59 Sauchiehall Street, 108-112 Renfield Street & 100-106

Home , Buchanan bus station, Cineworld Glasgow, Sauchiehall Street

59 SAUCHIEHALL STREET, 108-112 RENFIELD STREET & 100-106 RENFIELD STREET GLASGOW G2 3DA

Burger King and KFC – Prime Long-Let Leisure Investment Opportunity with 16+ years to Expiry Executive Summary

• Glasgow ranks 1 in the UK in terms of the volume of total retail spend available within the Primary Retail Market Area. (Promis, 2018). • Located on Sauchiehall Street and Renfield Street within Glasgow’s prime retail district ‘The Golden Z’ and within close proximity to Cineworld Glasgow (top 10 trading cinema in the UK) and Buchanan Galleries. • WAULT of 16.83 years to expiry (9.60 years to break). • Re-based rents provides future rental growth opportunities within the micro location. • Burger King occupies a prime return frontage unit, with a lease expiry in 2033. In 2015, the vacant upper floors above the Burger King demise were granted planning consent for 9 residential units. • KFC have been in occupation since 2003, and have recently taken a new lease from 2018 until 2038 and spent approximately £750,000 refurbishing their store. • Value add opportunities with potential upper floor residential development, which is available as part of a larger package or by separate negotiation. • Heritable Interest (Scottish equivalent of English Freehold). • Total passing rent of £305,000 per annum. • We have been instructed to seek offers for the retail element in excess of £5,226,000, subject to contract and exclusive of VAT reflecting a NIY 5.50% assuming standard purchasers costs of 6.10%. GLASGOW CENTRAL

GLASGOW QUEEN ST BUCHANAN STREET

BUCHANAN GALLERIES

RENFIELD STREET

ROYAL CONCERT HALL

BUCHANAN BUS STATION

BHS REDEVELOPMENT SITE

SAUCHIEHALL STREET

PAVILION THEATRE GLASGOW CALEDONIAN UNIVERSITY A83 TROSSACHS A84 A9 NATIONAL PARK M9 77 Location A81 A91 A9 A811 M90 Garelochhead Stirling Glasgow is the largest city in Scotland, third largest in the UK and is fast becoming one of A909 Europe’s most vibrant and cosmopolitan cities. It is located in the West of Scotland and Dunfermline A82 1 81 M80 lies approximately 400 miles north of London and 40 miles to the west of Edinburgh. The A FIRTH M876 city has a population of almost 600,000. The entire region surrounding the conurbation Helensburgh A809 OF FORTH has approximately 2.3 million people within one hour’s drive which is more than 40% of Kilsyth River Clyde Falkirk EdinburgEdinburghh A8 M9 Scotland’s entire population. Dunoon Greenock 91 Port A82 Cumbernauld Edinburgh Glasgow A80 A8 A7 A78 A199 The total population within the Glasgow primary catchment area is 1,867,000 and the city 3 M8 Clydebank M80 Armadale has an estimated shopping population (those who regard the city as their main shopping Glasgow Livingston Skelmorlie A720 destination) of 865,000. Glasgow ranks 1 in the UK in terms of the volume of total retail Airdrie A68 M8 Rothesay GLASGOW spend available within the Primary Retail Market Area. (Promis, 2018). CLYDE MUIRSHIEL Paisley 1 A7 A7 REGIONAL PARK Bellshill 25 M77 A7 Motherwell A7 A737 26 Millport Hamilton Situation 06

East A7 A7 02 West Kilbride M74 A7 03 The properties are let to Burger King and KFC, located within the pedestrianisedKilbride prime retailing pitch on the corner of Sauchiehall Street and Renfield Street. A7 2 A78 1 A7 Sauchiehall Street forms part of Glasgow’s prime retailing district known as the ‘Golden Z.’ Kilmarnock The street has firmly established itself as one of the prime retail destinations over the past decades with key surrounding occupiers including Marks & Spencer, Primark, Starbucks, Doc A77 Martins, Sainsbury’s, Pret and Cineworld. In addition, there is the Buchanan Galleries Shopping Centre to the eastern end further increasing footfall. With the street offering a natural thoroughfare from the Central Business District to Buchanan Bus Station and Galleries, it is M8 one of the busiest streets in the city with annual footfall figures over 16 million people. PORT DUNDAS RD 16 17 EDINBURGH Renfield Street connects directly to the prime retailing section of Sauchiehall Street. It is ideally located close to Cineworld on Renfrew Street, Scotland’s busiest cinema, ensuring its T S 18 C R OW E prime location for restaurant fast-food operators. V CAD DE O R NS R EN D N FREW ST A H

N B AT SAU Cineworld H S C CHARING CROSS T HIE HA LL ST (GLASGOW)

Buchanan

BURGER KING & KFC T Surrounding Redevelopment S Galleries

WE D CENT STREET ST VIN ST. G L ST. V EOR T I T NC GE S IE EN S T T S S T F Located directly opposite the subject, plans for a N E N A GLASGOW QUEEN ST L

E I T N S R £75 million redevelopment of the former BHS have N

A L

T H L

S recently been announced. Proposals have been E C E B U

P B W A814 submitted to the local authority for a 12-storey M

19 C scheme which will include 130,000 sq ft of Grade A GLASGOW CENTRAL

T AR GYL office space with 18,000 sq ft of ground floor retail S E S TRE ET

M8 accommodation fronting onto Sauchiehall Street. W T RO O N A8 GAT This development will drastically enhance the look 14 R St. Enoch Centre E B BROOMIE LAW ARGYLE STREET and feel of the micro location upon completion. Stallan Brand architects CGI CL YD E ST T 20 E MO E A8 RRIS R ON T STR S EET

WN O T A8 R S C B 21 N AL GLASGOW T A O S T E T R AIRPORT S S N L T I R A E A74(M) M74 L E B T G R E O

G Description

The subject property comprises two adjoining leisure/retail units over basement, ground and first floors with the upper floors vacant and separately accessed. The leisure elements are let to Burger King, fronting onto Sauchiehall Street, and KFC which fronts onto Renfield Street.

Burger King, 59 Sauchiehall Street & 108-112 Renfield Street The property comprises a corner block on Sauchiehall Street and Renfield Street. Burger King have a lease over the basement, ground and first floors. The Burger King element extends to approximately 5,077 sq ft NIA with an ITZA of 1,775 sq ft.

KFC, 100-106 Renfield Street KFC have recently undergone a £750,000 refurbishment in line with their corporate branding and extended the customer area onto the first floor. Their leasehold interest extends over basement, ground and first floors providing approximately 9,074 sq ft NIA with an ITZA of 2,563 sq ft of accommodation.

Residential Development Opportunity The upper floors above Burger King (2nd, 3rd & 4th) and KFC (2nd & 3rd) are currently in shell condition and do not comprise part of either occupier’s demise. Separate access to the element above Burger King is provided through an entrance fronting onto Renfield Street whilst access to the demise above KFC is via Sauchiehall Lane. These upper parts extend to a GIA of 13,997 sq ft.

In 2015, the vacant upper floors above the Burger King demise were granted planning consent for 9 residential units. (REF: 15/01982/DC). An additional planning application has been submitted to Glasgow City Council for the use of vacant upper floors for 12 residential flats. The council have stated that they are minded to grant consent. (REF:18/00186/FUL.)

A Deed of Condition has been granted to allow a horizontal split of the commercial and residential element. This residential element is available as part of a wider package including the ground floor leisure element or by way of separate negotiation. Further information can be provided upon request. Tenure

Heritable Interest (Scottish equivalent of English Freehold).

Tenancy

Unit Area Rent Rent Tenant Lease Start Lease Expiry Next Review Break Comments / Asset Management Name (ITZA sq ft) (pa) (ITZA psf)

59 Sauchiehall Caspian Food Retailers Ltd Guaranteed by Caspian UK Group Ltd, 1,775 02/04/2013 01/04/2033 01/04/2023 02/04/2028 £175,000 £98.59 currently being assigned to Royale Holdco Street t/a Burger King Ltd. Total NIA 5,077 sq. ft.

100-106 Renfield Alderforce SC Ltd Ground Basement is subject to a schedule of 2,563 08/01/2018 07/01/2038 07/01/2023 08/01/2028 £130,000 £50.72 condition and is excluded for rent review Street t/a KFC & First purposes. Total area 9,074 sq ft.

2nd 5,987 Second, third & An application to convert the upper floors Vacant GIA 3rd 5,977 into 12 residential units has been submitted fourth floors to Glasgow City Council. 4th 2,003

WAULT of 16.83 years to expiry Total £305,000 (9.60 years to break) Covenant Analysis

Turnover Profit before Net Worth Income profile by tenant Tenant Fame Score Comment 2017 Taxation 2017 2017 Burger King Guaranteed by Caspian Food Retailers Ltd £317,800,000 £1,917,000 £2,087,000 Secure (85) Caspian UK Group KFC t/a Burger King Ltd. Guaranteed by Alderforce SC Ltd t/a KFC £14,864,590 £1,320,588 £596,900 Secure (92) Marsdens Caterers of Sheffield Ltd. 43% Caspian Food Retailers Ltd Caspian Food Retailers Ltd are one of the UK’s largest Burger King franchisees with over 74 restaurants. The lease is guaranteed by Caspian UK Group. Caspian UK Group were purchased by international private equity 57% group Bridgepoint in November 2017. Other notable leisure operators under the Bridgepoint umbrella include Zizzi and Ask Italian.

Alderforce SC Ltd Alderforce SC Ltd is not only a large KFC franchisee, the company is also one of the largest Costa Coffee and Taco Bell franchisees in the UK. EPC Planning Proposal Burger King REF:18/00186/FUL - Pending We have been instructed to seek offers for the retail/leisure element in excess of £5,226,000, EPC Rating F (89) Use of vacant upper floors as subject to contract and exclusive of VAT reflecting a NIY of 5.50% assuming standard Comparative English EPC Rating D (81) 12 residential flats. purchasers costs of 6.10%. REF: 15/01982/DC - Granted KFC In addition, our client is offering the sale of the upper floors by way of separate negotiation. Use of vacant offices as 9 EPC Rating E (77) An application to convert the upper floors into 12 residential units has been submitted to residential apartments. Comparative English EPC Rating C (65) Glasgow City Council (18/00186/FUL). Further information can be accessed via the data room. 12/02228/DC - Granted Use of restaurant as restaurant VAT and ancillary takeaway. Contact The property has been elected for 02/01528/DC - Granted For further information or to arrange an inspection please contact: VAT. It is anticipated that the sale will Change of use from Class 1 be treated as a transfer of a going Shops to Class 3 Restaurants Andrew McGregor Douglas Binnie concern (TOGC). and cafés. E: [email protected] E: [email protected] T: +44 20 7861 1531 T: +44 141 566 0885 M: +44 7970 971 538 M: +44 7775 561 334

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. September 2018.