Regent Centre, Kirkintilloch, G66 1JH

A Shopping Centre Investment Opportunity Regent Centre, Kirkintilloch

Investment Summary

• Kirkintilloch is a desirable commuter town, 9 miles north east of Glasgow.

• Kirkintilloch forms the dominant town centre offering within the East Dunbartonshire area, including the nearby conurbations of Lenzie and Bishopbriggs. The catchment population within 5 miles is 150,375 people.

• The Regent Centre forms the prime retailing pitch and contains the only Tesco within the area.

• The centre provides a covered mall arranged over two levels and extends to 79,072 sq. ft. The two storey roof top car park, which provides 190 free spaces, forms the main parking provision in the town.

• Footfall is 2.3 million people per year.

• Anchored by a 33,353 sq. ft. Tesco Metro, Boots, Superdrug and Poundland.

• Gross income of £940,917 per annum and a net income of £681,944 per annum.

• Held on a long leasehold expiring on 31 December 2139, with the ground rent being 10% of the rent receivable.

• Attractive income profile with the potential to drive the asset forward through active management.

• Offers in excess of£6,425,000 (Six Million Four Hundred and Twenty FIve Thousand Pounds Sterling) representing a net initial yield of 10.00% after allowing for purchaser’s costs of 6.15% based on Scotland’s Land and Buildings Transaction Tax (LBTT). Location Situation

Kirkintilloch is a desirable commuter town within East Kirkintilloch is served by Lenzie Railway Station which is located The Regent Centre is situated in the heart of Kirkintilloch town Dunbartonshire, 9 miles from Glasgow and 21 miles south west of 1.4 miles south of the Regent Centre. Frequent bus services connect centre with the main entrance fronting the Cowgate, which is the Stirling. East Dunbartonshire has a population of 105,026 (Census Kirkintilloch with Glasgow, Stirling and neighbouring towns. prime retailing thoroughfare in the town. Surrounding occupiers 2011) and within a 5 minute drive time of the centre the population include New Look, M&Co and Bank of Scotland. A82 A9 A92 is 150,375 (2012 population estimate Census 2011). Woodilee Village between Kirkintilloch and Lenzie is currently subject to significant residential development. 900 new homes will The town benefits from excellent transport links with easy access be built on 210 acres of land between Lenzie and Kirkintilloch, where A91 to Glasgow, making it an attractive place for commuters. The M80 Persimmon, Miller, Charles Church and CALA are providing a range M90 Stepps bypass forms a crucial part of Scotland’s motorway network of modern flats and family homes. The new village of Woodielee will A9 connecting Glasgow and the west of Scotland with Stirlingshire, considerably increase the catchment of the RegentA84 Centre. Falkirk and Grangemouth. Glenrothes

A91 A811 Stirling A92 A82 M9 Kirkcaldy Dunfermline Kirkintilloch M80 A985 Edinburgh Denny Glasgow Kirkintilloch A1 Falkirk M9 A90 EDINBURGH Newcastle Greenock A8 Bearsden M80 Cumbernauld M8 A1 Bishopbriggs Clydebank Livingstone A720 M8 A78 Paisley Airdrie Manchester A737 Glasgow

A725 Motherwell Birmingham Hamilton East A702 A703 M77 Kilbride A7 London A72 Kilmarnock Irvine A71 A78 A77

Douglas M74 A68 Prestwick Ayr A70 H R E E T 4 G 7 O R R 6 1 L C T A I 1 C C S M A / D I H T D EN S T N T N A E E O S D E N N O H U L R O O F T 7 J R & R 3 LL P Regent Centre, KirkintillochS A AR B 7 C S N 5 K E U E IO N H R T C N R I A U IS E Ground Floor `N S P D E E O F R H 8 A R S 7 C E C Y N IT A R C A 9 H 1 C

Y 9 THE HOSPICE SHOP C 3 H A F S M 1 H R R B A A N 9 H H O C P S 9 P M T O O EN - E H G 2 C 1 O C S P 9 T A 0 C N T 1 D A EL E 1 R N V R E O T E A F 3 N M R T IC 1 E E T E F T W 0 S B F E 3 U O R G R M O U G 1 A C IN T IN 4 G 0 & TT H 5 S E T P B O A I R L H C C A T N 5 A E N T 1 / C E 0 T O A N I E C E 9 A T W A R H T T V N E S S S 1 E U S S 8 1 G E R P A A R N 1 A N P 1 B P B A F E X O - E L S 1 /W N A E M 1 S 6 P O G O 3 / G V 1 C S & L C E N F O P I P A E T S O L BRIGHTHOUSE 1 A O V Y L S S G E D L E 1 E E 2 R 5 W R C I I E I O D S S S R N I 0 T C I A T T A H R D T T I S 1 N N A 7 1 E A R P L 9 C Y 4 A IT E E 15 1 1 V IL D S T B N T 8 2 A LA N L 1 P T R FT A A A O A I C C 1 C C H L A I S C E T S 2 S H N V P E N 3 S O R IA I P - 1 IN X IC M E T 1 2 E JEWELLERS P 7 S O 9 2 G D 5 - R ROBINSONS THE A 1 C 2 9

1 0 S IR TA S T N A C A V S E R V IC E K Y N 1 A A 0 R T B 0 D D Description E N A E L 1 R T 0 O E 4 T T C A & S G E 1 The centre was developed in 1991 and forms a covered mall S W N E F O O TR 0 O C H N R P E R 6 E E K C H O 1 comprising 17 retail units anchored by supermarket. 10 of the retail N P C C R R M 0 A O LA & E B C L S 8 O A L G I N units have a frontage on to the Cowgate. Arranged over ground and T K A N O S C L LI N A O A S first floors the centre provides a net lettable area of approximately S C Y I T R U E A L 79,072 sq. ft. (7,346 sq. m.). The main entrance to the mall is situated M E A A B D S on the Cowgate and there is through access into the mall from E D LY Tesco and Poundland. Car parking is provided over 2 levels offering C 190 spaces. The car park was resurfaced in October 2013.

V A C A N T R H R E E T 4 G 7 O R R 6 1 L C T A I 1 C C S M A / D I H T D EN S T N T N A E E O S D E N N O H U L R O O F T 7 J R & R 3 LL P S A AR B 7 C S N 5 K E U E IO N H R T C N R I A U IS E First Floor `N S P D E E O F R H 8 A R S 7 C E C Y N IT A R C A 9 H 1 C

Y 9 THE HOSPICE SHOP C 3 H A F S M 1 H R R B A A 9 H H N C P SO 9 M T P O N -O E 6 E 2 E 9 H C 1 O C P R 9 G S - T 1 A 0 C N T O 1 T L D 1 A N 1 E E R S V R E O T E A F 3 N M R T IC 1 E E T E F T W 0 S B F E 3 U E O R L G G R M O O IN Y G 1 A C S D N IN U IN G 0 & A A T T 4 R P E D T H 5 S T M I E T P C O STORES FOR GROUND FLOORA RETAIL UNITS I O I O B E R L H C O S F C C H R A V T 5 I N T 1 /A E S A F N C E 0 T P O A N E QEROI E O A R C E 9 R T C W A T FASTH T W V N E S FOODS S S 1 E U S S 8 IR 1 G E R P A A R N 1 A A N P 18 T 1 B P B A F E X O - S E L S 1 /W N A E M 1 S 6 P 3 O /G S V O C S G EA 1 & L C E N TIN F O P I G P A E T S O L BRIGHTHOUSE 1 A O V Y L S S G E D L E 1 E E 2 R 5 W R C I I E I O D S S S R N I 0 T C I A T T A S H R D T T I S R 1 N N A I 7 1 E A R P L A 9 C Y T 4 R A IT E E S 15 1 OOF 1 V IL D S T B N T 8 2 A LA N L 1 P T R FT A A A O A I C C 1 C C H L A I S C E T S 2 S H N V P E N 3 S O R IA I P - 1 IN X IC M E T 1 2 E JEWELLERS P 7 S O 9 2 G D 5 - R ROBINSONS THE A 1 C 2 9 S IR A 1 T 0 SS IR TA S T N A C A V S E R V IC E K Y N 1 A A 0 R T B 0 D D E N A E L 1 R T 0 O E 4 T T C A & S G E 1 S W N E F O O TR 0 O C H N R P E R 6 E E K C H O 1 N P C C R R M 0 A O LA & P E B C L S 8 O A L G I N T K A N O S C L LI N A O A S S C Y I T R U E A L M E A A B D S E D LY C

V A C A N T R Regent Centre, Kirkintilloch

Tenancy Schedule

The centre is well secured with national retailers accounting for 94% of the gross income. Tesco is the main anchor and accounts for 49% of the current gross income.

Next Rent Address Tenant Name Lease Start Lease Expiry Review Area sq ft ITZA Rent (pa) Comment

Unit 1 TUI UK Ltd t/a Thomson 16-Dec-91 21-May-16 - 1,402 683 £32,720 -

Unit 2 Done Bros (Cash Betting) Ltd t/a Betfred 07-Jul-06 06-Jul-21 07-Jul-16 1,864 883 £39,000 -

Tenant is in administration, lease remains for rates Unit 3 Cumming (Leven) Ltd t/a Turret Clothing 01-Mar-93 21-May-16 - 2,455 1,015 - mitigation purposes.

Unit 4 Vacant - - - 2,009 895 - -

Unit 5 Brighthouse - - - 958 783 £15,000 New 10 year lease with a TBO in years 3 and 5, dates TBC.

Unit 6 Poundland Limited 07-Jun-10 06-Jun-20 06-Jun-15 14,532 3,431 £90,000 Service charge cap £5,000 pa.

Unit 7 Vacant - - - 1,726 681 - -

Unit 8 Optical Express Ltd 27-Oct-99 26-Oct-15 - 1,633 724 £32,900 Tenant looking to regear.

Unit 9 Boots the Chemist Ltd 18-Feb-91 17-Feb-16 - 7,047 3,567 £85,000 Do not contribute to marketing or management fee.

Unit 10 Scottish Power UK Plc 10-Jun-91 21-May-16 - 1,880 922 £41,750 Tenant not in occupation.

Unit 15 Brian Robinson t/a Robinsons the Jewellers 01-May-13 30-Apr-16 - 254 254 £6,873 Occupy under licence.

Occupy under licence rolling on month to month, inclusive of Unit 16 - 18 Fashion Clothes Ltd 05-May-14 31-Jan-15 - 4,572 2,762 £14,040 service charge. .

Unit 19 Superdrug Stores Plc 19-Aug-91 21-May-16 - 3,999 1,340 £62,000 -

Unit 20 Jean Logan t/a Puppy Love Florist 31-Oct-91 21-May-16 - 258 258 £5,000 -

Kiosk John Flanagan t/a Sole Trading Co 30-Jan-04 29-Jan-16 - 213 213 £7,500 -

Food Court Qero Fast Food 04-Feb-13 03-Feb-18 - 633 534 £20,833 -

Supermarket Tesco Stores Ltd 05-Nov-90 20-May-16 - 33,353 - £448,250 Area GIA. Managers believe shop refit scheduled.

ATM Machine Tesco Tesco Personal Finance Plc 01-Sep-01 20-May-16 01-Sep-15 - - £7,423 Break options annually on 1st September.

Commercialisation ------£32,628 -

79,072 £940,917 Income Tenure Service Charge

The gross income is £940,917 per annum. Net of current The subject property is held on a long leasehold from Kames The service charge budget for the year ending 31 December 2015 occupational shortfalls the net income is £681,944 per annum. Trustee Companies for a term of 150 years from January 1990 with is £438,151, which equates to a rate of £5.54 per sq ft. The current shortfalls are £258,973 per annum. A full breakdown approximately 126 years unexpired. The ground rent due is geared of the non-recoverables can be provided on request. to 10% of the occupational rents receivable during each year less permitted deductions. Footfall Commercialisation income accounts for £32,628 per annum.

The head rent for the financial year to 31 December 2014 was The footfall for 2014 was 2,323,734 and in the first two months of

k o

£82,936.36. 2 2015 the footfall figures were up 3.6% on the same period of 2014. 5

Y o r Income Profile* k 3 P la 50.6m c Su 7 T e 1 F

1% r Town

g O e R 2

r Hall y C t

D o

ly 1 Tesco Stores Ltd A 0 F O a R 4% m 7 B 5 il 4% Independent a y n a 4% 's n Ca d 8 Poundland Limited 7 to 5% 9 Brighthouse 1 Regent 9 18 53.6m 3 Gardens D Fn to 9 7% Boots the Chemist Ltd 7

1 49% Superdrug Stores Plc TCBs 0 6 1 Hall 2 1 t to 1 o 22 0 9% Scottish Power UK Plc 5

1 Done Bros (Cash Betting) Ltd 0 9 to 2% 1 1 3 10% Optical Express Ltd 4 Car Park 1 Tui UK Ltd t/a Thomson 1 6% The Regent Centre t 5 1 o 2 6 1 Tesco Personal Finance Plc 51.0m 2

1 2 3

7 * Excludes Commercailisation Ps C O

tre W 5 en Hall G C A

TE 3

PW R

Roof Car Park 1 a % of Total Income* 0 m

p 1 Hall 3 t 7 1 o 4

6% 22 0 1

8 8

3 0

2 1

4 o

1 0

7 to R 1 a m

p LB

T 0

National Retailers E 4 1

E 4 6 1

TR 4 1 1

o o

£854,043 t 1 7

2 C 7 o 50 u n c il O ff ic

Independent Retailers e

6 1

62 1 £54,246 O E l X S t F u ur 6 O b o 6 R T S C EE ta e D TR ni S ar 94% C

T 7

E 3 t 0m 25m E 50m 75m 7 o R T 9 S 5 N Lairdsland overnment EE U Primary School Q Regent Centre, Kirkintilloch

Covenant

TESCO STORES LIMITED (Company Number: 00519500) has an BOOTS UK LTD (Company Number: 00928555) has an Experian POUNDLAND LIMITED (Company Number: 02495645) has an Experian score of 83 which provides a Low Risk. score of 100 which provides a Very Low Risk. Experian score of 100 which provides a Very Low Risk.

26 Feb 2012 25 Feb 2013 23 Feb 2014 31 Mar 2012 31 Mar 2013 31 Mar 2014 1 Apr 2012 31 Mar 2013 30 Mar 2014 Year Ending Year Ending Year Ending (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s) (000s)

Turnover 41,981,000 42,662,000 42,547,000 Turnover 6,354,000 6,204,000 6,340,000 Turnover 780,147 880,491 997,803

Pre-Tax Profit 2,126,000 921,000 1,696,000 Pre-Tax Profit 240,000 452,000 507,000 Pre-Tax Profit 32,026 34,313 41,017

Total Net Worth 6,894,000 3,113,000 3,038,000 Total Net Worth 234,000 430,000 456,000 Total Net Worth 90,342 119,042 96,235 SUPERDRUG STORES PLC (Company Number: 00807043) has an Experian score of 100 which provides a Very Low Risk.

31 Dec 2011 29 Dec 2012 28 Dec 2013 Year Ending (000s) (000s) (000s)

Turnover 1,049,128 1,021,021 1,010,212

Pre-Tax Profit 5,517 -3,977 28,982

Total Net Worth 124,652 106,905 122,235 H R E E T 4 G 7 O R R 6 1 L C T A I 1 C C S M A / D I H T D EN S T N T N A E E O S D E N N O H U L R O O F 7 J R & R T L P S 3 L R Regent Centre, Kirkintilloch A A B 7 C S N 5 K E U E IO N H R T C N R I A U IS E `N S P Asset Management D E E O F R H 8 A R S 7 C E C Y N IT A R C A 9 H 1 C There are a number of asset management opportunities to improve Y 9 THE HOSPICE SHOP C 3 H A the income stream and capital value of the Regent Centre including: F S M 1 H R R B A A N 9 H H O C P S 9 P M T O O EN - E H G 2 C 1 O C S P 9 T A 0 C N T 1 D A In administration EL E 1 R N V R E O T E A F 3 N M R T IC 1 E E T E F T W 0 S B F E 3 U O R G R M O Seek to re-gear the Tesco lease as they have confirmed U G 1 A C IN T IN 4 G 0 & TT H 5 S E T P that previous proposals to move to a larger store have now B O A I R L H C C A T N 5 A E been abandoned N T 1 / C E 0 T O A N I E C E 9 A T W A R H T T V N E S S S 1 E U S S 8 1 G E R P A A R N 1 A N P Let vacant units through active marketing 1 B P B A F E X O - E L S 1 /W N A E M 1 S 6 P O G O 3 / G V 1 C S & L C E N F O P I P A E T S O L BRIGHTHOUSE 1 A O V Y L S S G E D L E 1 E E Expiry 2015 - Enhance income security through re-gears 2 R 5 W R C I I E I O D S S S R N I 0 T C I A T T A H R D T T I and lease extensions S 1 N N A 7 1 E A R P L 9 C Y 4 A IT E E 15 1 1 V IL D S T B N T 8 2 A LA Expiries in 2016 provide opportunities to re-gear with N L 1 P T R T A A A O A IF C 1 C H L IC S C C E A T S 2 S N existing long term tenants V P E N H R 3 S I O P IA N X IC - 1 I E T 1 2 M JEWELLERS E P 7 S O 9 2 G D 5 - R ROBINSONS THE A 1 C 2 9

1 0 S IR TA S T N A C A V S E R EPC V IC E K Y N 1 EPCs for the centre have been undertaken and can be provided A A 0 R T B 0 D D on request. E N A E L 1 R T 0 O E 4 T T C A & S G E 1 S W N E F O O TR 0 O C H N R P E R 6 E E K C H O 1 N P C C R R M 0 A O LA & E B C L S 8 O A L G I N T K A N O S C L LI N A O A S S C Y I T R U E A L M E A A B D S E D LY C

V A C A N T R H R E E T 4 G 7 O R R 6 1 L C T A I 1 C C S M A / D I H T D EN S T N T N A E E O S D E N N O H U L R O O F T 7 J R & R 3 LL P S A AR B 7 C S N 5 K E U E IO N H R T C N R I A U IS E `N S P D E E O F R H 8 A R S 7 C E C Y N IT A R C A 9 H 1 C

Y 9 THE HOSPICE SHOP C 3 H A F S M 1 H R R B A A N 9 H H O C P S 9 P M T O O N - E H E 2 C 1 O C P E 9 6 G S R 9 T A 0 C N T 1 - D A O 1 EL E 1 R N T V R E O T E S 1 A F 3 N M R T IC 1 E E T E F T W 0 S B F E 3 U O R O E G R M L G N U G 1 A C O IN Y I T IN 4 G 0 & S D N T H 5 A A T S E T D E P R P I I T M B O A R C L H O E I O C C C A T O S N STORES FOR GROUND5 FLOOR RETAIL UNITS A E F T / H R V N 1 C I E T S A O F A 0 N P I A E E QERO C E 9 R T W O A T R H T C FAST V N E S S S 1 E U S S W FOOD 8 S 1 G E R P A N 1 A R P IR 1 B P A N A F A B E X O 18 - T E L S S 1 /W N A E M 1 S 6 P O G O 3 / G V 1 C S & L C E N S F O P I EAT P BRIGHTHOUSE A E T S INO L 1 A G O V Y L S S G E D L E 1 E E 2 R 5 W R C I I E I O D S S S R N I 0 T C I A T T A H R D T T I S S 1 N N A 7 IR 1 E A R P L 9 C Y A 4 A IT E E T 15 1 R 1 V IL D S S OOF T B N T 8 2 A LA N L 1 P T R FT A A A O A I C C 1 C C H L A I S C E T S 2 S H N V P E N 3 S O R IA I P - 1 IN X IC M E T 1 2 E JEWELLERS P 7 S O 9 2 G D 5 - R ROBINSONS THE A 1 C 2 9 S IR 1 TA 0 S IR TA S T N A C A V S E R V IC E K Y N 1 A A 0 R T B 0 D D E N A E L 1 R T 0 O E 4 T T C A & S G E 1 S W N E F O O TR 0 O C H N R P E R 6 E E K C H O 1 N P C C R R M 0 A O LA & E B C L S 8 P O A L G I N T K A N O S C L LI N A O A S S C Y I T R U E A L M E A A B D S E D LY C

V A C A N T R Pricing

We are instructed to seek offers in excess of £6,425,000 (Six Million Four Hundred and Twenty Five Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Long Leasehold interest in the subject property. A purchase at this level would reflect a net initial yield of 10.00% after allowing for purchaser’s costs of 6.15% based on Scotland’s Land and Buildings Transaction Tax (LBTT).

For further information or to arrange a viewing please contact:

Sarah Stewart T: 0131 226 8736 E: [email protected]

Stephen Bibby T: 0131 226 8738 E: [email protected]

Andrew Marsden T: 028 9050 1514 E: [email protected]

MISREPRESENTATION ACT Cushman and Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer or 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) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents and is free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. July 2015.