stop Well-Secured Retail Investment For Sale - Singer Vielle Sales

Well-Secured Retail Investment Opportunity

93-95 High Street | Ayr | KA7 1QL

£400,000

offers in excess of

SOLD

Summary

  • High Street retail investment

  • Let to Coral Racing Limited

  • Shareholders’ Funds £299 million

  • In excess of 5.25 years unexpired lease term

  • July 2016 break option not exercised by tenant

  • Offers in excess of £400,000, subject to contract

  • 9.63% net initial yield

Location

The coastal town of Ayr has a population of 46,000 and is situated on the West coast of Scotland. Glasgow is approximately 36 miles (50km) to the north east and is easily accessible via the A77. Ayr is 3 miles (5 km) south of Glasgow Prestwick International Airport and benefits from excellent road and rail links, with regular train services to Glasgow and Edinburgh.

Ayr is the administrative centre for South Ayrshire and benefits from a large tourist trade given its close proximity to both Troon and Turnberry Open Golf Championship venues and is also immediately adjacent to Alloway – the birthplace of Robert Burns.

Situation

The subjects are situated on the west side of High Street on the pedestrianised section close to the junction with Newmarket Street in the heart of the town centre. The High Street is the principal retail street running north/south through the town. High Street comprises a mix of national retailers and independent operators and nearby occupiers include Santander, Superdrug, Boots, McColl’s and Marks & Spencer.

There are major redevelopment and regeneration proposals for Ayr Town Centre which will further enhance the location of the subjects.

Description

The subjects comprise a mid-terraced traditional building with rear two storey extension arranged over ground and two upper floors. The front elevation is of painted stone and there is a pitched roof to the main building with slate covering. The extension has roughcast finish to walls and flat felt roof.

The unit has a modern corporate fit-out with modern frontage.

Internally the ground floor comprises predominantly open place sales space, with customer toilets to the rear. The upper floors are used for staff training, storage, staffroom etc

Accommodation

We have measured the property and calculated the following net internal floor areas:

Ground Floor 144.96 sq m (1,560 sq ft)
First Floor 144.09 sq m (1,551 sq ft)
Second Floor 45.09 sq m (   485 sq ft)
   
Total 334.14 sq m (3,596 sq ft)
   
ITZA 112.32 sq m (1,209 sq ft)

Tenure

Feuhold (Scottish equivalent of English freehold)

Tenancy

The property is let to Coral Racing Limited on a full repairing and insuring lease (subject to a Schedule of Condition) for a term of 10 years from 1st July 2011. There is provision for an upwards only rent review on 1st July 2016. The tenant had an option to terminate the lease on 1st July 2016 and this option was not exercised demonstrating the tenant’s commitment to the unit.

The current passing rent is £40,000 per annum.

Covenant

The tenant, Coral Racing Limited (Co. No.00541600 ) has reported the following figures:

Year Ending September 2014 September 2013
Turnover £668 million £628 million
Pre-Tax Profits £56.70 million £81.62 million
Shareholders’ Funds £299 million £239 million


Coral Racing is the UK’s third largest bookmaker with over 1800 shops in the UK. It is reported that Coral are in discussions to merge with Ladbrokes.  

For further information please visit www.coral.co.uk

Proposal

Our client is seeking offers in excess of £400,000 (Four Hundred and Twenty Thousand Pounds), subject to contract, reflecting a net initial yield of 9.63%.

Value Added Tax

VAT will be payable on the purchase price and we anticipate the transaction will be treated as a Transfer of a Going Concern (TOGC).

Investment Considerations

  1. High Street retail investment;

  2. Let off re-based rent;

  3. Recent break option not exercised, demonstrating tenant’s commitment to the property;

  4. Highly secure income – Coral Racing Ltd (Pre-Tax Profits £56.7 million);

  5. Small lot size suitable for private investor;

  6. Attractive net initial yield.


Legal Costs

Each party shall be responsible for their own legal costs incurred in the transaction, with the purchasers responsible for SDLT. 

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Neil Singer neil@singervielle.co.uk  +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@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

  

Vendors Solicitor

J. & A. Boyd Solicitors & Notaries  
Michael Johnston jmjlaw@ayrlaw.co.uk 01292 265073

 

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