 Queensgate is let to Martin McColl Group on a Full Repairing and Insuring lease originally for 25 years expiring on the 1st May 2019. The current passing rent is 23,500.
MIXED RESIDENTIAL AND RETAIL Covenant All the residential units are let to private individuals on short assured tenancy agreements apart from flat 6/19 which is let on a longer term agreement. Rental deposits of approximately 500 per property are held with My Deposit Scotland and would be transferred to the new purchaser on the date of settlement. All flats are fully furnished An Inventory List will be provided on request to seriously interested parties. McColls The orginal lease is held with Martin Retail Group Plc. Forbuoys (a subsidiary of TM Retail) aquired Martin Retail Group creating the UK s largest neighbourhood retailer with over 1,200 stores conveniently located throughout England, Scotland and Wales. It incorporates brands such as RS McColls, Martins the Newsagent, More, Forbuoys and Dillons. For the year ended November 2012, Martin McColl Ltd had a turnover of 409,154,000 and pre-tax profits of 19,671,000. William Hill William Hill Plc is one of the largest Bookmakers in the United Kingdom. William Hill Organization Ltd had a turnover up to 1st January 2013 of 15,782,169,000 and a pre-tax profit of 301,096,000. Proposal We are instructed to seek offers in excess of 2,100,000 for the entire portfolio, which provides a gross initial yield of 11.19% after purchasers costs of 5.8% Tenure Heritable interest, which is the equivalent of English Freehold. VAT All prices, premiums and rents etc are quoted exclusive of VAT at the prevailing rate. Legal Costs Each party is to be responsible for their own legal costs incurred in this transaction. Viewing & further information All viewings and further information must be arranged through the selling agents: Blair Morrison E: bmorrison@lsh.co.uk T: 0131 226 0330 Lambert Smith Hampton for themselves and for the vendors or lessors of this property whose agents they are give notice that: (1) 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; (2) 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, but 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; (3) no person in the employment of Lambert Smith Hampton has any authority to make or give representation or warranty whatever in relation to this property. Date of production: June 2013.