FOR SALE OFFERS IN EXCESS OF 100% PRIME OLD TOWN EDINBURGH INVESTMENT £1,370,000 (5.50% NIY) 170 HIGH STREET, ROYAL MILE, EDINBURGH, EH1 1QS EXECUTIVE SUMMARY Exceptionally rare long income investment opportunity in the heart of Edinburgh’s Historic Royal Mile; Located on the 100% prime, high street tourist pitch in Edinburgh’s City Centre; Let to B&GS Landa trading as Taste of Scotland (D&B credit rating of 2A2) until 30 October 2039; 1 Unbroken term remaining in excess of 19 years; Passing rent of £80,000 per annum (£137/sqft Zone A); Fantastic investment opportunity for a private investor or family office; We are instructed to seek offers in excess of £1,370,000 (ONE MILLION, THREE HUNDRED AND SEVENTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial yield of 5.50%, after allowing for purchasers’ costs of 5.96% including LBTT (Land Building and Transactions Tax).
100% PRIME OLD TOWN EDINBURGH INVESTMENT INVERLEITH ROW
AD RO N ROYAL BOTANIC TO IS R R GARDENS A PILRIG STREET Edinburgh is recognised as the second most tech-savvy city W Edinburgh is recognised as a globally in the UK with Edinburgh’s rapidly expanding and innovative important business centre and is the UK’s technology sector being home to international success MCDONALD ROAD stories, such as Rockstar North, FanDuel, Cirrus Logic and second largest and Europe’s fourth largest Water of Leith BROUGHTON ROAD Skyscanner. Edinburgh was the fastest growing tech hub in
BRANDON ST RODNEY STREET financial centre, by equity assets under 2017/18 and is home to over 100 technology companies. LEITH WALK
management. GLENOGLE ROAD EYRE PLACE There are eight universities and further education colleges GRANGE EAST CLAREMONT STREET in Edinburgh, with almost 80,000 students in the city. The CRICKET The capital city of Scotland is located approximately 400 CLUB HENDERSON ROW COME LOCATION miles north of London and 45 miles east of Glasgow. It University of Edinburgh was ranked 20th in the World LY BAN K COMELY BANK AVE R EAST LONDON STREET AEBU University Rankings by The QS in 2019/20. In the past five LEARMONTH GROVE FETTES ROW is one of the six cities categorised by PMA as a major city RN ELM ROW P U LA NION STREET LEARMONTH AVE C BROUGHTON ST and, consequently, benefits from a significant catchment years, more than 80 spin-out companies have come from E Edinburgh is Scotland’s The University of Edinburgh, 95% of which are still active. LANE CUMBERLAND STREET population. US ST VINCENT ST HOWE ST C IR DUNDAS STREET CRAIGLEITH PARK ST STEPHENC ST Capital City and its LONDON ROAD ORCHARD BRAE The city has a population of 518,000 people and a regional GREAT KING ST principal, financial and EASTER ROAD population of over 1.6 million within the Fife and Scottish LEARMONTH GDNS GLOUCESTER LANE Borders catchment area. It is the most prosperous regional S LEARMONTH GDNS NORTHUMBERLAND STREET
administrative centre, Q YORK PLACE city in the UK and its workforce is one of the most highly UE DEAN PARK CRESCENT EN SF ST JAMES E Y PL A C educated. It was visited by over 3.8million people in 2018 RR A E housing both the Scottish Y R CENTRE ROA O according to Visit Scotland with tourism accounting for D QUEENSFERRY ROAD M HERIOT ROW EW Bus Parliament and the THISTLE ST ST ANDR Station 35,000 jobs and £1.5billion to the Scottish Economy in QUEEN STREET HANOVER ST 2018. THISTLE ST GEORGE ST Scottish Government. ALBYN PLACE HILL ST SQUARE C GEORGE ST REGENT ROAD Edinburgh is consistently ranked as one of the UK’s most AS ROSE ST HOLYROOD NORTH BRIDGE T GEORGE ST PALACE 2 E L 3 T E competitive large cities, based on factors such as skills, RAVELSTON TERRACE LOT ROSE ST CALTON RD CHAR S PRINCES STREET T QUEENSFERRY ST T OSE ST H productivity and qualifications. It also has the second highest R P E SC AR THE MOUND L O E Waverley IAME gross value added per resident of any of the 133 regions AR T SQU T Station TE ISH NT of the UK, with GVA per resident of £39,300 compared CANONGA PRINCES STREET to a UK averaged of £26,300 with 75.6% of working ET E AD TR O Spending by tourists S MELVILLE ST age population in employment. These factors have led to R OD R TE O ES YR H LOTHIAN ROAD in Scotland generates Edinburgh being voted the UK’s best city by The Telegraph C HIGH STREET HOL G E in 2018. O SHANDWICK PLACE R around £12 billion Edinburgh Castle G C E A I S V T L B E R
of economic activity T I D E R AR P R SSM KET G L A E R E G A
TORPHICAN ST CHAMBERS STREET S for the wider Scottish A
MAITLAND ST N NICOLSON STREET C
E L RT supply chain and AD EST PO RO W MORRISON ST Y W SEB EST COATES HAYMARKET TERRACE LA URN W TERRACE ST LEONARDS BREAD ST SO N contributes around £6 SEMPLE ST Haymarket ST Station billion to Scottish GDP, O N P L A C E R I ST GROVE ST U representing about 5% of L A total Scottish GDP LRY ROAD A WEST APPROACH ROAD D MEADOWS
FOUNTAINBRIDGE WEST APPROACH ROAD BRUNTSFIELD MELVILLE DRIVE LINKS 100% PRIME OLD TOWN EDINBURGH INVESTMENT DUNDEE STREET
E C A L P D EL ANGLE PARK TERRACE FI TS N U BR RAIL TRAM
The city centre is served by Edinburgh Waverley and The city’s new tram system began operating in May Haymarket rail stations. Edinburgh Waverley, the city’s 2014 connecting Edinburgh Airport with Edinburgh principal rail station lies adjacent to the High Street. Park. Haymarket Station and Princes Street, with services Edinburgh Waverley is Scotland’s second busiest rail terminating at York Place. The Princes Street tram halt is station with in excess of 23 million entries/exits in the year located at the bottom of the mound, approximately 200m CONNECTIVITY to December 2019 (ORR). from the Lawnmarket/Royal Mile.
Both Edinburgh Waverley and Haymarket rail stations In its second full year of operation 7.5 million passenger Edinburgh is the most have benefitted from recently multi-million pound journeys were recorded on Edinburgh trams, representing refurbishments and upgrading programmes to keep pace an increase of over 22% since 2017. The proposed tram visited tourist and with increased passenger demand. Edinburgh Waverley route extension has been given the go ahead to extend commercial destination in provides direct train services to and from London via the to the Leith/Shore are to the north east of the city, further East Coast main line and also provides easy access to enhancing Edinburgh’s City Centre connectivity. the UK after London, with and from other key English towns and cities, as well as an exceptional transport providing services to all major Scottish cities. and communications ROAD network connecting it Edinburgh benefits from access to the national motorway network. 4 The city is served by the M8 and M9 from the West (Glasgow and 5 both internationally Livingston), the M90/A9 from the North (Aberdeen and Inverness) and with other cities and the A1/A7 from the South/South East (East Lothian, the Borders and Newcastle). throughout the UK.
AIR Edinburgh Airport is located only 8 miles from the city centre and is Scotland’s busiest airport and the UK’s sixth largest. Passenger numbers in 2018 increased by 6.5% to 14.3 million representing an 15.5 million visitors were average of 39,178 passengers per day. attracted to Scotland in 2018, with three and half million people coming from overseas Total spending by tourists reached nearly £5 billion in 2018, and the value of the sector to wider economy is estimated to be £10.5 billion
100% PRIME OLD TOWN EDINBURGH INVESTMENT SITUATION
The property is located on the pedestrianised section of the High Street which forms part of Edinburgh’s renowned Royal Mile which is 6 an extremely popular 7 tourist destination.
During the annual Edinburgh Festival, the High Street becomes crowded with tourists, entertainers and buskers. Parliament Square is at the heart of Scotland’s legal system, being the home of both the High Court and the Court of Session.
The area benefits from local retailers including Royal Mile Factory Outlet, Subway, House of Cashmere, Caffe Nero, Albanach Public House, Edinburgh Fringe Shop and a wide variety of tourist and Scottish retailers.
100% PRIME OLD TOWN EDINBURGH INVESTMENT TENANCY INFORMATION The subjects are let to B & G S Landa Limited trading as Taste of Scotland on a 25- year FRI lease from 31 October 2014 expiring 30 October 2039 at a passing rent of £80,000 per annum (£137/sqft Zone A), paid quarterly in advance.
There is a provision within the lease for a rent review on every fifth anniversary from the date of entry, with the next review due in 2024. The rent is to be reviewed to the greater of the rent payable immediately prior to the review date and the market rent at the DESCRIPTION review date.
The subject property comprises a ground and basement, mid-terraced retail COVENANT INFORMATION B&GS Landa Limited t/a Argyll Cashmere. B&GS Landa Limited are luxury Scottish unit forming part of a four goods retailer and operate a number of retail outlets on the Edinburgh Royal Mile and storey and attic, traditional throughout the city. tenement building held under a B&GS Landa have a Dun & Bradstreet rating of 2A2. For the year ending 31 January 2019 the company reported a sale turnover of £13.13 million, pre-tax profits of £7.4 pitched and slated roof. million and a Tangible Net Worth of £3.578 million. 8 9
ACCOMMODATION We have measured the subject premises in accordance with the RICS Code of Measuring TENURE LEGAL COSTS Practice (Sixth Edition) and would estimate the The subject property is held on a Each party will be responsible for their following approximate net internal areas: heritable title (Scottish equivalent of own legal costs incurred in connection English Freehold). with the transaction. PROPOSAL FLOOR SIZE (SQ M) SIZE (SQ FT) We are instructed to seek offers in excess of £1,370,000 (ONE Ground 55.28 595 MILLION, THREE HUNDRED AND SEVENTY THOUSAND Basement 35.30 380 POUNDS STERLING) exclusive of VAT. TOTAL 90.58 975 VAT EPC A purchase at this level would show an attractive net initial yield Our clients have elected to waive of 5.50%, after allowing for purchasers’ costs of 5.96% including ITZA 54.25 584 EPC Available on request. exemption for VAT and accordingly VAT LBTT (Land Building and Transactions Tax). will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of Going 100% PRIME OLD TOWN EDINBURGH INVESTMENT Concern (TOGC). VIEWING & FURTHER INFORMATION Please contact the sole selling agent: Sheridan Property Consultants
37 ONE, 37 George Street Edinburgh EH2 2HN
Tel. 0131 300 0296
Stewart: 07740 940898 email: [email protected]
Cathal: 07808 627224 email: [email protected]
Graeme: 07523 512804 email: [email protected]
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 have 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. Date of Publication: September 2020