The property comprises a double fronted ground floor retail unit forming part of a larger two storey stone building. The subjects benefit from a good sized sales area with stair and goods lift access to basement level. The basement has a stock room, office, storage, staff toilets and kitchen. The property was previously used as a Post Office and was extensively fitted out in 2012.
Location
The subjects are situated on the west side of Victoria Road between its junction with Torrisdale Street and Prince Edward Street and approximately 1.5 miles south of Glasgow City Centre. Victoria Road is one of the main arterial routes linking the south side of Glasgow with the City Centre. Both Queens Park and Crosshill Railway Stations are close by.
Victoria Road is a prominent retail centre on the south side of Glasgow, serving Queens Park, Govanhill, Crosshill and Strathbungo.
The property is located on a busy retail parade where nearby occupiers include Sainsbury’s Local, Bank of Scotland, William Hill, Tesco Express and Inex Home Hardware.
Accommodation
We have measured the premises in accordance with the RICS Code of Measuring Practice (Sixth Edition) and estimate that the subjects extend to the following areas:
Ground Floor - 1718 sq ft (159.61 sq m)
Basement Floor - 1622 sq ft (150.68 sq m)
Total - 3340 sq m (310.29 sq m)
Total Reduced Area - 1540 sq ft (143.07 sq m)
(The above areas are based on “shell” unit prior to tenant’s fit out).
Terms
TENURE - The property is held on a heritable title (Scottish equivalent of English Freehold).
TENANCY - The property is let to Superdrug Stores PLC (Company No. SC53993) on a full repairing and insuring lease from 16 January 2012, expiring 15 January 2022. The lease has provision for a rent review in January 2017. The current rent passing is £XXX per annum, which equates to a Zone A Rent of approximately £XXX per sq.ft.
COVENANT INFORMATION - To the year end 27 December 2014, Superdrug Stores PLC showed a turnover of £XXX with a pre-tax profit of £XXX Shareholders’ Funds of £XXX and Net Worth of £XXX (up 13.32%). The company has over 900 stores in the UK, employing 14,000 staff.
Superdrug Stores PLC has a Dun & Bradstreet rating of 5A1.
PROPOSAL - We are instructed to seek offers in excess of £XXX (FOUR HUNDRED AND SEVENTY FIVE THOUSAND POUNDS) for our client’s heritable interest, subject to and with the benefit of the existing lease.
A purchase at this level would show an attractive net initial yield of 8.07% allowing for deduction of purchaser’s costs of 4.4%.
ENERGY PERFORMANCE CERTIFICATE - The property has an EPC Rating of “F” and copy certificate can be provided on request.
VAT - Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price. We assume that the purchase can be enacted by way of a Transfer of a Going Concern (TOGC).
LEGAL COSTS - Each party will be responsible for their own legal costs incurred in the transaction.
Specification
- Passing rent of £XXX per annum
- Net initial yield of 8.07%
- Let to Superdrug Stores PLC
- Lease expires January 2022
- Provision for Rent Review in January 2017
- Fully Modernised Unit
- Good opportunity to purchase reversionary fully let investment with over 6 years unexpired