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165 - 179 High Street, Ayr
For Sale Prime Retail Investment
“Parade of 3 retail units in a prime location”
ASSET MANAGEMENT
Strong location set to be strengthened further following the redevelopment of the adjoining Kyle Shopping Centre.
Low re-based rents provide a platform for future rental growth.
Recent high quality shop refit by Hutchison 3G UK suggests commitment to the unit.
Explore a surrender deal with Country Casuals who have indicated the shop is due to close.
Agree a new longer lease with the Two’s Company Hairdresser, who sub-let the 1st floor from Country Casuals.
Recent investment transactions in the town indicate strong investor demand.
INVESTMENT SUMMARY
3 retail units in a 100% prime High Street location.
Let to national retailers Hutchisons 3G UK, Thorntons and Country Casuals.
Annual rent of £154,650 per annum with 2 units off low re-based rents of £44.22 and £41.14 psf zone A.
A number of recent lettings on the High Street demonstrate good levels of tenant demand.
Planning consent was granted in December 2014 for the alteration, extension and part change of use of the Kyle Shopping Centre to form Class 3 food & drink and Class 11 multiplex cinema. Plans include a 7 screen cinema, 45,000 sq ft food & beverage space, a large retail unit and a gym.
The location of the subject property is set to benefit significantly from the proposed redevelopment of the Kyle Shopping Centre.
Offers in excess of £1,400,000 reflecting a net initial yield of 10.46% assuming purchasers costs of 5.60%.
LOCATION
LOCATION Ayr is located 35 miles south-west of Glasgow, and is the commercial and administrative centre for South Ayrshire serving a resident population of 48,000 persons and an estimated catchment of 200,000. Communication links in the town are excellent with the M77 providing direct access to Glasgow and the A71 to the M74. Train services link Ayr to Glasgow Central Station in around 50 minutes. Prestwick Airport is 4 miles from the town which caters for 1.9 million passengers per year and the Port of Troon, which provides regular ferry services to Northern Ireland, is located 8 miles to the north.
SITUATION
The subjects are situated in a 100% prime retailing pitch on the High Street. The main retailing pitch stretches from M&S at the north end to Ayr Central Shopping Centre at the south. Surrounding national retailers include Boots, Wilko, O2, Mountain Warehouse, Bon Marche & Nationwide. The subject property backs onto the Kyle Centre which was purchased in September 2014 to facilitate a leisure redevelopment consisting of cinema, restaurants and gym uses. Planning consent has been achieved for this development. Further information can be found at http://360architecture.com/projects/retail/kyle-centre-ayr/ The main car parks serving the town centre are located close to the subject property.
TENANCY
UNIT TENANT NIA
(SQ FT) ITZA
(SQ FT) LEASE START
LEASE EXPIRY
RENT PA RENT PSF
(ZA) COMMENT
165-169 Country Casuals Ltd (t/a ‘CC’)
1,751 764 15/05/2000 14/05/2020 £53,500 £70.02 1st floor sublet to Stephanie Lynne Smith, t/a Two's Co Hairdressing, from 16/06/2006 to 15/06/2016 at a rent of £7,500 pa.
171-173 Hutchison 3G UK Ltd (t/a ‘3 Store’)
2,333 1,074 17/11/1997 16/11/2017 £47,500 £44.22 Lease extended and rebased in March 2013.
175-179 Thorntons Plc. (t/a ‘Thorntons’)
3,219 1,304 29/05/1998 28/05/2018 £53,650 £41.14 Rent re-based and tenant break not exercised in January 2013.
Total 7,302 3,151 £154,650
Country Casuals Limited (Co No 00510900) trade from 126 stores across the UK providing high-end fashion wear. They are part of the Austin Reed Group. In the year to 31/01/2014 Country Casuals Limited reported a turnover of £39,785,268 a pre-tax profit of £3,403,568 and a net worth of £12,357,794. Hutcheson 3G UK Limited (Co No 03885486) is part of the Hutchison Whampoa Limited group of companies which has mobile operations in 11 countries. It employs more than 4,400 people and trades from 347 retail stores. In the year to 30/06/2014 Hutcheson 3G UK Limited reported a turnover of £2,041,882,000 and a pre-tax profit of £166,484,000. .
ACCOMMODATION The subjects extend to the following approximate floor areas:-
Ground First Total NIA ITZA
Sq M Sq Ft Sq M Sq Ft Sq M Sq Ft Sq M Sq Ft
165-169 83.09 894 79.82 859 162.91 1,754 70.95 764
171-173 120.69 1,299 85.14 916 205.83 2,216 99.74 1,074
175-179 141.59 1,524 157.43 1,695 299.02 3,219 121.16 1,304
Thorntons Plc (Co No 00174706) trade from 249 stores with an additional 186 franchises locations throughout the UK providing a wide range of confectionery. In the year to 30/06/2014 Thorntons Plc reported a turnover of £222,437,000 a pre-tax profit of £5,968,000 and a net worth of £16,579,000
EPC copy of the EPC Reports are available.
VAT The property has been elected for VAT and therefore VAT will be payable in respect of the purchase price. We anticipate the transaction can be treated as a TOGC (Transfer of Going Concern).
TENURE Heritable (Scottish equivalent of English Freehold).
PROPOSAL Offers in excess of £1,400,000 reflecting a net initial yield of 10.46% assuming purchasers costs of 5.60%.
There have been a number of recent investment transactions on Ayr High Street including; 183/185 High Street sold for £501,000 reflecting a NIY of 8.13% in July 2015. Let to Mountain Warehouse until 31/03/2019 at £42,500 pa. Zone A rent reflects £34.05 psf. Schedule of Condition. 187/195 High Street sold for £1,250,000 reflecting a NIY of 9.48% in July 2015. Let to Vision Express and O2 with a WAULT until breaks of 3.39 years. Zone A rents reflect £48.45 and £58.37 psf respectively.
FURTHER INFORMATION For further information contact joint selling agents:
Ewan Cartwright Tom Shepherd Direct 0141 225 5709 Direct 0161 455 6321 Mobile 07930 443 596 Mobile 07789 942714 [email protected] [email protected]
David Thorburn Leo Nicholson Direct 0141 225 5711 Direct 0161 455 6556 Mobile 07964 688 144 Mobile 07780 954 846 [email protected] [email protected]
Writings (Scotland) Act: This document does not and shall not constitute, form part of, vary, or seek to vary, any contract or unilateral obligation. Misrepresentations Act: Reith Lambert and Deloitte Real Estate for themselves and the vendors or lessors of this property whose agents they give notice that ; (i) the particulars are set out as a general guidance for intended purchasers or lessees, and do not constitute any part of an offer or contract ; (ii) descriptions, dimensions, reference to condition and necessary permissions for use and occupations 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 Reith Lambert has any authority to make or give any representation of warranty whatever in relation to this property ; (iv) unless otherwise stated all prices, rents and premiums etc are quoted exclusive of Value Added Tax (VAT). Any intending purchaser or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction. These particulars have been prepared as at September 2015.
