INVESTMENT FOR SALE
BROICH ROAD, CRIEFF, PH7 3SB
INVESTMENT SUMMARY
• Opportunity to acquire a 22,000 sq ft retail warehouse unit with accompanying 7,500 sq ft garden centre, which is currently under construction, in the affluent Perthshire town of Crieff
• PC – July 2021
• Letting documented with B&M Retail Limited for 15 years. B&M Retail Limited have a D&B rating of 5A1
• Adjacent to the site is a 20,000 sq ft Aldi supermarket, which opened in 2019
• There is unimplemented planning permission for a further 8,500 sq ft retail unit next to the Aldi
• New residential development (subject to planning) immediately to the north of the site
• Contracted rent of £308,000 pa which equates to a rate of £14 per sq ft
• The rent will be reviewed every 5 years on an upwards only basis, to open market rental value, capped at 12%
• B&M operated as an essential retailer during the recent Government lockdowns
Offers in excess of £4,283,000 (Four Million Two Hundred and Eighty Three Thousand Pounds) exclusive of VAT, reflecting a Net Initial Yield of 6.75%, assuming standard purchaser’s costs and LBTT. LOCATION
• Crieff is a popular market town located in Perthshire. The town is located approximately 17 miles to the west of Perth and 22 miles north of Stirling. It is the second largest town in Perth & Kinross.
• The A85 provides links to the A9 / M90 motorway networks, offering key transport links to Edinburgh and Glasgow to the south and Inverness and Aberdeen to the north.
• The site fronts onto both Duchlage Road and Broich Road, in close proximity to the new Crieff High School campus.
• The town has a resident population in excess of 7,300 people and is a popular tourist destination. The transient population is far greater with over 2.3m tourists visiting the Perthshire area each year.
DESCRIPTION
• New development of a stand alone retail warehouse totalling 22,000 sq ft with an additional 7,500 sq ft garden centre.
• The building will be of steel frame construction with a traditional block cavity walling and insulated cladding panels.
• The development is set on 1.91 acres (0.77 ha) and will provide a minimum of 75 car parking spaces.
• The northern part of the site (which is not included in the sale) is subject to a planning application for approximately 35 new homes.
PLANNING
• The unit and garden centre have planning consent for Class 1 retail within the Schedule of the Town and Country Planning (Use Classes) (Scotland) Order 1997
TENANCY & COVENANT
Tenancy
A new 15 year FRI lease with no breaks to B&M Retail Limited. The initial passing rent is £308,000 per annum (£14.00 per sq ft) which will be reviewed every 5 years on an upwards only basis to the greater of OMV or the rent payable immediately before the review, subject to a cap of 12%. The tenant will benefit from 6 months rent free upon taking occupation.
B&M Retail Limited
B & M Retail Limited is one of the UK’s largest and most successful retailers. Formed in 1978, they have expanded rapidly in recent years and now have over 600 stores across the UK, employing over 28,000 people.
Profit (pre Net Tangible B&M Retail Limited Turnover (000) taxation) Assets (000) (000)
2020 £3,148,497 £262,360 £1,782,874
2019 £2,801,499 £273,406 £839,035
2018 £2,629,145 £236,006 £680,479 VAT
The property has been elected for VAT and therefore VAT will be applicable on the purchase price. However, it is anticipated that the sale will be treated by way of a Transfer of Going Concern (TOGC).
PROPOSAL We are seeking offers in excess of £4,283,000 (Four Million Two Hundred and Eighty Three Thousand Pounds) exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 6.75% assuming actual purchaser’s costs.
CONTACT For further information please contact the below:
Dominic Walton Alasdair M Steele Stewart Sheridan Graeme Millar M - 07818 041 670 M – 07808 479 333 M – 07740 940 898 M – 07523 512 804 [email protected] [email protected] [email protected] [email protected]
Important notice. 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 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). 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. 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 all that information is correct. 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. March 2021.