FOR SALE SALE & LEASEBACK CONVENIENCE STORE INVESTMENT 1-7 STATION ROAD KIRKLISTON WEST LOTHIAN EH29 9BE Sheridan Property Consultants INVESTMENT SUMMARY LOVED AND EXPERIENCED BY CUSTOMERS • Rare opportunity to acquire a prominent SINCE EARLY 1859 corner, convenience store investment; • It is the only convenience store, food offering in the town of Kirkliston; • Exceptional fixed rental uplift investment The subjects opportunity; • Situated in the heart of Kirkliston, one of the are let entirely most rapidly expanding towns in West Lothian; to Scottish • Let to Scottish Midland Co-operative Society Ltd (5A1 Covenant); Midland • New 15 year Full Repairing & Insuring Lease Co-operative with a 10 year tenant only break; • Initial passing rent of £56,820 per annum Society Limited (£12.00/sq ft); • 5 yearly rent review pattern based on CPI, capped and collared at 3%-1.5%; • We are instructed to seek offers in excess of £860,000 (EIGHT HUNDRED AND SIXTY THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 6.25%, assuming 1859 standard purchaser’s costs of 5.46% Scottish Midland Co-operative Society Ltd originated from an Edinburgh co-operative society established in 1859 and now has operations across Scotland, Northern Ireland and the North of England. DESCRIPTION The subject property is located in a prominent position at the main crossroads in the centre of Kirkliston. The unit comprises a large corner open-plan convenience store with excellent return frontage held within a modern, three storey residential development. Internally, the space has been sub-divided to allow for a large retail sales area towards the front of the store with a bakery, cold stores, office, staff facilities, loading bay doors and WC facilities to the rear. The subjects are fitted out in the corporate style of Scotmid Co-operative. SITUATION The subjects are situated on the north-east side of Station Road at the crossroad intersection with Main Street and Queensferry Road, at the principal entrance to Kirkliston from Edinburgh to the east and Winchburgh to the West. The surrounding occupiers are predominantly made up of residential dwellings with the local primary school within a ½ mile walking 2 distance. The subjects are located in a prominent position at the main crossroads in the centre of the town of Kirkliston 1-7 STATION ROAD, KIRKLISTON EH29 9BE LOCATION Kirkliston is a commuter town in West Lothian, with a resident population of approximately Edinburgh International Airport is the sixth busiest international airport in the UK and is located 5,000 persons, which continues to grow due to the town’s expansion programme. The town 3.5 miles to the south-east of Kirkliston. With over 40 airlines operating from Edinburgh, the is located approximately 7 miles west of Edinburgh City Centre and lies 1/2 mile to the south terminal offers a choice of 130 destinations across the globe and is the busiest airport in of the M90, the main arterial route linking the north of Scotland, Perthshire and Fife with the Scotland, handling more than 14.3 million passengers in 2018. capital as well as the Queensferry Crossing. On a more local level, Kirkliston is excellently served by public transport with First Bus Group’s The Queensferry Crossing is the largest infrastructure project in Scotland for a generation at 38 service to Stirling and from June 2014, Lothian Buses introduced the 63 bus which runs from an approximate cost of £1.35 billion. The bridge acts as the link for the M90 motorway across Heriot Watt University via the Gyle, Newbridge, Kirkliston and onwards to Queensferry. the Firth of Forth with the construction of 2.5 miles of new connecting roads including new and upgraded junctions at Ferrytoll in Fife, South Queensferry and Junction 1A on the M9 motorway. Kirkliston is a rapidly expanding town within West Lothian with extensive residential development underway witihin with the immediate surrounding area. There are currently two large residential developments towards the north and south of the town for approximately 180 new homes which are either already built or within the final phase of development by Walker Group and Cala Homes. STIRLING M90 DUNFERMLINE 3 M90 M80 M9 FALKIRK A90 BROXBURN CUMBERNAULD A1 EDINBURGH M80 M73 LIVINGSTON M8 M8 A7 M8 GLASGOW A71 A702 A703 M74 M77 TRAVEL DISTANCES LIVINGSTON M9 MOTORWAY DUNFERMLINE 10 MILES: 16 MINUTES 4.8 MILES: 7 MINUTES 11 MILES: 19 MINUTES EH29 9BE GLASGOW M8 MOTORWAY KIRKLISTON EDINBURGH 39 MILES: 46 MINUTES 8 MILES: 12 MINUTES 10 MILES: 28 MINUTES ACCOMMODATION TENANCY We have measured the subjects in accordance with the RICS Code The subjects are let entirely to Scottish Midland Co-operative Society Limited on a new 15 year lease incorporating of Measuring Practice (Sixth Edition) and calculate the approximate a tenant only break option on the 10th anniversary, subject to six months written notice. The lease will be held on gross internal areas as follows: Full Repairing and Insuring terms at a passing rent of £56,820 per annum, paid quarterly in advance. This equates to an overall rate of £12.00 per sqft. AREA/FLOOR SIZE (SQM) SIZE (SQFT) The rent is to be reviewed on a 5 yearly basis in line with CPI, collared and capped at 1.5% and 3% per annum. The TOTAL 439.85 4,735 tenant will have an option to extend on the same terms as the original lease, subject to 12 months notice prior to the expiry date. In terms of recent investment comparable evidence we are aware of the following transactions: TERM NET INITIAL PROPERTY RENT REVIEW PRICE DATE REMAINING YIELD Sainsburys, 5 yrly RPI linked COMPANY £57,500 Causewayside, 10 years collar and capped £980,000 6.24% Sep-18 (£14.65 psf) Edinburgh at 1-3% £254,518 INFORMATION Co-op, Crief 17 years Annual RPI 2%-4% £4,580,000 5.25% Jun-18 (£15.90 psf) The Scottish Midland Co-operative Society Limited is Scotland’s 5 yrly RPI linked largest independent co-operative and has been at the heart of £40,000 Co-op, Peterhead 11 years collar and capped £586,000 6.59% May-18 (£15.00psf) Scottish communities since 1859. The group’s retail business areas at 1-4% comprise convenience foodstores (187 branches) and a value 5 yrly RPI linked Sainsburys, Guild St, 10 years/5 yr health and beauty retailer t/a Semichem (90 branches). In addition £50,000 collar and capped £875,000 5.70% Mar-18 Aberdeen break 4 the group has a funeral undertaking business (16 branches) and a at 1-3% substantial investment property portfolio. The food stores are the Iceland, Ferniehill, £241,500 10 years OMV review £3,740,000 6.05% Mar-18 largest part in terms of both turnover and profitability and together Edinburgh (£12.95 psf) with the investment property portfolio comprise the financial 5 yrly RPI linked “backbone” of the group. £60,000 Co-op, Newburgh 15 years collar and capped £925,000 6.15% Jan-18 (£14.62 psf) at 1-3% The company employ around 5,000 people in Scotland, Northern 5 yrly CPI linked Ireland and the North of England. £45,500 Co-op, Cardross 15 years collar and capped £665,000 6.53% Dec-17 (£14.67 psf) at 1-3% STATEMENT NET SHARE HOLDER TURNOVER 8 years 5 yrly RPI linked DATE PROFIT FUNDS Tesco, Hollyrood Road, £48,792 (3 years to Review capped at £820,000 5.66% Jun-17 Edinburgh (£11.62 psf) 28-01-2018 £373,712,000 £5,547,000 £99,556,000 TBO) 4% 5 yrly CPI linked 28-01-2017 £376,169,000 £6,252,000 £91,531,000 £52,500 (£15 Co-op, Gretna 15 years collar and capped £980,000 6.52% Jun-17 psf) 30-01-2016 £370,620,000 £4,301,000 £91,473,000 at 1-4% £38,250 (£8.50 2.5% compounded Iceland, Whitburn 13.5 years £645,000 5.80% May-17 psf) annually 5 yrly CPI linked Co-op, Laurencekirk, £67,500 15 years collar and capped £1,017,000 6.30% May-17 Aberdeen (£14.81 psf) at 1-4% TENURE 5 yrly RPI linked £45,000 Co-op, Lenzie 12 years collar and capped £700,000 6.12% Apr-17 The subject property is held on a heritable title (Scottish (£14.58 psf) at 1-4% equivalent to English freehold). Sainsburys Local, £69,000 5 yrly RPI linked 11.5 years £1,138,000 5.75% Apr-16 Pollokshields, Glasgow (£15.34 psf) capped at 3.5% 1-7 STATION ROAD, KIRKLISTON EH29 9BE EPC The Energy Performance Rating of the property can be provided upon request. VAT Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price. We are instructed to seek offers in excess of £860,000 (EIGHT HUNDRED AND SIXTY THOUSAND POUNDS LEGAL COSTS Each party will be responsible for their own legal costs incurred in STERLING) exclusive of connection with the transaction. 6 VAT. A purchase at this level reflects an attractive Net Initial Yield of 6.25%, assuming standard purchaser’s costs of 5.46%. PROPOSAL 1-7 STATION ROAD, KIRKLISTON EH29 9BE VIEWING & FURTHER INFORMATION Please contact the sole selling agents: Sheridan Property Consultants 37 One 37 George Street Edinburgh EH2 2HN Tel 0131 300 0296 Stewart Sheridan: 07740 940898 Email: [email protected] Cathal Keane: 07808 627224 Email: [email protected] Graeme Millar: 07523 512804 Email: [email protected] Notice: 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.