Attractive Well Secured Retail Investment
157 High Street | Elgin | IV30 1DS
offers in excess of
Let to Sportswift Ltd t/a Card Factory – Net Worth £64 million
Prime town centre location
Let until September 2023 – no breaks
Tenant removed break option in September 2018
VAT free investment
Attractive net initial yield of 8.58%
Elgin, population 23,000 approximately, is a former cathedral city and Royal Burgh in Moray, situated on the south coast of the Moray Firth. It is the administrative and commercial centre for Moray, located approximately 105 km (65 miles) north-west of Aberdeen and 64 km (40 miles) north-east of Inverness. The town benefits from good road communications and is served by the A96. The town is also connected to the national railway network with services to Aberdeen, Inverness and Glasgow. Inverness Airport is approximately 48 km (30 miles) to the south-west.
The subject property occupies a 100% prime retailing pitch on the pedestrianised section of High Street, Elgin’s principal retail thoroughfare, close to the junction with North Street. Surrounding occupiers include Holland & Barrett, Boots, H Samuel, Starbucks, Trespass, Santander and Clarks.
The property is prominently situated in close proximity to the entrance to The St Giles Shopping Centre which offers a wide range of established retailers and small
specialist outlets all under one roof. Tenants include Superdrug, WH Smith, Mountain Warehouse, Argos, O2, Monsoon, Vodafone and Subway.
The property comprises a retail unit arranged over ground and part first floor, within a substantial corner building. The external elevations are of stone construction and the first and second floors comprise self-contained offices, which are currently vacant and within our clients ownership. The offices are accessed from the rear of the building.
The ground floor is predominantly utilised for sales with small storage area and staff office to the rear. The first floor provides additional good quality storage, staffroom and toilets. We understand that the first floor store area serves as overspill storage for other Card Factory units in the North of Scotland.
The property is fitted out to the tenant’s corporate standard.
We are advised that the property has the following net internal floor areas:-
|Ground Floor||202.34sq m||2,178sq ft|
|First Floor||160.65sq m||1,729sq ft|
Heritable (Scottish equivalent of English freehold).
The property is let on a Full Repairing and Insuring lease to Sportswift Ltd (t/a Card Factory) for 10 years from 9th September 2013 until 8th September 2023. The tenant has agreed to remove the break option effective 9th September 2018 and in return the rent review effective September 2018 has been waived.
The current rental is £44,750 per annum.
Sportswift Ltd (Co No 03493972) has reported the following trading figures:-
|31st January 2017||31st January 2016|
|Pre-Tax Profit||£ 81,718,000||£ 92,210,000|
|Net Worth||£ 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 go to www.cardfactory.co.uk
The property is not presently opted to tax therefore VAT will not be payable on the purchase price.
We are instructed to seek offers in excess of £500,000 (Five hundred thousand pounds), subject to contract, which reflects a net initial yield of 8.58%, after allowing for standard purchasers costs of 4.35%.
Opportunity to acquire a prime town centre investment;
Break option in 2018 removed demonstrating tenant’s commitment to the property;
VAT free investment;
Very secure covenant;
Attractive net initial yield.
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