FOR SALE

WITH RESIDENTIAL UPPER FLOORS

363-381 BYRES ROAD,

OFFERS OVER £11,150,000 (5% NET INITIAL YIELD & 5.63% REVERSIONARY YIELD) 363-381 BYRES ROAD, GLASGOW 2

INVESTMENT SUMMARY

100% Prime location in Glasgow’s affluent and vibrant West End

Let to Waitrose Limited

Ownership of 24 flats above the foodstore occupied on a long Ground Lease (75 years unexpired)

Flats will revert to Landlords in 75 years

Superb long term opportunity for private owner, family trust or charity

Dun & Bradstreet covenant of 5A1

Passing rent of £594,700 per annum (only £17.75 / sq ft)

Rental value of £670,000 (£20 / sq ft)

Lease expiry in September 2029 (over 10 years unexpired)

Our clients are seeking offers in excess of £11,150,000 (ELEVEN MILLION ONE HUNDRED AND FIFTY THOUSAND POUNDS STERLING) exclusive of VAT which reflects a net initial yield of 5%, reversionary yield of 5.63% and equivalent yield of 5.63% 363-381 BYRES ROAD, GLASGOW 3

The greater Glasgow conurbation according to the 2011 Census, totalled around 2.3 million, accounting for LOCATION more than 40% of Scotland’s entire population. Over 70% of the population is of working age demonstrating a relatively young demographic compared to the rest of the UK.

Glasgow is the powerhouse of the Glasgow is home to 5 Higher investment, including The SSE Hydro Scottish economy contributing Education institutions including the Arena, demonstrates the city’s approximately £19.62 billion, GVA , The University commitment to sustained regeneration. annually, more than a third of the of Strathclyde and Glasgow Caledonian Indeed, the Hydro Arena is now UK average. 19,000 companies make University as well as the world-renowned recognised as the second busiest live their home in Glasgow, generating an Glasgow School of Art and The Royal music venue in the world. annual turnover of £38 billion and it is Conservatoire of Scotland. The student currently within the top 20 of Europe’s population is the highest in Scotland The Glasgow city region also benefits best performing financial centres with more than 130,000 students from from the second largest City Deal in and is ranked 61st worldwide (Global 135 different countries across the the UK. Awarded in 2014, it promises Financial Services Index 2016). world. Over 3,000 retail businesses are over £1bn to fund major infrastructure present in Glasgow contributing 12.5% projects, improve public transport and Glasgow’s employment rate is at its to Scottish GVA. More than 90 million connectivity, drive business innovation highest ever rate, showing 67.3%. shoppers come to Glasgow per year. and growth and generate billions of The city is home to an impressive pounds of private sector investment. list of blue chip companies and Glasgow City has undertaken a number £115 million of this funding will be major global organisations including of development projects in its objective directed into the city centre and Barclays Wealth, Santander, HSBC, to provide a sustainable future for enhancing the overall retail and leisure Morgan Stanley, Direct Line, The both businesses and its residents. experience of both those residing and Student Loans Company, Ministry of The development which took place in visiting Glasgow. Defence, O2, Atos, Tesco Bank, Dell preparation for the 2014 Commonwealth and J.P Morgan. Games and the substantial infrastructure 363-381 BYRES ROAD, GLASGOW 4 COMMUNICATIONS

Glasgow is extremely well connected by a number of different transport modes including road, bus, rail, subway and air. In addition, Glasgow is continually investing in its transport infrastructure, with many projects ongoing which will improve and modernise various major transport systems.

Road Rail Subway Bus Air

Glasgow city centre is located at the heart of the Glasgow has the UK’s largest suburban rail network outside Glasgow’s underground rail system has There are a number of operators Glasgow is within an hour’s drive of three motorway network with the M8, Scotland’s main London, benefitting from two city centre train stations. an inner and outer circle serving key locations running over 170 daily services international airports, with Glasgow International motorway connecting Glasgow to Edinburgh. The M8 Glasgow Central, Glasgow’s biggest train station has across Glasgow through its 15 stations. Trains across over 100 routes in and out Airport just 15 minutes from the city centre. also provides direct access to the north, south, east connections to all major English cities and London can be run every 4 minutes at peak times and are able of Glasgow to various surrounding Glasgow Prestwick Airport and Edinburgh Airport and west of Scotland through its connections with the reached in around 4 hours. Glasgow Queen Street station to travel across the city centre in 10 minutes. locations. There are frequent bus are also easily accessible being around a 60 minute M74, M73, M77 and M80. Major improvement works connects Glasgow to the east and north of Scotland to The is currently undergoing services to and from Glasgow journey time. hosts approximately to upgrade the core of Scotland’s motorway network destinations including Edinburgh, Perth, Dundee, Aberdeen a full scale upgrade and modernisation Airport, taking only 15 minutes. 200 flights daily and is home to 30 airlines which fly have recently completed. Works include the completion and Inverness. including the introduction of new trains, to 120 destinations worldwide. There are 438 flights of the M8 between Baillieston and Newhouse, automated signalling and associated system to London per week with a circa 1 hour 20 minute improvements to the Raith Interchange on the M74 and In recent years there have been many rail line improvements improvements. The Subway Station flight time. The airport terminal has recently been upgrading of the existing M8, M73 and M74. and extensions and Queen Street Station has begun a major is located on Byres Road, 50 yards from the expanded and improved as part of a 10 year £200 multi million pound redevelopment and expansion. subject property. million investment programme. 363-381 BYRES ROAD, GLASGOW 5

BYRES ROAD IS THE JEWEL IN THE CROWN OF GLASGOW’S ECONOMIC AND SOCIAL LIFE, ATTRACTING VISITORS BYRES ROAD FROM GLASGOW AND BEYOND TO ITS & THE ATTRACTIONS BOTH DAY AND NIGHT. WEST END

The importance of Byres Road to The most exciting development for Byres Road, the West End and the entire city is Glasgow University’s campus expansion the city was recently demonstrated and redevelopment. We have illustrated on the aerial photograph when the City Council embarked upon on the following page, the scale of the University site which lies a £9 million public road improvement adjacent to Byres Road. scheme which includes the upgrading of pavements, street furniture, tree Founded in 1451, the University of Glasgow (UoG) is the fourth oldest university in the English-speaking world. Today the University planting, signage and cycle facilities. is ranked in the top 1% of the world’s universities and is the first and only UK University to be rated as 5 Stars Plus overall.

With more than 18,000 undergraduates and 7,000 postgraduates, the University of Glasgow welcomes students from over 140 countries worldwide each year.

With over 70 acres of prime city campus, the University is one of the largest employers in the west of Scotland with more than 6,000 staff, including 2,250 active researchers generating more than £200 million of research income per annum.

Following the acquisition of the adjoining 14 acre former Western Infirmary hospital site, the University will expand and transform its campus as part of a £1 billion development plan into a globally recognised iconic place of learning and research enhancing their position as a world leading institution.

Following receipt of planning permission and funding the University has appointed Multiplex as main contractor for this £1 billion development. This will include over 82,000 sq m (883,000 sq ft) of new academic space and 53,100 sq m (572,000 sq ft) of mixed residential, hotel and office space. 363-381 BYRES ROAD, GLASGOW 6

SITUATION

BOTANIC GARDENS

B

Y

R

E

S

R

O

A GREAT WESTERN ROAD

D

HILTON GLASGOW GROSVENOR

HILLHEAD SUBWAY

GREA WESER ROAD

ASHTON LANE BYRES ROAD

GLASGOW UNIVERSITY’S CAMPUS EXPANSION

KELVINGROVE ART GALLERY & MUSEUM

KELVIN HALL

DUMBA RTON ROAD 363-381 BYRES ROAD, GLASGOW 7

SITUATION RIVER KELVIN

The population is made up The subject property is situated GREAT WESTERN ROAD of 320% of the British Average on the west side of Byres Road near the junction of Great of Income Quintile 1, according Western Road and Observatory to Oxford Retail Consultants, Road in the 100% prime retail with the dominant lifestyle location in this busy thoroughfare category being young couples in Glasgow’s West End. and couples with no children. The demographics of this area are quite extraordinary with HILTON GLASGOW almost 110,000 people within GROSVENOR a 10 minute drive time. Further BO'VINE MEATS assessment commissioned by & WINES our clients shows almost 60% BEGIN of the local catchment to be ÒRAN MÓR GREAT WESTERN ROAD either A or B Social Economic NIC’S NYC DELI CAIL BRUICH Classification. This report also MATILDA’S highlights that the majority of this WATERSTONES THE PARLOUR store’s trade is drawn from the VINICOMBE ST BREAD 74,000 people in the direct affluent RBS MEATS HILLHEAD BREAD West End suburbs. BOOKCLUB SANTANDER HILLHEAD LIBRARY

MARIO'S PLAICE ATRIUM COFFEE BOOTS

CAFE ANDALUZ TACO MAZAMA TESCO BYRESMETRO ROAD ZIZZI GREGGS CAFE GO-GO THE BOTHY CECIL STREET

THE HANOI S’MUG GREAT GEORGE STREET BIKE SHOP S COFFEE HILLHEAD DOWANSIDE RD SUBWAY STATION HILLHEAD STREET PIZZA EXPRESS UBIQUITOUS JINTY MGUINTY’S CHIP IRISH BAR LITTLE ITALY PIZZERIA THE THE WEE CURRY SHOP LA VITA SPUNTINI GARDENER VODKA WODKA THE BASEMENT GROSVENOR CINEMA TENNENT’S BAR BREL

ASHTON LANE QUEEN HIGHBURGH RD INNES & GUNN MARGARET TAPROOM UNION 363-381 BYRES ROAD, GLASGOW 8

DESCRIPTION

The subject property comprises a The ground floor is predominantly retail Grosvenor Court foodstore formed over ground and sales with the area to the rear at ground Residential flats basement floors which have been fitted floor providing good service to the ground floor loading area. The basement provides There are 24 residential flats above the out in the corporate style of Waitrose. staff and storage facilities access via internal foodstore, with each tenant holding a long stairs, with a goods lift providing access from leasehold title under the Ground Lease ground to basement level. There is a car park which has an expiry date of 24 June located at roof level from Grosvenor Street 2095. The block is known as Grosvenor via a ramp to the second floor level. There are Court. There are ten four apartment flats, approximately 49 spaces at first floor level (2 ten of three apartments and four of two of which are disabled and 2 parent and child) apartments. Grosvenor Court is accessed via with 26 spaces at second floor with 24 spaces a passageway leading off Byres Road and a reserved for the flat owners. private stairway and lift leading to the flats. 363-381 BYRES ROAD, GLASGOW 9

ACCOMMODATION RENTAL ANALYSIS EPC

We have measured the subject premises in accordance with the RICS The passing rent was set at Third Party in 2014. The Expert’s analysis This will be provided to genuinely interested parties. Code of Measuring Practice 2007 and would estimate that the subjects was calculated as follows: extend to the following areas Gross Internal Areas: GIA: 32,687 sq ft Rate / sq ft: £17.75 Basement floor 11,170 sq ft £580,194 Ground floor 21,517 sq ft Add: 2% for fit out: £14,505 PROPOSAL £594,699 Total GIA 32,687 sq ft Say: £594,700 per annum We are instructed to seek offers in excess of £11,150,000 (ELEVEN MILLION ONE HUNDRED AND FIFTY Note: These floors areas were agreed with the tenants for the Third Party review in August 2014. THOUSAND POUNDS STERLING) exclusive of VAT for our client’s heritable interest subject to and with the benefit of the existing lease. A purchase at this CURRENT RENTAL VALUE level would show an attractive Net Initial Yield of 5%, reversionary yield of 5.63% and equivalent yield of 5.63% The premises will be subject to review with effect from 28 August after allowing for purchaser’s costs at 6.71%. TENANCY 2019 and our clients have decided to allow a new owner to take this matter forward. We believe that the appropriate rental rate for such a The basement, ground, first and part second floors are let to Waitrose prominent location and affluent catchment should be at the upper level Limited on a FRI Lease from 27 September 2009 expiring 26 September of Waitrose comparables and have utilised £20 / sq ft. Comparable 2029 subject to upwards only rent reviews on 26 August 2019 and rental evidence will be provided to genuinely interested parties. 2024, at a current passing rent of £594,700 per annum. GIA: 32,687 sq ft VAT The upper floor residential accommodation and 24 car spaces are let to Rate / sq ft: £20.00 Our clients have elected to waive exemption for VAT and individual occupiers on ground leases at a peppercorn rent. £653,740 accordingly VAT will be payable on the purchase price, Add: 2% for fit out: £16,343 although we anticipate the sale will be dealt with by way £670,083 of a Transfer of Going Concern (TOGC). Say: £670,000 per annum

TENURE COVENANT LEGAL The entire property including the upper floor residential property is Waitrose Limited has a Dun & Bradstreet credit rating of 5A1. Each party will be responsible for their own legal costs held on a heritable title (Scottish equivalent of English freehold). For the year ended 26 January 2019, the company reported sales incurred in connection with the transaction. turnover in excess of £6.2 billion, gross profit in excess of £1.2 billion and a tangible net worth of over £763 million. 363-381 BYRES ROAD, GLASGOW

Stewart Sheridan Noel Tiffney Viewing [email protected] [email protected] & Further 07740 940 898 07870 999 799 Information Cathal Keane [email protected] Please contact the 07808 627 224 sole selling agents: Graeme Millar [email protected] 07523 512 804

Sheridan Property Consultants Sheridan Property Consultants 37 One 10 Fitzroy Square 37 George Street London Edinburgh W1T 5HP EH2 2HN

Tel: 0131 300 0296 Tel : 020 7112 8046

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 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 person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate; January 2020.