100% PRIME RETAIL INVESTMENTFOR SALE 2-4 EASTGATE, INVERNESS- Re based rent of £150,000 per annum (£65/sq ft Zone A)

- Net initial yield of 6.42%

- Let to Bank of Scotland PLC, an undoubted 5A1 Covenant

- FRI Lease expiring 29 July 2029 (circa 10 years unexpired)

- Situated in 100% prime pitch

- Excellent opportunity to acquire a well let prime High Street retail investment in one of Scotland’s busiest tourist cities

OFFERS OVER £2.2 MILLION

ABERDEEN

INVERNESSPETERHEAD

FORT WILLIAM

OBAN

DUNDEE

STIRLING

ST ANDREWS

A7

A72

A68

A76

A1

A697

A85

A83

A9

A9

A96

A95

A82

A92

M90

M80

M9

M8

M77

M74FIRTH

OF CLYDE

FIRTHOF FORTH

GLASGOW EDINBURGH

LOCATIONInverness is the commercial, administrative and business centre for the Highlands and Islands region of Scotland. Inverness is one of the fastest growing cities in Europe with a resident population of approximately 65,000 people. The City is the retail capital of the Scottish Highlands and benefits from a primary shopping catchment of around 300,000 people. The nearest comparable retailing centre is Aberdeen which is 168 kilometres (104 miles) to the south-east. The other major Scottish cities of Edinburgh and Glasgow are located253 kilometres (157 miles) to the south and 273 kilometres(170 miles) to the south-west respectively. As the capital of the Highlands, Inverness benefits from an estimated 1.6 million tourists visiting the City every year.

COMMUNICATIONSInverness benefits from a very good transport infrastructure as summarised below.

RoadThe City is situated at the northern end of the A9 which links into Perth, the Scottish motorway network and in turn, to Edinburgh and Glasgow. The A96 provides links to Aberdeen to the east and the A82 provides links to Fort William to the south-west.

RailThe mainline railway station is situated in the City Centre providing direct access to the rail network both locally and nationally. There are direct services to Glasgow, Edinburgh and a regular sleeper service to London. To the east there are services to Aberdeen.

AirInverness Airport is located 16 kilometres (10 miles) east of the City. The Airport has directed connections and daily services to most of the major UK airports including London Heathrow, Gatwick, Luton, Manchester, Edinburgh and to Orkney, Shetland and Western Isles.

one of thefastest growingcities in Europe

current population of 65,000

wider catchment populationestimated at300,000 people

Capital of the Highlands with over 1.6m tourists visiting every year

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

ECONOMYInverness is developing as a centre of excellence for life sciences commercialisation and research. The country’s largest life sciences employer, LifeScan Scotland, is based in the City, along with the prestigious Centre for Health Science. The centre symbolises the City’s ambition to play a central role in the research and development of medical devices and bio-technology. There are more than 70 life sciences organisations operating in the Highlands and Islands with the sector worth an estimated £131 million.

As well as tourism other key business sectors include retail, construction, public administration, IT services and commercial activities related to the primary industries of forestry, agriculture, and fisheries which form an important part of the Highland economy.

Many new industries are also being attracted to the City – notably renewables with two of Scotland’s leading wave and tidal companies based in the city.

In addition to the public sector major private employers in Inverness include Lifescan Scotland (part of Johnson & Johnson), Scottish & Southern Energy, Global Energy Group (currently developing Nigg Energy Park), Orion Group and Capgemini.

TOURISMInverness is the gateway to many of Scotland’s major tourism destinations and as such tourism is a key business sector.

The population is enhanced further by the tourist industry which draws approximately 1.6 million tourists to the city each year. It is estimated that the tourism sector supports around 13,300 jobs and generates over £370m (£735m when you include the whole Highlands & Islands region) of revenue annually for the economy.

This swell in population during the summer months is best illustrated in the hotel occupancy rates which show the summer months regularly reaching full capacity.

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

A9 DUALLING(PERTH TO INVERNESS)The Scottish Government has committed to a£3 billion infrastructure project which involves the upgrading of 80 miles of single carriageway along the A9 between Perth and Inverness by 2025.

The project is well underway and is designed to deliver economic growth through improvements to road safety and journey times as well as better links to pedestrian, cycling and public transport facilities. The project will provide greater access to the many tourism and recreation sites along the route of Scotland’s longest trunk road.

UNIVERSITY OFHIGHLANDS & ISLANDSThe new facility which represents a £50 million investment occupying 18,500 sq m has created an iconic and modern environment at Beechwood Campus. A selection of courses from national certificatesto post graduate degrees are taught to over 6,500 full time and part time students from the Inverness Campus.

The commitment to the new campus also involved the creation of the first purpose built student housing accommodation in the city which by the start of the 2017 academic year reached 300 beds. The first phase of this student housing was funded by Aviva. Further information can be provided at www.invernesscampus.co.uk.

INVERNESS CITY DEALThe Scottish & UK Governments have confirmed details and pledged a £315 million commitment to Inverness and the wider Highlands area which will include improved transport links, digital connectivity and creating new skill academies,mostly in Inverness.

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

DESCRIPTIONThe property comprises a Bank of Scotland branch over ground, first and second floors. The ground floor is used as general banking space and the two upper floors are used as office accommodation for back room banking staff. The entire premises have been completely redeveloped behind the existing façade. All three floors provide open plan accommodation, accessed via the main Eastgate frontage and a secondary access from Market Brae. All three floors are serviced by a lift and two concrete staircases.

ACCOMMODATIONWe have measured the subject premises in accordance with the RICS Code of Measuring Practice (Sixth Edition) and would estimate that the subjects extend to the following areas and dimensions:

Gross Frontage 49 ft 0 ins / 14.93 mNet Frontage 44 ft 0 ins / 13.42 m

In Terms of Zone A (ITZA) we calculate a reduced area of 234.86 sq m (2,528 sq ft).

TENUREThe property is held on a heritable title (Scottish equivalent of English freehold).

FLOOR ACCOMMODATIONAREA

(SQ M)AREA

(SQ FT)

Ground Banking Hall 281.22 3,027

First Offices & Stores 229.60 2,471

SecondStaff Room, Offices,

Stores & Toilets223.32 2.404

TOTAL 734.14 7,902

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

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HARRIS

TWEED

HOUSE O

F ARAN

SLATERS

MENSW

EAR

ALBA TR

BRITISH HEART

FOUNDATION

AVEL

SITUATIONThe premises occupy a 100% prime retail location on Inverness’s principal retailing thoroughfare. The property is situated in a prominent location on Eastgate directly opposite Eastgate Shopping Centre. Occupiers in the vicinity include M&S, CEX, HSBC, Caffè Nero, Boots, Optical Express and Hotter Shoes.

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

A82

CULCABOCK

RAIGMORE HOSPITAL BEECHWOOD

inverness

CLACHNAHARRY RD

MILBURN RD

ANNFIELD RD

TELFORD ST

GLEN

URQU

HART

RD

ISLAND BANK RD

ACADEMY ST

HAUG

H RD

A9

A9

A82

VIEWING & FURTHER INFORMATION

Stephen Gunn0141 221 3500stephen@gunnproperty.co.uk

IMPORTANT NOTICE Whilst every effort has been made to ensure accuracy, no responsibility is taken for any error, omission or mis-statement in these particulars which do not constitute an offer or contract. No representation or warranty is made or given either during negotiations or in particulars by vendor, lessors or the agent. All figures are exclusive of rates, service charge, VAT and all other outgoings. August 2019.

Neil Calder01463 712239n.calder@shepherd.co.uk

FOR SALE

PRIME RETAIL INVESTMENT2-4 EASTGATE, INVERNESS

TENANCYThe lease has recently been regeared and extended with Bank of Scotland Plc on Full Repairing and Insuring terms expiring 29 July 2029. The passing rent is £150,000 per annum (£65 / sq ft Zone A). The Lease provides for upwards only rent reviews on 30 July 2024.

COVENANTThe subject property is let to Bank of Scotland. Bank of Scotland was taken over by Lloyds Banking Group in January 2009. Lloyds Banking Group is the largest retail bank in the UK. In 2018 it turned over £17bn, with profits of £5bn.

PROPOSALWe are instructed to seek offers in excess of Two Million Two Hundred Thousand Pounds (£2,200,000) exclusive of VAT for our client’s heritable interest subject to and with the benefit of the existing Lease. A purchase at this level would show an attractive net initial yield of approximately 6.42% allowing for purchasers costs.

VATOur clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price. It is anticipated the sale could be treated as a TOGC (Transfer of a Going Concern).

LEGAL COSTSEach party will be responsible for their own legal costs incurred in connection with the transaction.

EPCBand E.

LEGAL PACKFull legal pack available to interested parties.