Highly Secure Leisure Investment
202 High Street | Ayr | KA7 1RH
offers in excess of
Let to Luxury Leisure – Shareholders Funds in excess of £31 Million
Lease until December 2033 (tenant break option December 2028)
Prominent Position within High Street
Tenant been in occupation for over 25 years
Offers in excess of £550,000, subject to contract
Attractive Net Initial Yield of 8.68%
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 (50 km) 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.
The subjects occupy a prominent position on the east side of High Street, the principal retail street running north/south through the town and comprises a mix of national retailers and independent operators. Nearby occupiers include Waterstones, Tesco, Boots, Bank of Scotland, Vodafone and O2.
There are major redevelopment and regeneration proposals for Ayr Town Centre. The owners of The Kyle Centre, which sits directly opposite the subjects, have recently secured Planning Consent for the redevelopment of the Centre with approval granted for a brand new, state of the art, eight-screen cinema with plans for bars and restaurants, leisure activities such as virtual reality, soft play, indoor golf experience and a refurbished car park.
The cinema will be operated by The Arc Cinema www.cinematech.today/index.php/2021/02/22/the-arc-cinema-signs-up-at-ayrs-kyle-centre-development/.
The subjects comprise a large rectangular ground floor unit with ancillary flat/storage accommodation above. The unit has a double frontage with central entrance door, with pitched slate roof over the front building and flat roof to the rear extensions. There is a small car park to the rear accessed from Mill Wynd.
Internally the subjects comprise open plan sales area, with partitioned area beyond with sunbed rooms and ancillary offices and toilets to the rear. The unit is regular in shape and the sales area is fitted to the tenant’s corporate standard with air conditioning installed.
We have measured the premises and calculated the following Net Internal floor areas:
|Sales Area||117.37 sq m||1,263 sq ft|
|Mid Area||55.75 sq m||600 sq ft|
|Rear Area||37.87 sq m||408 sq ft|
|Total||210.99 sq m||2,271 sq ft|
|ITZA (excluding 1st floor)||104.33 sq ft||1,123 sq ft|
|First Floor||51.93 sq m||559 sq ft|
Heritable (Scottish equivalent of English freehold).
The subjects are let on a Fully Repairing Lease to Luxury Leisure for 15 years from 25th December 2018 until 25th December 2033. The tenant has a break option effective 25th December 2028, on serving 6 months prior written notice.
The passing rent is £50,000 pa. and there are rent reviews effective December 2023 and 2028.
N.B. The tenant continued to pay the rent throughout the pandemic.
Luxury Leisure (Co 02448035) has reported the following trading figures;
|31st December 2019||31st December 2018|
Luxury Leisure Talarius, trading as Admiral, is a market leading provider of slots and gaming entertainment in the UK. Boasting over 230 high street and seaside gaming venues, Admiral offers the ultimate gaming experience, showcasing the best casino and classic slot games available on both the most technologically advanced slot machines and traditional “fruit machines.” Luxury Leisure Talarius is also home to Kwik Tan, a market leading UV Tanning service.
The property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seeks offers in excess £550,000 (Five Hundred and Fifty Thousand Pounds) exclusive of VAT, in respect of our clients Heritable Interest in the property, with the benefit of the existing lease. This reflects an attractive Net Initial Yield of 8.56% after deduction of conventional purchaser’s costs.
Let to excellent covenant of Luxury Leisure – Shareholders Funds of £31M;
Fully Repairing and Insuring lease until 2033;
Directly opposite Kyle Centre which will be redeveloped as a cinema complex, complementing the tenant’s trade;
Opportunity to “take back” the first floor flat and refurbish for lease/sale;
Attractive net yield of 8.68%.
|DWF Solicitors||+44 (0) 131 474 2395|