LEISURE INVESTMENT OPPORTUNITY MECCA BINGO, DUNDEE DOUGLASFIELD LEISURE PARK | DOUGLAS ROAD | DUNDEE | DD4 8JX LEISURE INVESTMENT OPPORTUNITY MECCA BINGO | DUNDEE 02
INVESTMENT SUMMARY
• The property comprises a purpose built bingo hall extending to 3,281 sq.m. (35,337 sq.ft.) with 223 car spaces, let to Mecca Bingo Ltd (D&B rating of 5A1).
• The site extends to a total of 3.37 acres reflecting a low site coverage of c.21%.
• Located in a well-established out of town retail and leisure zone on the North East side of Dundee city centre. Directly adjacent to Kingsway East Leisure Park which is anchored by Odeon Cinema (who have recently committed to a 10 year extension to their existing lease).
• There has been significant investment in Dundee in recent times which forms part of a wider, longer term plan to regenerate and reinvent itself as a national cultural centre and hub.
• Other occupiers in the immediate vicinity include Wickes Extra, McDonalds, ASDA, Pets at Home, Bensons for Beds and Archers Sleep Centre.
• Heritable Interest (Scottish equivalent of English Freehold).
• Let to Mecca Bingo Ltd subject to a schedule of condition at £319,864 per annum (£9.05 per sq.ft.) until September 2031 (12 years unexpired).
• Tenant has recently refurbished and agreed a new 10 year extension to their existing lease.
• Lease is subject to RPI linked rent reviews (collared and capped at 0.5%-2.5% per annum) in September 2023 and 2028.
• We are instructed to seek offers in excess of £3,754,000 for our client’s Heritable interest. A purchase at this level would provide a Net Initial Yield of 8.00%, rising to a reversionary yield of 9.06% in 2023 and 10.25% in 2028, allowing for purchaser’s costs of 6.49% and reflects a low capital rate of £106 per sq.ft. LEISURE INVESTMENT OPPORTUNITY MECCA BINGO | DUNDEE 03
LOCATION Dundee benefits from a central geographic location, with The newly developed V&A International Centre for Design of Abertay Dundee now also a thriving community for young 90% of Scotland reachable within a 90 minutes’ drive. opened in September 2018 and is already widely recognised games designers. The city is located on the east coast of Scotland, South of across the world for its distinctive yet exceptional Aberdeen, North East of Glasgow and North of Edinburgh. architecture. Since its opening, a 42% increase in visitor Dundee Regeneration Often referred to as the ‘City of Discovery’, the population numbers to the waterfront area has been achieved with has grown to around 150,000 people and boasts a catchment other attractions in the region also recording significant Dundee is a dynamic and progressive city with a strong of over 600,000 within an hour’s drive. increases in tourism. In 2018, the Wall Street Journal ranked cultural identity and is steeped in a history of innovation Dundee as number 5 on its ‘Worldwide Hot Destinations’ list. There is an excellent motorway network with the A90/M90 and creativity. In recent years Dundee has become providing direct access to Aberdeen (north) and Edinburgh Dundee is a rejuvenated and exciting regional hub for a thriving cultural destination attracting increasing (south). Furthermore, Dundee railway station is located employment, boasting a diverse economy with a number numbers of tourists year on year. It is famed for its digital within the city centre and provides direct rail services of employment sectors represented. Digital media in media industry, internationally respected and renowned to Perth, Edinburgh, Glasgow and Aberdeen. Dundee is Dundee is highly regarded and the city has a strong universities and its vibrant design and creative sectors. Scotland’s fourth largest city. reputation in the world’s gaming industry with the University