EAST KILBRIDE RETAIL PARK

RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION MAVOR AVENUE, G74 4QX 2 Prime retail investment sale with an attractive tenant profile

INVESTMENT SUMMARY

EAST KILBRIDE IS ’S MOST SUCCESSFUL NEW AND FORMS PART OF THE CONURBATION.

PART OF A DOMINANT RETAIL WAREHOUSING CLUSTER SERVING A PRIMARY RETAIL CATCHMENT OF 144,000 PEOPLE.

MODERN RETAIL PARK COMPRISING THREE UNITS, EXTENDING TO A TOTAL OF 34,898 SQ FT (GIA).

RETAILER LINE-UP OF HOME STORE + MORE, CARPETRIGHT AND BENSONS FOR BEDS.

DEMAND FOR THE PARK HAS BEEN DEMONSTRATED BY THE RECENT ARRIVAL OF HOME STORE + MORE AND IN THE WIDER PARK BY THE ARRIVAL OF PETS AT HOME, THE RANGE, HALFORDS HOME BARGAINS AND ALDI.

THE PROPERTY PROVIDES AN ANNUAL RENTAL OF ￡849,965 PER ANNUM.

ATTRACTIVE WAULT TO EXPIRY OF 7.31 YEARS AND TO BREAK OF 6.54 YEARS.

WE ARE INSTRUCTED TO SEEK OFFERS OVER ￡8,000,000 FOR OUR CLIENT’S HERITABLE INTEREST IN THE PROPERTY.

A PURCHASE AT THIS LEVEL REFLECTS A NET INITIAL YIELD OF 9.96%, ALLOWING FOR PURCHASER’S COSTS OF 6.66%.

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 3 Excellent accessibility to the M77, M74 and M8 which form the heart of the country’s motorway network.

10 miles south east East Kilbride has a of Glasgow city population of over A81 M80 A879 centre 75,000 A82 A803 1 13 A814 M8 M8 Coatbridge LOCATION M8 GLASGOW A8 Dennistoun A89 20 Baillieston 8/19 1 A89 East Kilbride is part of the Glasgow conurbation, approximately 10 miles 22 M8 A8 south east of Glasgow city centre. It is the largest town within the A8 M8 A74 M73 South council area and has a population of over 75,000. 1A M77 3 M74 M74 4 2 A736 A725 A749 COMMUNICATIONS A730 Bellshil A77 A724 B7071 East Kilbride has excellent accessibility to the M77, M74 and M8 which B766 form the heart of the country’s motorway network. The A725/A726, on 3 5 A727 which the subject property is situated is the principal east/west route A749 through East Kilbride and forms the Glasgow Southern Orbital which Carmunock Blantyre M74 links the town with the M77 to the west and the M74 to the east. EAST KILBRIDE A727 RETAIL PARK A725 A724 As part of the Glasgow City Deal, there will be improvements made M77 HAMILTON to transport infrastructure, including upgrades to the A726, the M77 A725 and the M8. This will make East Kilbride an even more attractive East A726 Kilbride location to residents and it will also make East Kilbride Retail Park even

more accessible. 5 A726 A723

Eaglesham A726

EASTEAST KILBRIDE KILBRIDE RETAIL RETAIL PARK PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 4

KINGSGATE RETAIL PARK

PETROL

EAST KILBRIDE RETAIL PARK A749

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 5

SITUATION EAST KILBRIDE SHOPPING CENTRE East Kilbride Retail Park is situated on the north side of the town, on the junction with the main arterial routes to Glasgow (A749) and to Hamilton, and (A725).

East Kilbride Retail Park lies beside Kingsgate Retail Park, which provides over 268,821 sq ft of retail warehousing, anchored by Sainsbury’s with other tenants including TK Maxx, Boots, Nike, M&S Simply Food and Next. BARRATT HOMES NEW DEVELOPMENT Adjacent to the subjects is a 106,000 sq ft B&Q . Opposite the parade is another retail parade let to The Range, Halfords, Pets at Home and Currys/PC World. There is also a neighbouring new Mavor Stewartfield Avenue Way development let to Aldi and Home Bargains.

A749 The retail warehouse provision on the south side of Glasgow is limited, with the 166,350 sq ft Auldhouse Retail Park being the main park, which is 7 miles away and a 23 minute drivetime. KINGSGATE RETAIL PARK Immediately to the south of East Kilbride Retail Park EAST KILBRIDE is a new housing development on the site of the old RETAIL PARK Rolls Royce factory, creating 477 new homes.

A749

A749 A725

Excellent road links

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 6

East Kilbride has a primary retail market population of 144,000 (Source: PROMIS).

DEMOGRAPHICS Proposed Housing Development Falkirk between 2017-2022 Greenock The East Kilbride catchment population includes a higher than average proportion In between 2017-2022 GLASGOW (17%) of older working age adults aged there are plans for a further 3,800 new Paisley 45-64 (Source: 2018 CACI), due to it being an private sector homes and 1,100 new attractive location for families. This flows affordable homes. Part of this housing need is Hamilton through to there being a stable number of satisfied by the redevelopment of the East Kilbride 15-24 year olds which is in line with the adjacent former Rolls Royce site, which will UK average. accommodate 477 homes.

Within a 10 minute drive time catchment of Now that key infrastructure funding has been the retail park, the annual expenditure agreed as part of the ￡1.13 billion Glasgow estimate is around ￡589,355,364 (Source: 2018 City Region City Deal, more than 2,500 new CACI). Within a 10-20 minute drive time homes are set to be built in East Kilbride Ayr catchment of the retail park, the annual post 2022. expenditure estimate is around ￡2,391,530,180 (Source: 2018 CACI).

The retail catchment includes the wealthy suburban areas of Glasgow, which include Giffnock, and Whitecraigs. EAST KILBRIDE - Drive time catchment

0-10 miles

10-20 miles

20-30 miles

30-40 miles The retail catchment Plans for a further 3,800 includes the wealthy new private sector 40-50 miles suburban areas of homes and 1,100 new Glasgow affordable homes

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 7 Modern retail park comprising three units, extending to a total of 34,898 sq ft (GIA).

DESCRIPTION

The subject property comprises a parade of three retail warehouse units of steel frame construction, with the walls a combination of blockwork and composition cladding panels. The units were originally developed in 2005 alongside the 106,000 sq ft B&Q. Units 1 and 3 have tenant installed mezzanines.

The units are accessed from Mavor Avenue. The terrace has 171 allocated car parking spaces, providing a ratio of 1:204 with the adjoining B&Q having a further 422 spaces. The units are serviced via Mavor Avenue onto a fully enclosed yard to the rear of the terrace.

171 car parking spaces

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 8

TENANCY SCHEDULE

The current rent is ￡849,965 per annum. Modern retail park comprising three units Attractive WAULT to expiry of 7.31 years and to break of 6.54 years.

UNIT TENANT AREA (SQ FT) LEASE START LEASE EXPIRY BREAK RENT REVIEW RENT (PA) RENT (PSF) COMMENTS

Unit 1 Ogalas UK Limited 20,443 13/09/2005 12/09/2025 - 13/09/2020 ￡450,000 ￡22.01 57 weeks rent free from the date of the assignation Guarantor – Ogalas Unlimited Company (10/04/2018) in the form of a discounted rent for the first t/a Home Store + More 4 years. Vendor to top-up. Tenant option to extend lease for 7 years on expiry, rent payable to be on open market basis subject to a minimum rent of ￡307,500 per annum. An additional installed mezzanine of 5,717 sq ft.

Unit 2 Carpetright Plc 10,227 13/09/2005 12/09/2030 - 13/09/2020 ￡265,000 ￡25.91

Unit 3 Steinhoff UK Group Properties Ltd 4,228 10/07/2006 09/07/2026 10/07/2021 10/07/2021 ￡130,715 ￡30.92 A full mezzanine floor has been added by the tenant t/a Bensons for Beds of 3,964 sq ft.

Display Phoenix Outdoor Advertising Ltd - 31/01/2012 30/01/2021 - - ￡4,250 - Continuing by tacit relocation. Board

34,898 ￡849,965

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 9

COVENANT STRENGTH

COMPANY NAME COMPANY NO. YEAR END TURNOVER PRE-TAX PROFIT NET WORTH Demand for the Park has been

Ogalas UK Limited 10777605 31st Jan 2019 ￡3,032,413 (￡1,259,122) (￡1,320,176) demonstrated by the recent arrival of Home Store + More Ogalas Unlimited Company 382 168 31st Jan 2016 €96,202,710 €12,011,869 €25,072,864 and by the arrival of Aldi, 31st Jan 2015 €78,728,332 €8,821,976 €28,589,660 Home Bargains, Pets at Home, € € € 31st Jan 2014 64,461,032 5,125,602 20,957,848 The Range and Halfords within Carpetright Plc 02294875 27th Apr 2019 ￡386,400,000 (￡24,800,000) ￡20,100,000 wider East Kilbride Retail Park. 28th Apr 2018 ￡443,800,000 (￡70,500,000) (￡7,700,000)

29th Apr 2017 ￡457,600,000 ￡900,000 ￡20,700,000

Steinhoff UK Group Properties Limited 01024575 30th Sep 2017 ￡76,966,000 ￡2,120,000 ￡33,632,000

24th Sep 2016 ￡96,124,000 ￡8,208,000 ￡28,005,000

27th Jun 2015 ￡80,832,000 ￡6,332,000 ￡22,123,000

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION 10

ENUE LD AV RTFIE TENURE VAT EWA ST The property is held on a heritable title (Scottish equivalent of The property has been elected for VAT and therefore VAT will be English Freehold). payable on the purchase price. However, it is anticipated the sale El Sub Sta will be treated as a Transfer of a Going Concern (TOGC).

AML EPC A successful bidder will be required to provide AML information in

IDE accordance with HMRC regulations when Heads of Terms are agreed. EPCs are available on request. K KILBRAR ST EA TAIL P RE

PLANNING

The site was originally given planning permission in September 2004 for the development of two non-food retail warehouse units with further permission granted for a third unit in December 2005. The original consent limited the use of the units to the sale of D.I.Y goods, furniture, carpets, electrical goods, household furnishing and motor accessories. In 2012 the landlord obtained consent to broaden the permitted uses for the occupancy of Toys R Us of Unit 1 to include the sale of toys, games, sports equipment, cycles and baby products. In 2015, Toys R Us successfully applied to further widen the permitted uses of their unit to include the retail sale of fashion accessories from not more than 25 sq m of the unit.

SERVICE CHARGE

The current service charge budget to the year end 30th April 2020 is ￡24,500. This reflects a cost to the tenants of ￡0.70 per sq ft based on the areas within the tenancy schedule on Page 8.

EAST KILBRIDE RETAIL PARK RETAIL WAREHOUSE INVESTMENT IN A PRIME LOCATION PROPOSAL

We are instructed to seek offers in excess of ￡8,000,000 (Eight Million Pounds Sterling) exclusive of VAT for the benefit of our client’s interest.

A purchase at this level would reflect a net initial yield of 9.96%, after allowing for purchaser’s costs of 6.66% based on Scotland’s Land and Buildings Transactions Tax (LBTT).

FURTHER INFORMATION

For further information or to arrange an inspection, please contact:

STUART SPALDING STEPHEN BIBBY KYLE STUART dd: +44 (0) 141 304 3243 dd: +44 (0) 131 222 4523 dd: +44 (0) 141 304 3205 m: +44 (0) 7717 178 284 m: +44 (0) 7799 361 290 m: +44 (0) 7827 622 303 e: [email protected] e: [email protected] e: [email protected]

MISREPRESENTATION ACT. Cushman and Wakefield LLP on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: (i) These particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) the property is offered subject to contract and unless otherwise stated all rents and outgoings are stated exclusive of VAT. (iv) Floor areas, measurements or distances given are approximate. (v) Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. (vi) Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. February 2020. Alamo Design 01924 471114.