The premises comprise a double fronted ground floor and basement shop unit contained within a 4 storey, terraced building, of stone and slate construction. The upper floors are given over to, used and operated as an aparthotel.
The unit is fitted out in the tenant’s corporate style and provides sales areas on the ground floor and part basement together with storage, welfare and ancillary areas also in the basement.
Location
Inverness is the commercial, administrative, business and tourism capital for the Highlands and Islands of Scotland. The city is one of the fastest growing in Europe hosting a resident population of c.82,000 (2021 Census) and a wider catchment of approx. 350,000.
The city’s population is projected to increase by 4.5% between 2018 and 2030. It is a relatively young population as 80% are aged under 65. In addition, Inverness is also home to in excess of 6,500 students attending the main campus of the University of the Highlands and Islands.
Inverness enjoys excellent transportation links – by road via the A96, Aberdeen (104 miles east) and via the A9, Edinburgh (157 miles south east) and Glasgow (170 miles south west); public transport is well served with direct rail connections to Aberdeen, Edinburgh, Glasgow and beyond, supplemented by a bus network linking Inverness to all main Scottish towns and cities.
Inverness Airport, 9 miles east of the city centre, offers regular direct UK domestic and European flights.
The subject property is located in the heart of Inverness city centre, occupying a prominent position within the prime pitch of the pedestrianised section of the High Street, the city’s principal shopping thoroughfare.
Many national retailers are represented close by including WH Smith, Mountain Warehouse, Specsavers, Superdrug, The Works and McDonald’s. The Eastgate Shopping Centre is a short distance away housing many other multiple retailers including M&S.
Accommodation
The property provides the following net internal areas:
Ground Floor Sales - 3,027 sq ft (281.22 sq m)
Basement Sales - 1,848 sq ft (171.68 sq m)
Basement Ancillary - 1,607 sq ft (149.29 sq m)
Total - 6,482 sq ft (602.19 sq m)
ITZA - 2,490 sq ft (231.33 sq m)
Terms
Tenancy - The premises are let to Slater Menswear (Company No. SC052746) on a Full Repairing and Insuring lease (subject to Schedule of Condition) expiring 25th August 2039, incorporating a tenant break option at 25th August 2034. The current rent passing is £90,000pa and subject to upward only open market review as at 25th August 2029 and 5 yearly thereafter.
The lease was recently extended by 10 years, demonstrating the tenant’s commitment to the property, in exchange for which they were granted a 6 month rent free period which is due to expire on 27th August 2025.
Under the terms of the original lease the maximum level to which the rent could be reviewed, at the first review in August 2024, was the current rent of £90,000pa. We therefore consider this figure to be reversionary and that the current ERV is in the order of £100,000 – £110,000pa.
Tenant Covenant - Slater Menswear (SC052746) is a family run, private company, that has now been in the menswear retailing business for more than 50 years.
Slaters have 27 stores throughout England, Scotland and Wales, with around 800 employees, and are tenants of many major institutions and property investors including Land Securities and Royal London Mutual.
More detailed financial information can be made available to seriously interested parties.
Tenure - Heritable Title (Scottish equivalent of English Freehold).
EPC - A copy of the Energy Performance Certificate is available upon request.
Legal Costs - Each party will bear their own legal costs in the transaction.
VAT - The property has been elected for VAT and, therefore, VAT will be payable on the purchase price. However, we anticipate the transaction can be treated as a TOGC (Transfer as a Going Legal Costs Concern).
Proposal - We are instructed to seek offers in excess of £1,200,000 (One Million Two Hundred Thousand Pounds), subject to and with the benefit of the existing lease to Slater Menswear, which would reflect a Net Initial Yield of 7.09% after allowance for purchaser’s costs of 5.84%.
Anti-Money Laundering - In order to comply with legal/statutory requirements any offers accepted will be subject to appropriate AML checks being carried out.
Specification
- Inverness is the Highland Capital of Scotland
- One of the fastest growing cities in Europe
- Retail unit located in the prime, pedestrianised, pitch of the principal shopping thoroughfare
- Attractively sized unit with extensive frontage and part trading basement
- Let to a very successful national retailer 9 years guaranteed income, lease expiry August 2039
- Passing rent of £90,000pa is reversionary
- Heritable interest (Scottish equivalent of English freehold)
- Asking price of £1,200,000 reflects an attractive NIY of 7.09%