HIGH YIELDING PRIME RETAIL INVESTMENT48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

Investment Summary— Prime high street retail investment

— Let to Tesco Stores Ltd on an FRI lease expiring 4th December 2019

— Total area 3,511.49 sq m (37,798 sq ft)

— Passing rent of £560,000 per annum

— Freehold opportunity

— Offers in excess of £3,400,000 excluding VAT

— Net initial yield of 15.54% after allowing for standard purchaser’s costs of 6.01%

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

LocationDUNDEE IS THE FOURTH LARGEST CITY IN SCOTLAND SITUATED ON THE NORTH BANK OF THE FIRTH OF TAY. THE CITY IS LOCATED APPROXIMATELY HALF WAY BETWEEN EDINBURGH (100KM SOUTH) AND ABERDEEN (105KM NORTH).

Dundee and the surrounding retail catchment has a population of over 250,000 persons and benefits from two leading life science universities, University of Dundee and University of Abertay. The city is also home to Ninewells Hospital the second largest hospital, in Scotland.

The local economy is driven by growing technology and life sciences sectors and has strong local authority, financial and business services sectors. The tourist economy generates over £55 million which should increase significantly given recent investment in the Dundee Waterfront.

Dundee’s Waterfront runs for 8km along the River Tay and is currently undergoing a £1 billion regeneration programme. The development will include the V & A Museum of Design, a new train station and hotel, all of which is located a short walk from Murraygate.

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

SituationTHE SUBJECTS ARE SITUATED ON A PRIME PITCH ON THE WEST SIDE OF MURRAYGATE.

The property is located towards the north end of the Murraygate within close proximity to the Wellgate Shopping Centre and opposite Marks & Spencers.

50 metres

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48-60 MURRAYGATEDUNDEEDD1 2BB

Experian Goad Plan Created: 26/06/2017Created By: Lambert Smith Hampton

Copyright and confidentiality Experian, 2017. © Crown copyright anddatabase rights 2017. OS 100019885

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

Retailing in DundeeTHE PEDESTRIANISED MURRAYGATE IS DUNDEE’S TRADITIONAL HIGH STREET PITCH AND THE LINK BETWEEN THE TWO SHOPPING CENTRES. MURRAYGATE IS ANCHORED BY MARKS & SPENCERS WHICH IS LOCATED DIRECTLY OPPOSITE THE SUBJECTS. OTHER MAJOR RETAILERS IN CLOSE PROXIMITY TO THE SUBJECTS INCLUDE DEICHMANN, CLARKS, VODAFONE AND SPECSAVERS.

There are two shopping centres in the city centre, the Wellgate and Overgate. The primary retailers within the two shopping centres include Primark, Debenhams, Topshop, Boots, B&M, New Look and Superdrug.

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

DescriptionTHE PROPERTY COMPRISES TWO RETAIL UNITS, ONE AT GROUND FLOOR LEVEL, THE OTHER AT FIRST FLOOR LEVEL WITH STORAGE AND STAFF FACILITIES ON THE SECOND FLOOR.

Both the head and sub-tenants, Tesco Metro and DW Sports, have fitted the units out in their corporate style. Tesco have recently invested in a new store fit out.

There is a secure service yard and loading bay to the rear of the property with goods lift access to the ground and first floors. The service area also benefits from 10 staff parking spaces.

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

Accommodation

Floor Sq M Sq Ft

Ground 1,603.84 17,264

First 1,595.40 17,172

Second 312.25 3,361

Total 3,511.49 37,798

We have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (6th Edition) and would estimate that the subjects extend to the following gross internal areas:

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

CovenantFounded in 1919, Tesco is one of the largest grocery and general merchandising retailers in the world.

Tesco Stores Limited has a Graydon rating of S, being low risk. In February 2016, the company reported a net worth of £1.589 billion and a turnover of £39.84 billion.

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

TenancyThe subjects are let to Tesco Stores Ltd on a full repairing and insuring lease from 5 December 1984 until 4 December 2019 at £560,000 per annum.

Tesco sublet part of the first floor to DW Sports.

TenureThe property is held on a Scottish freehold basis.

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

EPCThe property has an energy performance rating of G.

VATThe property is elected for VAT, therefore, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC).

Legal CostsEach party will be responsible for their own legal costs incurred in any transaction with the Purchaser being responsible for the payment of Land and Buildings Transaction Tax, Registration Dues and VAT incurred thereon.

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal

Investment Considerations— Prime high street pitch

— Tenant and sub-tenant in occupation

— Tesco recently upgraded the store fit out

— Directly opposite Marks & Spencers

— Strong potential for lease regears

— High yielding opportunity with asset management potential

HIGH YIELDING PRIME RETAIL INVESTMENT 48 – 60 MURRAYGATE AND 37 – 41 ALBERT SQUARE, DUNDEE, DD1 2BB

ContactFor further information or to arrange a viewing, please contact:

Michael Hopkins028 90 500 10007767 332 332mph@mckibbin.co.uk

Ryan McKenna028 90 500 10007984 15 44 88rmck@mckibbin.co.uk

Andrew Shiells0131 226 032907921 499 860ashiells@lsh.co.uk

Kirsty Henderson0131 226 033607736 620 999khenderson@lsh.co.uk

ProposalWe are instructed to seek offers over £3,400,000 exclusive of VAT, for our client’s Scottish freehold interest in the property with the benefit of the existing lease.

A purchase at this level would reflect a net initial yield of 15.54% after allowing for standard purchaser’s costs of 6.01%.

MISREPRESENTATION ACT 1967 AND DECLARATION: LSH/McKibbin 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 item. iii) No person in the employment of LSH/McKibbin has any authority to make or give any representation or warranty in relation to this property. July 2017.

Summary Location Retailing in Dundee Description Tenancy Further Information Proposal