Well-secured Trade Counter Opportunity
Unit 1-2 Alma Street | Forge Trade Park | Glasgow | G40 2UB
offers in excess of
Let to Kwik-Fit (GB) Limited – Shareholders’ Funds in excess £125m
FRI Lease until August 2024 – no breaks
Modern light-industrial unit
Offers in excess of £900,000, subject to contract
Attractive net initial yield of 8.52%
Glasgow is Scotland’s largest city, with a primary catchment population of 1.86m people and is the third largest urban conurbation in the UK, contributing substantially to both the Scottish and UK economies. The city is situated on the River Clyde, some 67 km (42 miles) to the west of Edinburgh.
Forge Trade Park is located in the east end of Glasgow, approximately 3 km (2 miles) from Glasgow City Centre. The property is easily accessible from the M8 motorway approximately 2 km (1.25 miles) to the north and the M74 approximately 2 km (1.25 miles) to the south.
The property occupies a prominent corner location at the junction of Fielden Street and Alma Street, within the Parkhead area of Glasgow. The surrounding area is a high density mixed use area with the Forge Retail Park located approximately 200 metres from the subjects. The area has benefited from significant improvements to the surrounding infrastructure as a result of the 2014 Commonwealth Games, with a new and improved road network. The new Emirates Indoor Arena is nearby as is Celtic Park.
The other occupiers within the trade park comprise Screwfix, Toolstation, The Paint Shed and First Bus, with Jewsons and George Boyd nearby.
The building comprises an end-terraced unit within a modern terrace of trade counter properties. The property was completely re-developed in 2008 and is of modern steel portal frame construction with pressed aluminium sheet clad walls and roof. There is a dedicated yard with 17 car spaces.
Internally the unit comprises large open plan warehouse with small office/reception area and staffroom/toilet block.
The unit has a gross internal floor area of approximately 982.72 sq m (10,578 sq ft).
The property is held on a long ground lease from City Property Glasgow (Investments) LLP expiring 30 September 2136. The rent is subject to 5 yearly upward only rent reviews to Open Market Rental Value, with the next review due 28th November 2020.
The current rent is £7516 per annum.
The property is let to Kwik-Fit (GB) Limited on a 15 year Full Repairing and Insuring lease from 18th August 2009 expiring 17th August 2024, with no breaks.
The current rent is £76,941 per annum and there is a fixed increase in 18th August 2019 to £88,477 per annum. The seller will “top-up” the rent to the increased level from the date of purchase, therefore the investor will benefit from a net rent of £80,961 per annum.
Kwik-Fit (GB) Limited (Co No 01009184) has reported the following trading figures;
|31st March 2018||31st March 2017|
|Pre-Tax Profit||£ 54,371,000||£ 18,605,000|
|Shareholder’s Funds||£125,875,000||£ 77,769,000|
Kwik Fit is a car servicing and repair company in the United Kingdom, specialising in tyres, brakes, exhausts, MOT testing, car servicing etc. The company was founded in 1971 and is now owned by PAI Partners, a leading French based private equity firm and there are over 600 Kwik Fit centres within the United Kingdom and Ireland.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers in excess of £900,000 (Nine Hundred Thousand Pounds), subject to contract, which reflects a net initial yield of 8.52%, based on a net rent of £80,961 per annum, after allowing for standard purchasers costs of 5.25%
Let to the undoubted covenant of Kwik-Fit (GB) Ltd;
Opportunity to extend existing lease;
Potential to buy out existing ground lease to create freehold property;
Secure income until August 2024;
Attractive net initial yield of 8.52%
|Ashleigh Farrell||Ashleigh.firstname.lastname@example.org||+44 (0) 141 228 8332|