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Home , Areas of Aberdeen, Craigiebuckler, Footdee, Foresterhill, Kaimhill, Kittybrewster

FOR SALE 3-5 ST NICHOLAS STREET , AB10 1HE

PRIME RETAIL INVESTMENT OFFERS OVER £1,250,000 (9.82% NET INITIAL YIELD) AB10 1HE EXECUTIVE SUMMARY

• Unique opportunity to acquire a prime, retail investment in the heart of Aberdeen’s City Centre; • Prominently located the property Aberdeen Street, 3-5 Nicholas comprises a five storey corner building extending to 345.59 sqm (3,720 sqft); • Large, open plan retail space at ground and first floor levels; • Let to TUI UK Retail Ltd (5A1 Covenant); • Passing rent of £130,000 per annum (£113/sqft ITZA); • Expiry due 24 December 2022; • Excellent future development potential of upper parts (subject to planning); 1 • We are instructed to seek offers over £1,250,000 (ONE MILLION TWO HUNDRED AND FIFTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial yield of 9.82% after allowing for purchasers’ costs of 5.88%, including LBTT (Land Building and Transactions Tax). Prime Retail Investment Prime Aberdeen is widely AB10 1HE recognised as being the energy capital of Europe Aberdeen Street, 3-5 Nicholas

2 Prime Retail Investment Prime LOCATION Aberdeen is ’s third largest City and the administrative centre for north east

AB10 1HE Scotland. The City is also considered the oil capital of Europe, being the major centre for the North Sea Oil related activities. The population of Aberdeen City is in the order of 222,793 with the regional population of circa 446,660. By 2035 the population of Aberdeen city is projected to be over 271,000, an increase of 20%.

Aberdeen is the principal administrative hub as well There are two universities in Aberdeen, these are the as being widely recognised as the energy capital of and Europe and home to the UK’s Oil and Gas industry with these two institutions being the two largest where daily production is around 200,000 barrels employers outside of the oil industry. Aberdeen is

Aberdeen Street, 3-5 Nicholas of oil and gas per day. The crude oil price per barrel located on the east coast approximately 125 miles fluctuates between $60 & $70 as of April 2019 which is north of Edinburgh and 145 miles north east of a marked increase from the low level of 2014 at $28/ Glasgow. The nearest cities to Aberdeen are Dundee barrel demonstrating resurgence in the oil market (66 miles) to the south and Inverness (105 miles) to

within Aberdeen. the north B977west. Potterton

B979 A90 Blackdog A947

Kirkhill Blackburn Forest B999

ABERDEEN B997 A96 INTERNATIONAL AIRPORT

Stoneywood

3 A90 A92

Mugiemoss

Bucksburn Persley Donside Village Heathryfold Woodside Hilton Cummings Park Rosehill Kirkton of Skene Pittodrie Cornhill Stockethill Westhill Sheddocksley George Street Elrick Rosemount Summerhill A944

Footdee B9119

Craigiebuckler Ferryhill Seafield Broomhill Kingshill Wood Airyhall B979 Braeside Ruthrieston

Garthdee A90 Cults Nigg

Milltimber

Cove Bay A93 SITUATION The property is situated on the west side of St Nicholas Street at the corner of St Nicholas Lane, which is accessed immediatelyB9077 off Union Street to the south.

Marywell The St Nicholas Centre,Kirkton which of Maryculter forms part of the Bon Accord ShoppingA956 Centre and links the centre with George Street to the north and Union Street to the south, is situated within walking distance. Prime Retail Investment Prime

A90 Badentoy Park Industrial Findon Estate

Portlethen

Portlethen A92 Village

Downies Cammachmore

B979 Chapelton of Elsick Newtonhill ABERDEEN TRANSPORT CONNECTIONS Aberdeen is one of the most visited tourist and commercial destinations in the UK after London & Edinburgh, with an exceptional transport and communications network connecting it both internationally and with other cities throughout the UK.

ROAD AIR Aberdeen is well served by the A90 roads with Aberdeen Airport is approximately 6 various routes from Peterhead, Edinburgh, miles from the city centre, located in the Inverness, Dundee, Fife and Perth leading neighbouring town of Dyce, which serves directly to the city centre. In 2019, the AWPR primarily UK and European destinations. It (Aberdeen Western Peripheral Route) was is also the busiest helicopter terminal in the

opened and provides a bypass system world, serving the North Sea oil executives and AB10 1HE Aberdeen Street, 3-5 Nicholas around the city from Blackdog in the north associates. to Stonehaven in the south. The A92 south is the principal travel route for the central belt of BUS Scotland. The is located alongside the Union Square Shopping Centre with the RAIL First Group being the principal operators is located within the of c.22 services throughout the urban and city centre and is connected directly within country . The majority of Union Square Shopping Centre. The station services operate every 15-30 minutes, 7 days operates services to Glasgow, Edinburgh, a week. Inverness as well as the big 6 cities, whilst also operating the Caledonian Sleeper train to London Euston, six days a week.

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Place Distance Drive Times Dundee 62 miles 1 hr 37 mins Perth 89 miles 1 hr 45 mins Inverness 104 miles 2 hrs 33 mins Edinburgh 137 miles 2 hrs 37 mins Glasgow 146 miles 2 hrs 39 mins

Flight time to London: 1hr 30 mins Prime Retail Investment Prime RETAILING IN ABERDEEN

AB10 1HE Retailing in Aberdeen is dominated by the City Centre with the prime shopping centres of the Bon Accord and Union Square together with the Trinity Shopping Centre on Union Street, the principal retailing thoroughfare in Aberdeen, all located in the heart of the city centre.

The Bon Accord Shopping Centre is the second The Union Square Shopping Centre was newly largest shopping centre in Aberdeen. The centre developed by Hammerson in 2009 at a total cost of is split into two buildings both of which can be £250 million, making it one of the largest city centre accessed from George Street and Union Union Street. shopping developments in the It is arranged over three floors and extending to and the second largest in Scotland after Glasgow’s Aberdeen Street, 3-5 Nicholas c.630,000 sq ft (59,000 m2) of retail, food and drink Buchanan Galleries, with a total retail space of establishments. A multi-storey car park forms part of c.700,000 sqft together with multiple food and drink the centre for approximately 1,700 vehicles. establishments. Union Square is also home to and forms part of the Aberdeen Train and Bus Station. The centre is home to household brands such as Starbucks, Pret A Manger, Costa, Boots, Jo Malone, Union Square is well served by global and national John Lewis, Kurt Geiger, Jigsaw, M&S, Vision Express, brands to include Boots, New Look, H&M, Cineworld, Waterstones and many more. YO! Sushi, Starbucks, Pizza Hut, Hugo Boss, Hollister, Apple, Coast to Coast, Hugo Boss The Trinity Shopping Centre is the smallest centre and M&S. in Aberdeen, with a two-storey car park to the rear for approximately 400 vehicles and is home to approximately 45 retailers to include Primark, Debenhams, Superdrug, Trespass, Card Factory, Schuh and Flying Tiger.

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Prime Retail Investment Prime CE RA C TER NK O GBA PRIN L S L E Y G A W E E D S WIL AD A LO O T N WB A N K R A L P S E N Marischal Square is the most significant commercial development in Aberdeen in recent years, completed in 2017, it was designed to transform the centre of Aberdeen and is located AB10 1HE adjacent to the property. It’s a place where an imaginative mix of offices, quality restaurants, coffee shops, hotel, open space and art come together to create a fresh, vibrant, new destination in the heart of Aberdeen’s city centre. Marischal Square is right in the heart of the city centre on the 2.42 acre former site of HQ. This area forms a central nucleus for businesses. It also forms an area that centres around leisure; a bright open courtyard with coffee Aberdeen Street, 3-5 Nicholas shops, restaurants, covered space and public space, with gardens where people can socialise, dine out and take relaxed business meetings. The development comprises of two office buildings, named 1 and 2 Marischal Square respectively. 1 Marischal Square is the larger of the two, with a net floor space of 122,174 sq ft and 164 underground parking spaces. 2 Marischal Square has 54,677 sq ft of floor space, and 78 underground parking spaces. Besides the two office buildings, the site contains the Aberdeen Residence Inn by Marriott hotel. This corners the Provost Skene’s House Museum, with a large public green space separating the two and home to café/leisure operators to include All Bar One, Costa Coffee, Mackie’s of Scotland, Prezzo and Tony Macaroni.

6 Prime Retail Investment Prime DESCRIPTION The property comprises a prominent, end-terraced, corner building arranged over five storeys with the upper and

AB10 1HE basement floors comprising of a mix of office, storage, staff and sales space, whilst the ground floor is entirely comprised of open plan retail space. Access to the subjects is by way of a double pedestrian access door with the entire frontage being fully glazed and offering a plentiful supply of natural daylight to the property. The prominence of the return, corner frontage at the entrance to the pedestrianised pitch of St Nicholas Street is the first, modern unit directly off Union Street. Surrounding occupiers include Starbucks, M&S, Five Guys, TSB, Schuh, RBS, Caffe Nero, Sports Direct and Pandora.

ACCOMMODATION Aberdeen Street, 3-5 Nicholas We have measured the subject premises in accordance with the RICS Code of Measuring Practice (Sixth Edition) and would estimate the following approximate net internal areas:

Area/Floor Size (Sq m) Size (Sq ft) 3rd Floor – Store 53.08 571 2nd Floor – Office 24.41 263 1st Floor – Sales/Staff 84.49 909 Ground – Sales 97.64 1,051 Basement - Store 85.97 925 Total Net Internal Area 345.59 3,720 Reduced Floor Area 106.54 1,147

COVENANT INFORMATION 7 TUI UK Retail Limited have a 5A1 Dun & Bradstreet credit rating, the highest possible.

Ground Floor TENANCY SCHEDULE The property is let to TUI UK Retail Limited until 24 December 2022 incorporating a tenant only break option

on 25 December 2020, subject to 6 months’ prior written notice. If the tenant exercises their break a penalty AB10 1HE payment equivalent to 3 months’ rent, will be due. The passing rent of £130,000 per annum is paid quarterly in advance. The lease is held on Full Repairing and Insuring terms. Aberdeen Street, 3-5 Nicholas

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First Floor

Ground Floor The the property is a prominent, end-terraced, corner building arranged over five storeys and let entirely to a 5A1 covenant.

9 PROPOSAL VIEWING AND FURTHER We are instructed to seek offers over £1,250,000 (ONE INFORMATION MILLION TWO HUNDRED AND FIFTY THOUSAND Please contact the sole selling agent: POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial Sheridan yield of 9.82% after allowing for purchasers’ costs of 5.88% including LBTT (Land Building and Transactions Tax). Property Consultants TENURE The property is held on a heritable title (Scottish equivalent of English Freehold). Sheridan Property Consultants 37 One, 37 George Street, Edinburgh EH2 2HN

VAT 0131 300 0296 Our clients have elected to waive exemption for VAT and Stewart Sheridan accordingly VAT will be payable on the purchase price, 07740 940898 although we anticipate the sale will be treated as a TOGC. [email protected]

Cathal Keane 07808 627224 EPC [email protected]

The property has an EPC Rating of E. Graeme Millar 07523 512804 [email protected] LEGAL COSTS Each party will be responsible for their own legal costs incurred in connection with the transaction.

The Agent 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 the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions 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; (iii) no person in the employment of the Agents has any authority to make or give any representation or warranty whatever in relation to this property. Date of publication: June 2019