prime high street retail investment opportunity · 2018-03-01 · prime high street retail...

PRIME HIGH STREET RETAIL

INVESTMENT OPPORTUNITY 01

109-113 Sauchiehall

Street, Glasgow, G2 3DD


INVESTMENT OPPORTUNITY



INVESTMENT SUMMARY

Prime retail investment located in Glasgow, the top retailing location in Scotland;

Prominent retail unit located on Glasgow’s ‘Golden Z’, the prime retailing pitch in

Glasgow;

EE Limited (D&B Rating 5A1) until 10th July 2023 at a current passing rent of

£111,500 per annum which equates to a Zone A rate of £125.70 per sq ft;

Prime retail accommodation arranged over ground and first floors in addition to

unfinished cellular space and attic both of which would lend itself to residential

redevelopment;

Heritable tenure (Scottish equivalent of English Freehold).

Offers in excess of £1,175,000 (One Million, One Hundred and Seventy Five

Thousand Pounds Sterling) are sought for our client’s heritable interest in the

property, subject to contract and exclusive of VAT. A purchase at this level would

provide a net initial yield of 9.00% assuming purchaser’s costs at 5.47%.



M74

M9

M77

A1

M8M8

M90

M80EDINBURGH

GLASGOW LIVINGSTON

STIRLING

DUNDEE

PERTH

ABERDEEN

INVERNESS

FORT WILLIAM

The city has a population of 606,340

people (2016) and the entire region

has a population of approximately 2.3

million people which is approximately

40% of Scotland’s population. Glasgow

is therefore the fifth largest Urban Area

in the whole of the UK. The city is known

for its cultural, shopping and academic

prowess and is fast becoming one of

Europe’s most vibrant cities.

Glasgow is known for its retailing and

is the top shopping location in Scotland

and second only to London in the UK,

with over half a million square metres of

retail space and a shopping population

of 1.841 million. The colloquially

named ‘Style Mile’ is focussed around

Buchanan Street, Argyle Street and

Sauchiehall Street. It is one of Europe’s

most dynamic cities with over £4.85bn of

comparison goods spend available in

the catchment area and is featured

in the top 20 super league of major

European shopping destinations by

commercial expenditure. Furthermore,

there are c. 2.3 million tourists drawn

to Glasgow every year which increases

footfall and spending.

Glasgow is the largest city in Scotland and the third largest in the UK.

LOCATION

Glasgow is the top shopping location in Scotland and second only to London in the UK



SITUATION

Sauchiehall Street is linked into Glasgow’s ‘Golden Z’ and

benefits from an annual footfall of 16 million making it one

of Glasgow’s prime retail thoroughfares. Key surrounding

occupiers include: Marks and Spencer, Primark, Sainsburys,

Pret, McDonalds, Boots and Cineworld.

The property is easily accessible with Glasgow Bus Station,

Queen Street and Central Railway Stations and St Enoch

subway station all within a few minutes’ walk. Furthermore,

the airport is less than a 20 minute bus journey away with

regular services running from the city centre.

The former BHS unit, located near the property, is to be

redeveloped by Formal Investments into a mixed use scheme.

The £75 million re-development will comprise a 12 storey

scheme providing office and retail space.

GLASGOWCENTRAL

RAIL

GLASGOW QUEEN STREET RAIL

BUCHANAN GALLERIES SHOPPING CENTRE

ST ENOCHCENTRE

GLASGOWBUS STATION

BROOMIELAW STREET CLYDE STREET A814

ARGYLE STREET

QU

EEN

STR

EET

ST. VINCENT STREET COCHRANE STREET

G

LASG

OW

BRI

DG

E

U

NIO

N S

TREE

T

R

ENFIE

LD S

TREE

T

RENFREW STREET

W. GEORGE STREET

GEORGE SQUARE GEO

N

. HAN

OVE

R ST

REET

KYLE

ST

OBBIE’S LANE

SALT

MAR

KET

H

IGH

STRE

ET

CATHEDRAL ST

COWCADDENS ROAD

GALL LONDON

INGRAM STREET

CLYDE PLACE A8

MO

NTR

OSE

STR

EET

W

ELLIN

GTO

N S

TREE

T

BATH STREET

W C

AMPB

ELL

STRE

ET

BRIDGEGATE A8

DUNLOP STREET

ST

OCK

WEL

L

STRE

ET

TRONGATE STREET HOWARD STREET

OSBOURNE STREET

MIT

CHEL

L ST

REET

W

. NILE

STR

EET

W. REGENT STREET

H

OPE

STR

EET

MILL

ER S

TREE

T

WILSON STREET

KIN

G S

TREE

T

CAN

DLE

RIG

GS

ST. MUNGO AVENUE

N. F

RED

ERIC

K ST

REET

OSW

ALD

STR

EET

H

OPE

STR

EET

ROBE

RTSO

N S

T REE

T

RT DUN

DASS ROAD

KENNEDY STREET

S

BUCHANAN STREET SUBWAY

M8

SAUCHIEHALL STREET RENFREW STREETBATH STREET

ST. VINCENT STREET

HILL STREET

EUCH STREET

ELM

BAN

K ST

REET

HO

LLAN

D S

TREE

T

PITT

STR

EET

DO

UG

LAS

STRE

ET

BLYT

HSW

OO

D S

TREE

T

ARGYLE STREET

SCO

TT S

TREE

T

M8

S

ST ENOCHSUBWAY

KINGSTON STREET MORRISON STREET NELSON STREET

WALLACE STREET REET

OXFORD STREET

SHOP LANE WATERLOO STREET

ST VINCENT STREET

DENS WOODSIDE PLACE

DO

UG

LAS

STRE

ET

ELDERSLIE STREET

YDESIDE EXPRESSWAY A814

BRO

WN

STR

EET

YORK

STR

EET

WAS

HIN

GTO

N S

TREE

T

TH STREET

ARGYLE STREET

ANDERSTON QUAY A814

LAN

CEFIE

LD S

TREE

T

HYD

EPAR

K ST

REET

PORT

STR

EET

STREET DORSET STREET

W C

AMPB

ELL

STRE

ET

W CAMPBELL STREET

JAM

ES W

ATT

STRE

ET

BROOMIELAW STREET

BOTHWELL STREET

PARK GARDENS

ANE

BERKELEY STREET

KENT ROAD

CHEAPSID

E STREET

WARRO

CH STREET

ANDERSTON

TUR

NBULL

STRE

ET

PAISLEY ROAD

GO

RBAL

S STR

EET

W

EST

STRE

ET

REET

CARLTON PLACE A

GREENDYKE STR

SAUCHIEHALL STREET

B

UC

HA

NA

N S

TR

EET

Central Retail Core

Central Business Core

Central Leisure Core

THE PROPERTY

Golden Z



ACCOMMODATION

The subjects have been measured in accordance with the

RICS Code of Measuring Practice (6th Edition) and the Net

Internal Areas (NIA) are as follows:

Floor Area (sq ft) Area (sq m)

Ground Floor 939 87.2

First Floor 115 10.7

Total 1,054 97.9

ITZA 887 82.41

DESCRIPTION

The property comprises a prime retail unit located on

Sauchiehall Street, part of Glasgow’s Golden ‘Z’. The property

is arranged over ground, first and second floors. There is also

attic accommodation, accessed via a stairwell on the

second floor.

At ground level, the property provides high quality retail space

with glazed frontage onto Sauchiehall Street as well as office

and storage accommodation to the rear.

The first floor accommodation comprises a staff room with

male and female toilet facilities. The second floor comprises

a traditional unfinished residential layout which is accessed

via a central stairwell, within the flat there is a stair which

leads to attic accommodation.

To the rear of the property, there is a shared courtyard which

is accessed via a lane from Hope Street.



EPC

The property has an EPC rating of ‘D’.

TENURE

Heritable (Scottish equivalent of Freehold).

TENANCY INFORMATION

The property is let in its entirety to EE Limited until

10th July 2023. The current passing rent is £111,500 per annum

(£125.70 per sq ft ZA). The rent is to be reviewed five yearly,

on an upwards only open market basis.

There are certain works which the Tenant is not required to

reinstate at the expiry of the Lease, these include: reinstating

the attic space to the original layout; reinstating the shop to

the original shop layout; redecorating and re-carpeting to the

Landlord’s approval; rewiring to new layout; redecorating the

stairwell and removing and reinstating the original shop front.

The tenant chose not to exercise their break option in

July 2018, demonstrating their commitment to the location.

SAUCHIEHALL STREET(PEDESTRIANS ONLY)

FOR

MAL

INVE

STM

ENTS

PRO

POSE

D S

CH

EME



COVENANT INFORMATION

EE (formerly Everything Everywhere) is a British mobile network operator, internet service provider and a

division of BT Group. It was established in 2010 as a 50:50 joint venture between Deutsche Telekom and France

Télécom (now Orange S.A.) through the merger of their respective T-Mobile and Orange businesses in the UK.

It is the largest mobile network operator in the UK, with around 30 million customers and the largest operator

of 4G services in Europe.

For further information please visit: www.ee.co.uk

EE Limited have a Dun and Bradstreet rating of 5A1 indicating a ‘minimum risk’ of business failure.

Key Financials are outlined below:

Fiscal Non consolidated

GBP

31 Mar 2017

(000’s)

Fiscal Consolidated

GBP

31 Dec 2015

(000’s)

Fiscal Consolidated

GBP

31 Dec 2014

(000’s)

Sales Turnover 7,991,000 6,311,000 6,327,000

Profit / (Loss) Before Taxes 651,000 416,000 (255,000)

Tangible Net Worth 56,000 (551,000) (868,000)

Net Current Assets (Liabilities) (1,393,000) (1,138,000) (962,000)

VAT

VAT will be applicable to the sale of the property,

which we anticipate will be undertaken by way of a

Transfer of a Going Concern (TOGC).

PROPOSAL

Offers in excess of £1,175,000 (One

Million, One Hundred and Seventy

Five Thousand Pounds Sterling)

are sought for our client’s heritable

interest in the property, subject to

contract and exclusive of VAT.

A purchase at this level would provide

a net initial yield of 9.00% assuming

purchaser’s costs at 5.47%.


INVESTMENT OPPORTUNITY

FURTHER INFORMATION

For further information please contact:

Janey Douglas Simon Cusiter Charlie McNaught

[email protected] [email protected] [email protected]

0131 301 6718 0131 243 2203 0141 567 6612

© Crown Copyright 2018. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identifi cation only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:-a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an off er or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property;d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken.

For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law

Copyright © Jones Lang LaSalle IP Inc. March 2018. All rights reserved.

prime high street retail investment opportunity · 2018-03-01 · prime high street retail...

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