88-104 HIGH STREET AYR

FOR SALE EXCELLENT RETAIL INVESTMENT OPPORTUNITY 66.75 YEARS TERM CERTAIN TO ESTABLISHED HIGH STREET RETAILER INVESTMENT SUMMARY

• An excellent opportunity to acquire an established retail investment within the retail, commercial and administrative centre for Ayrshire. • Category B listed building benefitting from 100% empty rates relief. • Let in its entirety to BHS Ltd at an annual rent of £530,000. • Long secure-income benefitting from an unexpired term of 66.75 years. • Part sub-lease to Poundland produces additional income of £160,000 per annum. • Total net income of £689,995 per annum. • Offers sought in excess of £6.00m reflecting an attractive NIY of 10.83% assuming standard purchaser’s costs and the deduction of LBTT. LOCATION SITUATION

The coastal town of Ayr is located on the west coast of Scotland, The subject property is located within the town’s prime retailing street, approximately 35 miles south west of Glasgow and 75 miles west of High Street. Occupiers within the vicinity include M&S, Superdrug, Boots, Tesco Edinburgh. Not only is Ayr the retail and commercial centre for the South and Wilko’s. Improving the strength of this location is Ayr’s prime retail centre, Ayrshire area, the town also has a strong history as a market and tourist Ayr Central, which is located a short distance to the south of the property destination with an estimated 1 million tourist visitors attracted to the and is anchored by Debenhams as well as being home to national retailers town each year. H&M and Primark. Ayr provides easy access to Glasgow by road via the A77/M77 and also benefits from a frequent rail service to Glasgow Central PERTHStation. Prestwick International Airport is also within close proximity being 5 miles north of the town centre. The nearby towns of Troon and Stranraer also offer regular S HARBOU R ST ferry services to Northern Ireland. ELBA STREET

HIGH STREET STRATHAYR PLACE

JOHN STREET A719 STIRLING

RIVER AYR

T NE E W E MA R RKET ST T REET

S

T

R

O EDINBURGH F

HIGH STREET

GLASGOW RAILWAY LINE

GAIETY THEATRE

MILL WYND

FORT STREET MILL STREET TROON BARNS STREET

PRESTWICK DALBLAIR ROAD

STATION RD KYLE STREET AYR CENTRAL SHOPPING CENTRE

AYR ALLOWAY PLACE ALLOWAY ALLOWAY STREET AYR RETAILING PROVISION

Ayr has a population of 47,000 and a primary catchment area of 168,000 people. Town centre retail floor space in Ayr is estimated to be 1.65 million sq ft with Ayr Central to the south comprising c.180,000 sq ft. The main shopping centre within the town prior to Ayr Central was the Kyle Centre, a covered mall fronting onto High Street which was bought out of receivership in 2014. Ambitious plans have since been unveiled for a substantial overhaul of the centre which will now feature a 7 screen multiplex cinema and multi-leisure provision. Planning permission has been granted for the £15m development which will radically transform the feel and footfall of the High Street. Ayr High Street also benefits from on-going regeneration projects which are managed and governed by Ayr

Renaissance. Ayr Renaissance is a limited liability Ayr Railway Station Ayr High Street partnership subsidiary of South Ayrshire Council created to deliver the regeneration strategy for Ayr. It will refurbish vacant retail premises to bring them back into use and improve the historic core of the town centre. It will also redevelop vacant retail premises in conjunction with the private sector to provide residential and commercial accommodation.

The proposed Kyle Centre Refurbishment Ayr Central Shopping Centre DESCRIPTION The property consists of two adjoining retail units each arranged over 4 stories within a Category B Listed building. BHS comprises a large department store-style unit with trading areas arranged over predominantly ground and first floors with the second and third floors providing ancillary accommodation. Escalator access is also available to the first floor substantially improving the trading potential. Unit 2 again utilises the ground and first floors for trading areas with the 2nd and 3rd providing ancillary storage accommodation. A covered storage yard is located to the east of the property. FLOOR PLAN HIGH STREET

Indicative ground floor plan of BHS SITUATION ACCOMMODATION We understand that the property provides the following Net Internal Area (NIA):

FLOOR SQ M SQ FT ITZA BHS Ground 2,378 25,595 First 2,460 26,475 Second 205 2,206 Third 207 2,224

Total 5,250 56,500 N/A POUNDLAND Ground 329 3,541 First 276 2,974 Second 107 1,147 Attic - -

Total 712 7,662 1,876 sq ft TENANCY COVENANT

The property is let in its entirety on a full repairing and insuring lease to BHS Ltd until 29 September 2082. The annual rent is £530,000 per annum and is reviewed on a 5 yearly basis to the open market. INFORMATION There is also an option to extend for either party. In addition to this, there are a number of sub-lettings within the property which allow the landlord to maximise the income within the property which have BHS LTD been outlined in the tenancy schedule below. BHS are a traditional high street fashion retailer, who TENANT DESCRIPTION FLOOR AREA LEASE START LEASE END CURRENT RENT COMMENTS in recent years have expanded into selling furniture, electronics, entertainment and convenience groceries. BHS Ltd Unit 1 56,500 21/11/1983 29/09/2082 £530,000 Either party has option to extend for BHS remains one of the most prominent brands on a further 26 years. the British high street with a network of 171 stores SUB-LETTING throughout the UK and 88 stores internationally, employing in the region of 12,000 people. The company AVP Co 25 Ltd Unit 2 7,622 21/11/1983 29/09/2082 -£5.00 Landlord has taken (Landlord) back part of the was bought by Retail Acquisitions in March 2015 and demise (unit 2) has benefitted from a cash injection of £65m which from BHS Ltd on will be used to modernise all of its stores over the a sub-lease at a nominal rent which next 3 years. This will include rebranding back to will be assigned the traditional British Home Stores, installing food to prospective purchaser upon sale. departments in most of its stores and refurbishing This has since been its cafés/restaurants, all highlighting the new owner’s sub-let to Poundland commitment to the brand. Ltd highlighted below. Poundland Ltd* Unit 2 7,622 10/04/2006 09/04/2021 £160,000 POUNDLAND LIMITED South Ayrshire First Floor - 21/11/1983 29/09/2082 £1.00 Either party has Council Toilets option to extend the Poundland is the largest single priced discount retailer lease by 26 years. in Europe with in excess of 450 stores. Founded South of Scotland Sub-station - 21/11/1983 29/09/2082 £0.05 in 1990, Poundland has grown in size and stature, Electricity Board particularly benefitting from the economic downturn and is now listed on the Stock Exchange and is a Total £689,996 constituent of the FTSE 250 index. TENURE

Heritable, Scottish equivalent of Freehold. EPC RATING

The property has an EPC rating of E+. VAT

The property has been elected for VAT, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC). CORPORATE ACQUISITION The asset is held in an Isle of Man Special Purpose Vehicle and the vendor is willing to sell the shares of this Company. Further information can be provided on request. PROPOSAL We are instructed to seek offers in excess of £6.00 million (Six Million Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 10.83% allowing for purchaser’s costs and the deduction of LBTT. FURTHER INFORMATION For further information or to arrange a viewing, please contact the vendor’s sole selling agent:

Patrick Ford Douglas Binnie [email protected] [email protected] 0141 566 0880 0141 566 0885

120 Bothwell Street Glasgow, G2 7JS

MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. 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 nor any joint agent 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). 2. 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. 3. 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 that all information is correct. 4. 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. January 2016.