stop Attractive, High Yielding Retail Investment - Singer Vielle Sales

Attractive, High Yielding Retail Investment

13-15 & 19-21 Broad Street | Fraserburgh | Aberdeenshire | AB43 9AE

£490,000

OFFERS IN EXCESS OF

SOLD

Summary

  • Prime High Street investment

  • Two units let to the secure covenants of Sportswift Ltd t/a Card Factory and Mackays Stores Ltd t/a M & Co

  • Total rent of £45,500 per annum

  • Card Factory lease recently extended

  • Both units let on FRI leases

  • Offers in excess of £490,000, subject to contract

  • Attractive net initial yield of 8.90%

Location

Fraserburgh is located approximately 40 miles (60 km) north of Aberdeen and 17 miles (25 km) north of Peterhead. It is a traditional fishing town, is the largest shellfish port in Scotland and one of the largest in Europe. The town is the second largest in Aberdeenshire with a population of circa 13,000 and an economy based on fishing and engineering. It is also a key centre for commercial and public service facilities.

Situation

The property is situated on the north side of Broad Street, which is the principal thoroughfare in Fraserburgh. There is retailing on both sides of the street and the subjects occupy a 100% prime pitch within the Town Centre.

Nearby occupiers include Santander, Boots, Iceland and Superdrug.

Description

The subjects comprise two adjoining retail units.

No. 13-15 is a purpose built unit over ground and first floors with a traditional ashlared granite façade set below a pitched slate roof. There is a single storey extension to the rear with flat felt roof. The unit has ground floor open plan sales accommodation with ancillary storage at first floor.

No 19-21 is of more traditional granite stone construction with a pitched slate roof. The tenant trades over ground floor only and the 1st and 2nd floors comprise residential flats which do not form part of the sale.

Accommodation

The units provide the following accommodation measured on a net internal basis in accordance with RICS Code of Measuring Practice (6th Edition).

13-15 Broad Street
Gross Frontage 10.08m (33ft 1in)
Net Frontage 9.27m (30ft 5in)
Ground Floor 239.22 sq m (2,575 sq ft)
First Floor 83.61 sq m ( 900 sq ft)
Total NIA 322.83 sq m (3,475 sq ft)
ITZA 140.28 sq m (1,510 sq ft)

 

19 Broad Street
Gross Frontage 6.52m (21ft 5in)
Net Frontage 5.56m (18ft 3in)
Ground Floor NIA 101.82sq m (1,096 sq ft)
ITZA 62.34sq m ( 671 sq ft)

Tenure

Heritable (Scottish equivalent of English freehold).

Tenancy

The properties are held on separate occupational leases as follows:-

13-15 Broad Street

Let on a Full Repairing and Insuring lease to Mackays Stores Ltd (trading as M & Co) on a 5 year lease extension from 24th June 2017 until 23rd June 2022. The current rent is £30,000 per annum, equivalent to £18.87 per sq ft. The tenant has been in occupation of the unit since 1988.

19-21 Broad Street

Let on a Full Repairing and Insuring lease to Sportswift Ltd (trading as Card Factory) originally from 18th August 2014 until 18th August 2019. The lease has recently been extended and now expires on 17th August 2024. The current rent is £13,000 per annum and this will increase to £15,500 per annum with effect from 17th February 2020 and to £16,000 per annum on 18th August 2021. The tenant currently pays a concessionary rent and the landlord will make up the shortfall in rent so that the purchaser will receive £15,500 per annum from the date of purchase.

Therefore, an investor will benefit from a total income of £45,500 per annum.

Covenant

The companies have reported the following trading figures;

Sportswift Ltd (Co No 03493972)

  31st Jan 2017 31st Jan 2016
Turnover £379,540,000 £362,226,000
Pre-Tax Profit £ 81,718,000 £ 92,210,000
Shareholders’ Funds £ 63,661,000 £ 83,747,000


Card Factory are the leading specialist retailer of greetings cards, gift dressings and party products in the UK and now have over 850 stores in both the UK and Ireland, with new stores opening every year. For further information visit www.cardfactory.co.uk.

Mackays Stores Ltd (Co No SC036368)

  24th Feb 2017 24th Feb 2016
Turnover £165,611,000 £163,177,000
Pre-Tax Profit £ 1,100,000 (£ 355,000)
Shareholders Funds £ 36,441,000 £ 31,682,000


Mackays Stores Ltd is part of the Mackays Stores Group. The first Mackays store opened 50 years ago and the current chain has grown organically from a small family business of just 6 stores to almost 300. Between 2005 and 2007, the store portfolio was expanded and upgraded, and Mackays successfully re-branded to the more contemporary M&Co fascia.

They currently employ more than 3,900 staff, with 3,500 of those based in-store and the remainder in their Inchinnan Head Office (beside Glasgow Airport), or in the London Buying Office. M&Co is known for its family culture, which nurtures some extremely loyal customers. In the Sunday Times “Best Companies” survey in 2017 they were ranked 14th best in “Big Company to work for in the UK”.

In a recent press release Mackays Stores Group confirmed a rise in turnover and pre-tax profit to the year end February 2018.

http://www.heraldscotland.com/business_hq/16683961.mco-owner-achieves-profit-rise-as-sales-grow/

VAT

The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC)

Proposal

We are instructed to seek offers in excess of £490,000 (Four Hundred and Ninety Thousand Pounds), subject to contract, which reflects a net initial yield of 8.90% after allowing for standard purchasers costs of 4.51%.

Investment Considerations

  1. Opportunity to acquire two units let to well-established covenants;

  2. Let off market rents with reversionary rent on M & Co unit;

  3. Situated within a prime position in the town;

  4. M & Co been in occupation since 1988;

  5. Attractive lot size and initial yield.

Contact us

Singer Vielle   +44 (0) 207 935 7200
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Douglas Wilson douglas@singervielle.co.uk +44 (0) 141 370 0284
Neil Singer neil@singervielle.co.uk  +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Ed Jeffs ed@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

 

Vendor's Solicitor

PRP Solicitors  
David Morris DavidMorris@prp-legal.co.uk +44 (0) 141 331 4510

Joint Agent



Gavin Anderson - gavin@wbf.co.uk
+44 (0) 141 221 6161

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