The subjects comprise large retail premises, which opened in January 2012 as a “Sainsbury’s Local” convenience store, occupying part of the ground and basement floors within a traditional four storey over basement tenement building. In addition, the subjects have been extended to the rear by way of a newly built extensive single storey building carrying a steel trussed roof with a profile metal finish. Internally, the premises have been extensively upgraded and modelled in accordance with the bespoke “Sainsbury’s Local” shop fit design.
Location
The subjects are situated to the north of Great Western Road, a short distance to the east of its junction with Napiershall Street in the St George’s/Kelvinbridge district of Glasgow, to the north west of Glasgow City Centre. Great Western Road forms the principal arterial road route (A82), which leads in a north west direction from the city and consequently, has a particularly busy traffic volume and regular public transport connections. St George’s Cross and Kelvinbridge underground stations are located within a convenient walking distance. Occupiers in the locality include Ducati Glasgow, Spar, Barnardo’s, Machine Mart, Maplin Electronics and a number of showroom operators in the motor and furniture/interior trade.
Accommodation
From sizes taken during our inspection we calculate the approximate areas and dimensions to be as follows:
GIA: 271 sq.m (2,917 sq.ft)
Gross frontage 8 m (26 ft)
NIA Width: 8.4 m (26 ft)
Shop depth: 32.73 m (107 ft)
NIA 263 sq.m (2,827 sq.ft)
In addition it is also worth noting that basement accommodation of approximately 3400 sq. ft is included within the extent of ownership, however we would advise that Sainsburys do not use the basement.
Terms
We are instructed to seek offers over £540,000 for our client’s heritable interest subject to, and with the benefit of, the occupational lease. A purchase at this level would reflect a net initial yield of 6.1%, assuming purchaser’s costs of 5.8%.
Specification
• Exciting new secure investment opportunity let to Sainsbury’s Supermarkets Limited (5A1 D and B Rating).
• Well established retailing pitch close to Spar, Machine Mart, Maplin Electronics and Barnardo’s.
• New 15 year lease commencing 1st July 2011.
• Passing rent of £35,000 per annum, with 5 yearly reviews linked to annual RPI compound.
• Reviews capped (4%) and collared (1%) annually, meaning minimum uplift to £36,785 in June 2016.
• Approximate ground floor GIA of 2,917 sq.ft
• Offers over £540,000, reflecting a NIY of 6.1%, after costs of 5.8%