Modern Nursery Investment FOR SALE Nursery Burghmuir Place | Inverurie | Aberdeenshire | AB51 4FW Investment • Modern, purpose built nursery extending to a gross internal • New 20 year lease from 28 February 2019 at an initial area of 11,055 sq ft over two buildings. rental of £110,000 per annum. • Located within the affluent commuter town of • Five yearly upward only rent reviews to CPI with a Summary Inverurie, Aberdeenshire. cap of 3% per annum compounded. • Established nursery business registered for 173 children Offers in excess of £1.70 million are sought with strong performance critera. showing a net initial yield of 6.10% after allowing • Let to one of the UK’s largest nursery operators Busy Bees. for standard purchaser’s costs. Location INVERURIE NEWMACHAR Inverurie is a prosperous Aberdeenshire town situated in the valley of the River Don. A popular and growing A90 commuter town, its main industries other than service A96 and commerce are agriculture and oil. Aberdeen is Scotland’s third most popular city since the discovery of BALMEDIE North Sea oil in the 1970’s and is known as the oil and gas capital of Europe.
Inverurie has good transport links by both, road and rail. KINTORE From Aberdeen, the journey to Inverurie takes 35 minutes A90 by car via the A96 or 25 minutes by train. Aberdeen International Airport can be reached in just 15 minutes by ABERDEEN car. The A96 connects into the newly opened Aberdeen AIRPORT Western Peripheral Route (AWPR) at Dyce and provides A96 BLACKBURN easy access to both the north and south of the city. DYCE BRIDGE The current population of Inverurie is around 12,750. R D OF DON N R
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M T A A96 H T of going through planning and development therefore the H R G S L T A U R W area is expected to grow further in the coming years. O U B R R A96 D L BURGHMUIR A R CIRCLE E BURGHMUIR WESTHILL H KINGSWELLS P E PLACE I V I R E R P D RD L N ABERDEEN HAL N
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A90 A90 Situation A956 The property is located on the south side of Burghmuir Place at the junction with Burghmuir Circle. The site is close to the busy A96 trunk NEWTONHILL road connecting Aberdeen to Inverness. The nursery subsequently attracts young children from the immediate locality, as well as from NURSERY OUTDOOR PLAY AREA parents who commute to their workplace in Aberdeen. Nursery
The property comprises a purpose built nursery which trades over Externally, both buildings are set within their own ground which two buildings which were built in 2010 and 2014. They are both could easily be separated if required and are separated at present two storey purpose built childrens nurseries, one of steel frame by car parking. There is a drop off area to the front of the property, construction and the other of timber framed construction, both with accessed from Burghmuir Place with private parking available for brick/block walls with rendered finish under either a mono pitched circa 12 cars. To the outside, there are various secure play areas Description or curved or pitched metal sheeted roof. Windows on the upper with specialised play equipment. levels are positioned in an irregular pattern to make daylight and visibility possible for all age heights. The properties are connected to mains electricity, gas, drainage and water supplies. Heating is via gas central heating systems in both buildings.
NURSERY CHILDRENS’ TOILETS
NURSERY GROUND FLOOR PLAYROOM PRE-SCHOOL BUILDING Nursery
Accommodation
SIZE (GIA) SIZE (GIA) BUILDING REGISTRATION SQ M SQ FT Nursery GF 376 4,047
Nursery FF 301 3,240
Nursery Total 677 7,287 101
Pre-school 175 1,884
Pre-school 175 1,884
Pre-school Total 350 3,767 72
SOFT PLAY AREA GRAND TOTAL 1,027 11,055 173
The nursery has recently been purchased by Busy Bees Nurseries, one of PRE-SCHOOL BUILDING: the UK’s largest nursery operators. The business was established in 2010 Pre-school 3-4 years 36 places when it opened as a childrens day nursery and quickly established as a Pre-school 4-5 years 36 places mature business within the local marketplace. In 2014 an additional building The Nursery was erected which has increased the capacity to 173 children: The business has continuously traded since opening and is well regarded within the local community. This is shown in the good occupancy levels operated by the NURSERY BUILDING: business. The business is in partnership with Aberdeenshire Council to offer funded 0 to 2 years 38 places places. The opening hours are 7.30am to 6pm and trades all year round, other than 18 months to 2 years 9 places public holidays. 2-3 years 54 places (option to include 16 pre-school children) The nursery’s last inspection by the Care Inspectorate achieved GOOD grades and has also passed Education Scotland inspections. Nursery Tenure Both buildings are held on a 125 year ground lease with Aberdeenshire Council which commenced on 22 September 2008 (Nursery) and 31 March 2014 (Pre- school), the annual rent if requested is £1.00 per annum.
NURSERY OUTDOOR PLAY AREA Tenancy The property is let to Les Enfants Nursery (Scotland) Limited with a guarantee by Busy Bees Nurseries (Scotland) Limited on a Full Repairing and Insuring basis subject to a Schedule of Condition for a term of 20 years from 28 February 2019 at an initial rental of £110,000 per annum. The lease incorporates five yearly rent reviews linked to CPI with a cap of 3% per annum compounded. No VAT is payable on the rent due to nurseries being VAT exempt.
PRE-SCHOOL OUTDOOR PLAY AREA Nursery
FYE FYE FYE Covenant 21.12.2019 21.12.2018 31.12.2017 (£000’s) (£000’s) (£000’s) Busy Bees was founded in 1983 and are suggested to be the largest nursery group in the UK with 268 settings and approximately 24,500 places. Their acquisitions of Sales/Turnover 15,150 14,374 10,858 Leap Frog, Tibbitots and Just Learner has aided their rapid Profits/Loss (before growth. In 2014, the Ontario Teacher’s Pension Planned 2,128 1,709 3,974 purchased Busy Bees in a £220 million deal. taxes)
Les Enfants Nursery (Scotland) Limited is the trading Total Assets 49,954 43,994 38,389 entity of the property. The lease is guaranteed by Busy Bee’s Nurseries (Scotland) Limited (D & B rating 4A1). Tangible Net Worth 24,800 22,702 20,963 NURSERY MAIN RECEPTION A summary of their financials is shown in the table adjacent:
VAT The property is not elected for VAT purposes and therefore VAT will not be applicable to the sale.
Investment Proposal Our clients are seeking offers in excess of £1.70 million which reflects a Net Intial Yield of 6.10% after allowing for standard purchaser’s costs.
BABIES EATING AND MESSY PLAYROOM Further Information For further information or to arrange viewing please contact:
Gordon Pirie & Company Ltd 1 Albyn Terrace, Aberdeen AB10 1YP
Gordon Pirie t. +44 (0) 1224 644 711 m. +44 (0) 7525 240 453 e. [email protected]
Important Notice. Gordon Pirie & Company Ltd, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Gordon Pirie & Company Ltd have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. May 2021