stop 13-years-undoubted-income-high-street-fort-william - Singer Vielle Sales

Rare Highly Secure Bank Investment – assignment only to undoubted covenants

Bank of Scotland plc | 62/64 High Street | Fort William | PH33 6AE

£850,000

subject to contract

EXCHANGED

Summary

  • Rare Highly Secure Investment – assignment only to undoubted covenants

  • 13.25 years term certain

  • Let to Bank of Scotland plc

  • Prime position on the main retail street

  • Heritable interest

  • VAT free

  • 5.75% net initial yield

Location

Fort William is one of Scotland’s largest tourist and outdoor activity locations. The principal town of the North Western Scottish Highlands and commercial centre of Lochaber, Fort William is located 102 km (65 miles) west of Inverness, 171 km (107 miles) north of Glasgow and 208 km (130 miles) north-west of Edinburgh.

On the shores of Loch Linnhe Fort William is known as the ‘Outdoor Capital of the United Kingdom’. It is the gateway to Ben Nevis, the United Kingdom’s highest peak with a summit elevation of 4,406 feet above sea level, and boasts one of the most enviable and scenic settings in the whole of Scotland.

The town benefits from significant tourist trade all year round with climbers, mountain bikers, skiers and walkers taking advantage of its unique terrain when the population can swell to approximately 500,000 people. The successful development of Nevis Range ski resort in the 1990’s began to establish the town’s tourist appeal plus winning and retaining ever since the Mountain Bike World Cup continues to greatly assist the local economy.

Fort William is also a high profile film location with movies filmed in or near the town including Braveheart, Highlander, the Harry Potter series and Rob Roy.

Situation

The property is situated in a prime position on the High Street, the principal pedestrianised retail pitch for the town. The property occupies a highly prominent corner position with return frontage to Monzie Square. The surrounding occupiers includes a blend of multiple and local retailers with Boots, Edinburgh Woollen Mill, Fat Face, Lloyds Pharmacy, Clydesdale Bank, House of Scotland, Field & Trek and WH Smith all represented.

The town benefits from a large shopping catchment that encompasses a significant area including many of the adjoining islands.

Description

Comprising a highly attractive two storey property of stone construction built in approximately circa 1920. The original bank building is 62 High Street; 64 High Street was acquired by the bank for expansion in 1988.

Internally, the property is fitted out to Bank of Scotland’s corporate image with fixtures and fittings consisting of suspended ceilings with recessed flurescent lighting and air conditioning cassettes, plastered walls and a mixture of carpet and laminate flooring. The property is configured with a large banking area together with various office / meeting rooms and to the rear various staff and various storage rooms and WC’s. Further accommodation on the first floor comprises additional offices and storage accommodation.

There is a self-contained residential flat on the second floor accessed via a separate entrance from the bank and comprises two bedrooms, living room, kitchen and bathroom. We understand the manager of the bank occupies the flat.

Accommodation

We are advised the property provides the following net internal accommodation;

  Sq M Sq Ft
Ground Floor    
Zone A 183.39 1,974
Zone B 40.88 440
Remainder 41.71 449
ITZA 210.78 2,269
Total Ground Floor 265.98 2,863
     
First Floor 193.80 2,086
     
Residential Flat Not measured  
     
Total 459.78 4,949

Tenure

Heritable (Scottish equivalent of English Freehold)

Tenancy

The property is let to Bank of Scotland plc from 29th December 2016 until 28th December 2031 providing 13.25 years term certain at an initial rent of £51,500 per annum, upon full repairing and insuring terms. The lease benefits from an upwards only rent review on 29th December 2021 and 29th December 2026.

The tenant is only able to assign the lease to the Government, a Local or Public Authority, or a company which has had a Dunn & Bradstreet rating of 5A1 or better for three years.

Covenant

Bank of Scotland plc (Co. No. SC327000) has reported the following figures;

  31st December 2017
Net Interest Income £ 6,020 million
Pre-Tax Profit £ 2,804 million
Total Assets £370,073 million

Bank of Scotland plc is a direct subsidiary of HBOS plc and a wholly owned subsidiary of Lloyds Banking Group plc. It is one of the main operating companies of the Group.

Vat

The property has not been registered for VAT. Therefore, VAT will not be payable by a purchaser.

Proposal

We are instructed to seek offers of £850,000 (Eight hundred and fifty thousand pounds), subject to contract, reflecting a net initial yield of 5.75% after purchasers’ costs of 5.15%.

Investment Considerations

  1. Investment opportunity let to the undoubted covenant of Bank of Scotland plc;

  2. 13.25 years term certain from 29th December 2016;

  3. The tenant is only able to assign the lease to the Government, a Local or Public Authority, or a company which has had a Dunn & Bradstreet rating of 5A1 or better for three years.

  4. Fort William is a major Scottish tourist destination;

  5. The property occupies a prime position on the main retail street in the town centre;

  6. VAT free investment;

  7. A purchase at the asking price will provide an investor with an attractive net initial yield for a highly secure and attractive heritable investment.

Contact Us

Singer Vielle  +44 (0) 207 935 7200
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
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Douglas Wilson douglas@singervielle.co.uk +44 (0) 141 370 0284
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

Leslie Wolfson & Co. +44 (0) 141 226 4499
Andrew McCowan amcc@lesliewolfson.co.uk +44 (0) 141 270 7444
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