109 PRINCES STREET EDINBURGH EH2 3AA PRIME RETAIL INVESTMENT OPPORTUNITY INVESTMENT SUMMARY Edinburgh is Scotland’s Edinburgh has a capital city and catchment spend of Prime Europe’s fourth largest retail opportunity financial centre £2.56BN Let to Increasing activity Current income of and growing rents £230,000PA Until August 2025 MILLION PEOPLE Offers in excess of 12 PER YEAR 5.25% NIY £4,130,000 after allowing for Princes Street has the highest for Absolute Ownership footfall in Edinburgh (Scottish equivalent of English freehold) purchaser’s costs 2 Cushman & Wakefield 109 Princes Street, Edinburgh 4 MILLION VISITORS PER YEAR TOURIST EXPENDITURE £334 PER VISITOR MOST PROSPEROUS UK CITY OUTSIDE LONDON 37% MORE “AFFLUENT ACHIEVERS” THAN THE SCOTTISH AVERAGE HIGHLY EDUCATED 51% OF EDINBURGH’S POPULATION HOLD A DEGREE OR PROFESSIONAL LEVEL QUALIFICATION EDINBURGH IS ONE OF THE STRONGEST RETAILING CENTRES IN 109 THE UK, DOMINATING PRINCES STREET Jenners ITS CATCHMENT OF 1.6M PEOPLE WAVERLEY MALL Princes Street George Street Lothian Road Tram line Waverley Station PRINCES STREET GEORGE STREET MULTREES WALK Princes Street is the prime retailing thoroughfare, George Street provides a unique blend of retail and Anchored by Scotland’s only Harvey Nichols attracting an excellent blend of retailers. leisure uses. In recent years the street has become store, Multrees Walk is home to up-market known for being home to a number of high quality and luxury brands. Major retailers present: House of Fraser, retailers, along with trendy bars and restaurants. Debenhams, Marks & Spencer, Next, H&M, Major retailers present: Harvey Nichols, Top Shop/Top Man, Primark Major retailers present: Jaeger, Anthropologie, Louis Vuitton, Emporio Armani, Mulberry, Hollister, Hobbs, The White Company, White Stuff, Replay, Reiss, Tesla Prime Zone A rates: £240 per sq ft Space NK, LK Bennett, Aspinal of London, Kuoni Prime Zone A rates: £200 per sq ft 4 Cushman & Wakefield 109 Princes Street, Edinburgh EVOLVING RENTAL GROWTH CITY As the catchment spend available is increasing, In the last 12 months there has been a significant increase in activity on Princes Street with eight new the city centre is evolving as a retail destination. lettings in 2016. Footlocker and Ann Summers have relocated and upsized on the street. This increase in A significant part of this evolution is the demand for space on Princes Street has seen rental levels grow up to 20%, with further upward pressure. £850 million redevelopment of the St James There is a dearth of space available in Edinburgh city centre which has shifted the balance of power in Centre. The new centre will deliver 1.7 million favour of the landlord. Consequently, relatively low rent free periods are being negotiated. A selection of sq ft of retail, hotel, leisure and residential recent transactions are noted below. accommodation. The development is due to complete post 2020. PRINCES STREET TENANT ZONE A RATE COMMENT The new St James Centre will heighten Edinburgh’s appeal as a major UK retail 10 year lease, break option year 5 destination. 10/15 Foot Locker £199 New prime rental tone for this parade 42a Smiggle £248 10 year lease NEW ENTRANTS 87 Ann Summers £247 10 year lease 94 Kiko £284 10 year lease 20 year lease 97a/98 Chisholm Hunter £174 High global rent relative to ground floor footprint 15 year lease 119 H Samuel £221 New prime rental tone for this parade 119 Card Factory £160 5 year lease Cushman & Wakefield 109 Princes Street, Edinburgh 5 LAINGS THE JEWELLER THE LE CREUSET BADGER B CO SITUATION DESCRIPTION The property occupies a prominent position within the dominant fashion pitch on Princes Street 109 Princes Street comprises an attractive Grade between the junctions of Frederick and Castle B Listed building, arranged over ground and ETEAKET PRETTY GREEN Streets, both of which link to George Street. MENSWEAR basement levels. Levi Strauss trade from the well configured ground floor and use the basement for storage. UNDER OFFER TACO MUZMATACO PRINCES STREET REFURBISHMENT Levi Straus are currently carrying out a comprehensive refurbishment of the unit, including the installation of a new shop front and high quality sales floor fit out. 6 Cushman & Wakefield 109 Princes Street, Edinburgh DESCRIPTION TENANCY TENURE The entire property is let to Levi Strauss (UK) Limited on a 10 year FRI lease The property is held Absolute Ownership (Scottish equivalent of English from 9 August 2015 until 8 August 2025. The current rent is £230,000 per freehold). annum (£216 zone A per sq ft). There is a rent review on 9 August 2020. The tenant has been in occupation since August 2005. AREA SQ M SQ FT EPC Ground floor sales 132.76 1,429 A full EPC can be provided upon request. Basement ancillary 78.04 840 Total Areas 210.80 2,269 VAT ITZA 98.85 1,064 The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated that the sale will be treated as TENANT COVENANT a Transfer Of a Going Concern (TOGC). Levi Strauss (UK) Limited Levi Strauss & Co is a global clothing company with an international portfolio of brands including Levi’s, Dockers, dENiZEN and Signature by Levi Strauss & Co. Levi Strauss & Co has over 500 stores across the globe, and in the UK Levi has over 40 stores and concessions. Levi Strauss & Co (00892419) has an Experian rating of 100, which represents “Very Low Risk”. The table below sets out recent account information. YEAR TO TURNOVER PRE-TAX NET WORTH DATE (£s) PROFIT (£s) (£s) 30 Nov 2015 46,880,000 5,467,000 28,833,000 30 Nov 2014 43,179,000 4,544,000 25,434,000 30 Nov 2013 37,733,000 4,557,000 22,434,000 Cushman & Wakefield 109 Princes Street, Edinburgh 7 PROPOSAL We are instructed to seek offers in excess of £4,130,000 (Four Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership. A purchase at this level would reflect a net initial yield of 5.25 % after allowing for purchaser’s costs of 6.06% based on Scotland’s Land and Buildings Transaction Tax (LBTT). FOR VIEWINGS & ENQUIRIES: Sarah Stewart Tel: +44 (0)131 222 4524 Email: [email protected] Erin Mills Tel: +44 (0)131 222 4564 Email: [email protected] MISREPRESENTATION ACT Cushman and 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: (i) These particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) the property is offered subject to contract and unless otherwise stated all rents and outgoings are stated exclusive of VAT (iv) Floor areas, measurements or distances given are approximate (v) 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. (vi) 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 as required. March 2017. .