Riverside Retail Park, Leven

Retail Park Investment Opportunity Riverside Retail Park, Leven

Investment Summary

Leven is an attractive coastal town located 14 miles from St Lying adjacent to the town centre, Riverside Retail Park is the Andrews and 37 miles from . only retail park serving the area and is opposite a Sainsbury’s store (circa 42,500 sq ft) and Home Bargains. The town forms the main retailing provision for the conurbation which has a population of over 38,000 people, with Opportunity to add value through adding a drive-thru, subject significant new housing planned. to planning.

Net income of £521,987 per annum with a WAULT of approximately Offers of £7,130,000 (Seven Million, One Hundred and Thirty 9.5 years to the break option. Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent The park has attracted a strong tenant line up of B&Q, Argos and of English Freehold) in the property. B&M Bargains. This represents an attractive net initial yield of 6.90%, after Rents on the park are affordable with B&Q having 5 yearly RPI allowing for purchaser’s costs of 6.16% based on ’s rent reviews. Land and Buildings Transaction Tax (LBTT). Location Demographics

Located in East , Leven is 14 miles from St Andrews The town of Leven has a population of 8,850 people, and 37 miles from Edinburgh. Leven is the dominant while the Levenmouth area has a total population of town providing the principal retail provision for the 38,173 people. Levenmouth has been categorised for Levenmouoth area, which encapsulates the towns of significant expansion, with 1,650 new homes allocated for Leven, Methil and Buckhaven. the area in the Strategic Development Plan for Edinburgh and South East Fife. A941

The Fife area is a popular location for commuters to A975 A865 A920 Edinburgh. From Leven the A915/A92A938 provides access to the national motorway network and the M90, which A939 A87 A97 A90 leadsA887 directly to Edinburgh. There are also proposals A944to A96 A97 A9 A851 reintroduce the Levenmouth rail link, whichA939 Fife Council A980 Aberdeen A888 areA82 supporting, and this would further enhance the A93 appeal of the area. At present the nearestA93 train station is A90 A9 A86 A957 in . A889

A830

The main employers within the conurbation are Diageo, A92

A861 who SCOTLANDhave recently investedA9 £86 millionA93 in expanding their A82

A937 bottling facility, and Energy ParkA924 Fife where over 900 A90 people are employed in the renewable energy sector. A934 A828 A884 A932 A848 A926 A82

A9 A928 A933 A94

A827 A90 A92 A923 A93 A94 A85 A822 A849 A85 A85 A85 Perth A82 A9 A92 St Andrews

A819 A91 A917 M90 A816 A915 A821 A9 A84 A823 A911 Leven A916 A873

A815 A91 A811 Stirling A83 A814 A81 A92 A886 M9 A907 Kirkcaldy A82 M80 A985 A809 A198

Falkirk A1 M9 A90 EDINBURGH A8 A886 A815 M80 Cumbernauld M8 A1 Clydebank Livingstone A1107 A720 Airdrie M8 A846 A78 Paisley Coatbridge A1 A737 Motherwell A71 A847 A725 Hamilton Wishaw Berwick-upon-Tweed East A70 A6112 A736 A702 Kilbride A72 A703 M77 A721 A701 A6105 A698 A7 A1 A721 A697 A71 A72 Kilmarnock A6089 Irvine A71 A78 A77

A83 M74 A699 A70 A68

A701 A841 Ayr A698 A70

A708 A719 M74 A68 A76 A702 A6088 A77

A2

A713 A697 A1068 A1 N56 A2 A7 Coleraine A701 A37 Ballymoney A702 Ashington A189 A2 Limavady N13 A44 A712 Blyth A2 A696 A77 A709 A68 A1 Londonderry A54 A43 A74(M) Cramlington A26 A714 A713 A762 Dumfries A19 A5 A29 Whitley Bay A75 N13 N14 A6 A712 Longbenton A75 A6071 A69 Wallsend Jarrow A69 M2 A718 A695 Newcastle Felling South Shields A75 A689 N15 A42 Ballymena upon Tyne A692 Gateshead A69 A694 A747 Sunderland A26 A36 A77 A710 Carlisle A686 A68 Washington A8 A2 Chester- Houghton le Spring

A716 A6 le-Street A31 A6 A711 A595 A691

A6 A746 A686 Durham M2 Carrickfergus M6 A181 A505 A596 A1(M) Peterlee NORTHERN Newtownabbey A689 A690 A19 A594 A52 A2 Bangor A179 Hartlepool A5 A167 BELFAST A66 A66 A35 A29 Newtownards A689 Workington A66 Newton Billingham Redcar A32 A501 Aycli e A5086 South IRELANDA26 Lisburn A592 Stockton- Bank A20 A4 A3 M1 A688 on-Tees A66 Middlesbrough Riverside Retail Park, Leven

Situation

The subject property is situated on Riverside Road (B933) between the junctions of Aitken Street and Hawkslaw Road, less than half a mile south west of Leven town centre. Sainsbury’s and Home Bargains are situated adjacent to the retail park.

A915 KIRKCALDY / BEDINBURGH

RIVERSIDE RETAIL PARK

Town Centre Occupiers SAINSBURYS PFS Description Tenancy

The park was developed in 2004 and comprises a terrace The property is multi-let with a current net income of £521,987 per annum. of 3 retail units extending to 50,539 sq ft (4,695.20 sq m). The park benefits from 201 car parking spaces to the front, with a secure service yard to the rear. Unit 1, Unit Tenant Lease Start Lease Expiry Rent Review Break Option Rent (PA) which is let to B&Q, has a garden centre to the north. 1 B & Q Plc 04/02/2005 04/02/2030 30/08/2020 * - £240,987 Within the car park there is a mobile food van 2 Argos Limited 04/02/2005 04/02/2020 04/02/2015 - £90,000 and a clothing recycling pod which provide the commercialisation income. 3/4 B & M Retail Limited 21/10/2011 20/10/2026 21/10/2016 21/10/2021 (T) £175,000

Commercialisation M & D Catering £6,000

Accomodation Commercialisation Terncove Limited £10,000

The ground floor of the subject property has been Total £521,987 measured on a gross internal area (GIA) basis in accordance with the RICS Code of Measuring Practice *The rent is reviewed 5 yearly, to RPI with a cap and collar of 3% and 0%, compounded annually. (6th Edition), and the approximate areas are as follows:

Tenant sq ft sq m

B&Q (Unit 1) 24,996 2,322.21

Argos (Unit 2)* 9,073 842.91

B&M (Unit 3/4) 16,470 1,530.08

Total 50,539 4,695.20

*There is a tenant’s mezzanine extending to 2,969 sq ft (275.82 sq m), which is not rentalised. Riverside Retail Park, Leven Covenant

B&Q Argos B&M Retail

B&Q PLC (Company Number: 00973387) has an ARGOS LIMITED (Company Number: 01081551) has an B&M RETAIL LIMITED (Company Number: 01357507) Experian score of 100 which provides a Very Low Risk. Experian score of 100 which provides a Very Low Risk. has an Experian score of 92 which provides a Very Low Risk. Part of the Kingfisher PLC group, B&Q are the UK’s Argos is a British catalogue retailer operating in the UK leading DIY and garden centre retailer with 360 stores and Ireland. With 737 stores and 340 million website B&M was formed in 1978 and is now one of the leading and over 20,000 employees. visits a year, it is one of the largest high street retailers in variety retailers in the , employing over the United Kingdom. 20,000 staff across 450 stores. They are also listed on the London Stock Exchange.

28th January 2nd February 1st February 3rd March 2nd March 1st March 31st Dec 2011 31st Dec 2012 31st March Year Ending Year Ending Year Ending 2012 (000s) 2013 (000s) 2014 (000s) 2012 (000s) 2013 (000s) 2014 (000s) (000s) (000s) 2014 (000s)

Turnover £3,710,400 £3,637,900 £3,589,500 Turnover £3,749,910 £3,752,634 £3,872,446 Turnover £712,572 £935,229 £1,509,132

Pre-Tax Profit £203,300 -£44,100 £138,600 Pre-Tax Profit £17,035 £84,662 £43,992 Pre-Tax Profit £51,702 £88,323 £123,398

Total Net Worth 4,368,500 £4,305,500 £4,385,900 Total Net Worth £1,170,118 £1,249,775 £1,172,054 Total Net Worth £105,539 £171,867 £281,228 Tenure Energy Performance Certificate Development Potential

Absolute Ownership (Scottish equivalent of English The energy perfromance rating for each unit is set There is potential to add value through developing a Freehold). out below: restaurant pod on the site, subject to planning. Indicative plans are available on request. Planning Unit EPC Rating CO2 Emissions VAT The property benefits from Open Class 1 (Non Food) 1 D 60

planning consent. Full planning permission was granted The property has been elected for VAT and therefore

0 in December 2003 for the erection of Non-Food retail 2 D 1 60 VAT will be payable on the purchase price. However it is units including a garden centre, mezzanine office, service anticipated that the sale will be treated as a Transfer of A T 3 / 4 e F 92 yard, car parking and associated landscaping. le Going Concern (TOGC).

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Gas Distribution Sta Filling Station 0m 25m 50m 75m Proposal

Offers of £7,130,000 (Seven Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English Freehold) in the property. This represents an attractive net initial yield of 6.90%, after allowing for purchaser’s costs of 6.16% based on Scotland’s Land and Buildings Transaction Tax (LBTT).

For further information please contact:

Sarah Stewart T: +44 (0)131 226 8736 E: [email protected]

Stephen Bibby T: +44 (0)131 226 8738 E: [email protected]

Natasha Ross T: +44 (0) 131 226 8735 E: [email protected]

Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG

MISREPRESENTATION ACT Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: 1/ The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2/ No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3/ The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4/ Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. 5/ Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. September 2015