Highly Secure Convenience Store Investment
54 Busby Road | Clarkston | G76 7AT
subject to contract
Let to Tesco Stores Ltd
Tesco lease recently extended until December 2036
Tesco Stores Ltd has Shareholders’ Funds of over £5 billion
Situated within affluent suburb of Glasgow
Opportunity to acquire entire building
VAT Free Investment
Offers in excess of £1,325,000, subject to contract
Clarkston is a popular commuter suburb within the Glasgow conurbation, south of the City Centre, with a resident population of approximately 20,000. Clarkston lies within East Renfrewshire, considered to be one of the most desirable areas to live in Scotland with some of the best schools in the country.
The A77 main Glasgow to Kilmarnock road passes through Giffnock nearby and is connected to the A727 from Paisley to East Kilbride, which passes through the centre of Clarkston, at the Eastwood Toll. Clarkston is served by two railway stations and numerous bus services connecting the area with Glasgow City Centre, East Kilbride and beyond.
Busby Road is one of the principal thoroughfares running through Clarkston and connects to the A77/M77 which leads into Glasgow City Centre. The property occupies a prominent location on the west side of Busby Road and sits directly opposite The Toll shopping parade which has decked car parking.
The area is considered a vibrant neighbourhood shopping destination for the surrounding residential occupiers and nearby occupiers include Betfred, Boots, Costa Coffee, Pizza Hut, Greggs, Bank of Scotland, and a variety of local independent traders.
The subjects compromise a modern two storey retail development spread over ground and first floor. The building is of steel portal frame construction with a bricked finished and flat roof.
The property benefits from a ground to ceiling aluminium framed shop front with access being gained via automatic sliding door. Internally, the subjects follow the corporate fitout of a Tesco branch, with a tiled finish flooring, LED lighting and air conditioning units recessed within the suspended ceiling.
To the rear of the property the subject benefits from a partitioned W/C and loading area accessed via Rowallan Lane. Access to the first floor can be gained via an internal staircase leading to further W/C and staff facilities, office space and further storage.
The ground floor sales area was refitted and refurbished in 2018.
We have calculated the property to have the following Net Internal Floor Areas:
|Sq M||Sq Ft|
Heritable (Scottish equivalent of English Freehold).
Originally let Tesco Stores Ltd (Co No 510500) on a 15 year Fully Repairing and Insuring lease with effect from December 2006. The lease has been extended until 6th December 2036, with a tenant only break option effective 6th December 2031. The current rent is £79,000pa and this will increase to £85,000pa with effect from 6th December 2021.
Thereafter the rent is subject to upward only rent reviews in December 2026 and 2031. The rent reviews are based on compounded RPI increases collared and capped at 2%pa & 4% pa.
|Minimum Rent||December 2026||£93,857|
Our client will “top-up” the rent to £85,000 per annum from the date of sale to 6th December 2021.
Tesco Stores Ltd (Co No 00519500) has reported the following trading figures;
|23rd February 2019||23rd February 2020|
|Pre-Tax Profit||£ 737,000,000||£ 417,000,000|
|Shareholder’s Funds||£ 5,623,000,000||£ 4,568,000,000|
Tesco is one of the UK’s leading supermarket chains with over 3700 stores throughout the UK and Ireland and around 340,000 employees. It is ranked in the top 10 retailers in the world.
We understand that 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 £1,325,000 (One million three hundred and twenty-five thousand pounds), subject to contract, reflecting a net initial yield of 6.06%, based on annual rental of £85,000 and reflecting standard purchaser’s costs of 5.63%.
Highly secure income from one of the world’s top retailers;
Income from Tesco guaranteed until at least December 2031;
Tesco have been in occupation since 2006 and have extended the lease term demonstrating their commitment to the location;
Guaranteed rental increases in 2026 and 2031;
VAT Free investment.
|MTL Law||+44 (0) 141 222 5793|