FOR SALE 100% PRIME RETAIL BUCHANAN INVESTMENT STREET. OFFERS OVER £9,250,000 G1 2JW (4.25% Net Initial Yield & 4.83% Reversionary Yield) 122 128 PAGE 2 PAGE INVESTMENT 122 SUMMARY

• Glasgow is ’s largest city with the population totalling 2.3 million people

• Corner block on the east side of Buchanan Street, in the 128 100% prime pitch • Let to Swatch Group UK Limited and Scribbler Holdings Limited

• Dun & Bradstreet covenants of 4A1 and 2A1

• Passing rent of £417,500 per annum and an ERV of £476,000 per annum (w.e.f. September 2021)

• 122-124 (Scribbler) lease expiry in July 2027 (over 9 years unexpired)

• 126-128 (Swatch) lease expiry in September 2026 (over 8 years unexpired)

• Our clients are seeking offers in excess of £9,250,000 (NINE MILLION TWO HUNDRED AND FIFTY THOUSAND POUNDS STERLING) exclusive of VAT which reflects an attractive net initial yield of 4.25%, reversionary yield of 4.83% and equivalent yield of 4.74% assuming purchasers’ costs of 6.3% PAGE 3 PAGE

Glasgow’s employment rate has improved Glasgow City has undertaken a number significantly, reaching its highest ever rate of development projects in its objective GLASGOW in 2016 of 67.3%. The city is home to an to provide a sustainable future for both impressive list of blue chip companies businesses and its residents. The LOCATION and major global organisations including development which took place in Barclays Wealth, Santander, HSBC, preparation for the 2014 Commonwealth Morgan Stanley, Direct Line, The Student Games and the substantial infrastructure Loans Company, Ministry of Defence, O2, investment, including The SSE Atos, Tesco Bank, Dell and J.P Morgan. Hydro Arena, demonstrates the city’s commitment to sustained regeneration. Glasgow is home to 5 Higher Education Indeed, the Hydro Arena is now The greater Glasgow conurbation institutions including the University of recognised as the second busiest live according to the 2011 Census, totalled Glasgow, The University of Strathclyde music venue in the world. and Glasgow Caledonian University as around 2.3 million, accounting for more well as the world-renowned Glasgow The Glasgow city region also benefits than 40% of Scotland’s entire population. School of Art and The Royal Conservatoire from the second largest City Deal in the Over 70% of the population is of working of Scotland. The student population is UK. Awarded in 2014, it promises over age demonstrating a relatively young the highest in Scotland with more than £1bn to fund major infrastructure projects, 130,000 students from 135 different improve public transport and connectivity, demographic compared to the rest of countries across the world. Over 3,000 drive business innovation and growth and the UK. retail businesses are present in Glasgow generate billions of pounds of private contributing 12.5% to Scottish GVA. sector investment. £115 million of this It is the powerhouse of the Scottish More than 90 million shoppers come to funding will be directed into the city economy contributing approximately Glasgow per year and Buchanan Street is centre and enhancing the overall retail the busiest prime high street in the UK, and leisure experience of both those £19.62 billion, GVA annually, more after Oxford Street in London, with 6,600 residing and visiting Glasgow. than a third of the UK average. 19,000 people passing through every hour. companies make their home in Glasgow, generating an annual turnover of £38 billion and it is currently within the top 20 of Europe’s best performing financial centres and is ranked 61st worldwide 122 (Global Financial Services Index 2016). 128 PAGE 4 PAGE ROAD CONNECTIVITY is located at the heart of the motorway network with the M8, Scotland’s main motorway connecting Glasgow to Glasgow is extremely well connected by a number Edinburgh. The M8 also provides direct access to the north, south, east and west of Scotland through its connections with the M74, of different transport modes including road, M73, M77 and M80. Major improvement works to upgrade the core bus, rail, subway and air. In addition, Glasgow is of Scotland’s motorway network have recently completed. Works 122 continually investing in its transport infrastructure, include the completion of the M8 between Baillieston and Newhouse, improvements to the Raith Interchange on the M74 and upgrading of with many projects ongoing which will improve the existing M8, M73 and M74. and modernise various major transport systems. 128 BUS There are a number of operators running over 170 daily services across over 100 routes in and out of Glasgow to various surrounding locations. There are frequent bus services to and from , taking only 15 minutes.

RAIL Glasgow has the UK’s largest suburban rail network outside London, benefitting from two city centre train stations. Glasgow Central, Glasgow’s biggest train station has connections to all major English cities and London can be reached in around 4 hours. Glasgow Queen Street station connects Glasgow to the east and north of Scotland to destinations including Edinburgh, Perth, Dundee, Aberdeen and Inverness.

In recent years there have been many rail line improvements and extensions and Queen Street Station has begun a major multi million pound redevelopment and expansion.

SUBWAY Glasgow’s underground rail system has an inner and outer circle serving key locations across Glasgow through its 15 stations. Trains run every 4 minutes at peak times and are able to travel across the city centre in 10 minutes. The is currently undergoing a full scale upgrade and modernisation including the introduction of new trains, automated signalling and associated system improvements.

AIR Glasgow is within an hour’s drive of three international airports, with Glasgow International Airport just 15 minutes from the city centre. Glasgow Prestwick Airport and Edinburgh Airport are also easily accessible being around a 60 minute journey time. Glasgow Airport hosts approximately 200 flights daily and is home to 30 airlines which fly to 120 destinations worldwide. There are 438 flights to London per week with a circa 1 hour 20 minute flight time. The airport terminal has recently been expanded and improved as part of a 10 year £200 million investment programme. PAGE 5 PAGE

CÔTE

RETAIL IN GLASGOW

Glasgow city centre has an established reputation as a leading fashion centre with a broad range of fashion multiples from mass market to upmarket, specialist retailers. The city centre has 2.9 million sqft of retail floor space with the prime retailing locations being Buchanan Street, Argyle Street and forming the retailing ‘Golden Z’. The offer on these thoroughfares is supplemented by the 660,000 sq ft Buchanan Galleries, the 540,000 sq ft St Enoch Centre and speciality shopping centre, Princes Square.

Buchanan Street which is firmly established as the 100% prime location for high end fashion retailer, has seen a sustained ALL SAINTS period of significant rental growth with prime rents now in the 122 order of £330/sq ft ITZA. Demand for the prime retail pitch continues to grow and

MOUNTAIN WAREHOUSE Glasgow recently welcomed global brands Massimo Dutti, 128 (their first store outside London), Michael Kors and Kiko. PAGE 6 PAGE DESCRIPTION 122 The subject property comprise two adjacent prime retail units arranged over ground and basement floors, part of a larger building with the upper floor offices under separate ownership. 128 ACCOMMODATION

We have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition) and would estimate that the subjects extend to the following areas Net Internal Areas:

122 - 124 Buchanan Street, Glasgow

DESCRIPTION NIA REDUCTION FACTOR ITZA

Zone A 509 1 509

126 - 128 Buchanan Street, Glasgow Zone A1 21.5 1-10% 20

Zone B 25 ½ 13 DESCRIPTION NIA REDUCTION FACTOR ITZA

Zone B1 9 ½ - 10% 4 Zone A 750 1 750

Return frontage GF NIA 565 sq ft 75 allowance

Basement 234 1/10 24 Basement 779 1/10 78

TOTAL NIA 799 sq ft TOTAL NIA 1529 sq ft

Total Reduced Area 570 sqft Total Reduced Area 903 sq ft w

PAGE 7 PAGE INVESTMENT EVIDENCE 122 The most comparable evidence is attached below. 128 ADDRESS PURCHASER TENANT PRICE DATE NIY 20-26 Buchanan St Redevco Nike £29.3 million Mar 2017 4.29%

Russell & Bromley / 55-59 Buchanan St Private investor £22.15 million Feb 2017 4% TENANCY Molton Brown / Kiko

122-124 Buchanan Street, Glasgow is let to Scribbler Holdings Limited 235-249 Buchanan St Hines - £38 million Q3 2017 3.24% on a 10 year FRI Lease from 10 July 2017 to 9 July 2027 at a current passing rent of £187,500 per annum (£329/sqft Zone A). The property is subject to a rent review on 10 July 2022. 16a Buchanan Street Private investor Clarks £4 million Mar 2017 4.48%

126-128 Buchanan Street, Glasgow is let to Swatch Group (UK) Limited Apple 4% on a 10 year FRI Lease from 13 September 2016 expiring 12 September Apple / All Bar One 147 Buchanan St / All Bar One 5% 2026 at a current passing rent of £230,000 per annum (£255/sqft Zone A). Pontegadea / Skipton / Lloyds / £47.8 million Sep 2017 47-72 St Vincent St Bank inc 5.5% The property is subject to a rent review on 13 September 2021. There is offices Offices 6.5% a Schedule of Condition attached to the Swatch lease.

As you can see, the tone for the street is established at a minimum of £320 / sq ft, with letting to Scribbler (£329 / sq ft Zone A) TENURE and Levi (£321.60 / sq ft Zone A) in excess of this figure. Applying £320 / sq ft to the Swatch area produces an ERV of £289,000 per annum. The property is held on a heritable title (Scottish equivalent of English freehold). COVENANT RENTAL EVIDENCE Scribbler Holdings Limited has a Dun & Bradstreet rating of 2A1. For the NET year ending 31 August 2016 the company reported a Sales Turnover in ADDRESS TENANT LEASE DATE RENT PA COMMENT excess of £13.45 million, Profit in excess of £663,000 and a Tangible Net EFFECTIVE ZA Worth in excess of £2.2 million. 38 Buchanan St Levi OML 2018 £420,000 £321.60 10/5 FRI (no breaks). Swatch Group UK Limited has a Dun & Bradstreet rating of 4A1. For the year ending 31 December 2016, the company reported Sales Turnover 10/5 FRI Lease. 3 months rent in excess of £81 million, Profit in excess of £5 million and Tangible Net free. Deal took a long time to Worth in excess of £34.9 million. 60-62 Buchanan St Nespresso OML 2017 £385,000 £285.00 agree so by the time it was agreed the tone pushed passed the agreed rent. EPC 87/89 Buchanan St O2 2017 Ongoing £427,500 £305.00 10 year lease, 3 months rent free. We are advised that the Energy Performance Rating of the properties are Previous tenant Hawes & Curtis as follows: 131 Buchanan St T2 OML 2017 £230,000 £317.00 paid £260 sq ft on an OML in March 2015. Scribbler, 122 - 124 Buchanan Street, Glasgow Rating G 42 Buchanan St Hotel Chocolat OML 01/04/17 £320,000 £306.00 10/5 FRI Lease. Swatch, 126 - 128 Buchanan Street, Glasgow Rating F BUCHANAN VIEWING 122 STREET. & FURTHER 128 GLASGOW G1 2JW INFORMATION Please contact the sole selling agents:

Sheridan Property Consultants 37 One PROPOSAL 37 George Street We are instructed to seek offers in excess of Edinburgh EH2 2HN £9,250,000 (NINE MILLION TWO HUNDRED AND Tel 0131 300 0296 FIFTY THOUSAND POUNDS STERLING) exclusive of VAT for our client's heritable interest subject to and with the benefit of the existing leases. Stewart Sheridan Cathal Keane 07740 940898 07808 627224 A purchase at this level would show an attractive Net [email protected] [email protected] Initial Yield of 4.25%, reversionary yield of 4.83% and Graeme Millar equivalent yield of 4.74% assuming purchasers’ costs 07523 512804 of 6.3%. [email protected]

VAT APRIL 2018 Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of Going Concern (TOGC).

Sheridan Property Consultants for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to LEGAL condition and necessary permission for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them and are advised to do so; (iii) no Each party will be responsible for their own legal costs incurred in person in the employment of Sheridan Property Consultants has any authority to give representation or warranty connection with the transaction. whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate.