High Yielding Town Centre Investment

59 Hallcraig Street | Airdrie | ML6 6AH

£290,000

OFFERS IN EXCESS OF

SOLD

Summary

  • Situated within Airdrie Town Centre

  • Newly re-fitted children’s softplay unit t/a Crazy Castle

  • New 10 year FRI lease from May 2018

  • Initial rent £32,000pa increasing to £35,000pa in May 2020

  • No VAT on purchase price

  • Offers in excess of £290,000, subject to contract

  • Attractive net initial yield of 10.69%

Location

Airdrie is a town in North Lanarkshire, Scotland. It lies approximately 12 miles (19km) east of Glasgow city centre and forms part of a conurbation with its neighbour Coatbridge. The town is easily accessible from the M8 motorway and is also well served by rail and bus links. The town has a population of around 37,000.

Situation

The property is situated within the Town Centre and is a couple of minutes’ walk from the main retail pitch of Graham Street. The unit sits on the south side of Hallcraig Street and is directly opposite a large Council owned multi-storey car park. The car park provides 386 free car spaces and is the principal car park serving the town centre. Nearby occupiers include the Airdrie Indoor Market, William Hill, Boots, Iceland and Post Office.

Description

The subjects form part of a much larger building comprising the indoor market immediately adjacent and the retail units fronting onto Graham Street. The property has a painted roughcast finish with flat roof.

Internally the property is predominantly open plan and fitted out as children’s soft play area. There is a concrete floor throughout with carpeted finish, painted brick walls, and the ceiling is lined with pressed aluminium sheets. A gas-fired warm air heating system is installed and pendant lighting.

The unit is sub-divided to provide a large open plan play area, two “party “ rooms, fully fitted commercial kitchen and newly fitted toilets.

Accommodation

We understand the property has a gross internal floor area of 490.00 sq m (5275 sq ft). The unit also has a floor to ceiling height of approximately 6.32m (20ft 9ins).

Tenure

Heritable (Scottish equivalent of English freehold)

Tenancy

The property is let on a Full Repairing and Insuring lease to S M Softplay Limited for 10 years with effect from 1st May 2018 with no breaks. The initial rent is £32,000 per annum and this increases to £35,000 per annum effective 1st May 2020. There is also provision for a rent review in May 2023.

Covenant

S M Softplay Ltd is a new company incorporated in April 2018. The landlord holds a rental deposit of £8,000 which is held for the first 5 years of the lease.

VAT

The property is not presently opted to tax therefore VAT will not be payable on the purchase price.

Proposal

We are instructed to seek offers in excess of £290,000 (Two Hundred and Ninety Thousand Pounds), subject to contract, which reflects a net initial yield of 10.69%, rising to 11.69% in May 2020, after allowing for standard purchasers costs of 3.25%.

Investment Considerations

  1. New 10 year lease with no breaks;

  2. Situated within the Town Centre and directly opposite free car park;

  3. Only dedicated softplay centre in Airdrie;

  4. No VAT on purchase price;

  5. Very attractive net initial yield of 10.69% guaranteed to rise to 11.69% in May 2020.

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
customer service