Secure Long Income Retail/Office Investment
130-132 High Street | Irvine | KA12 8AH
offers in excess of
Let to Arthur J Gallagher Insurance Brokers Ltd – Net worth £61M
New 15 year FRI lease from September 2017
Fully refurbished highly specified building
Initial rent £71,423 per annum with fixed uplift in Year 5 to £79,994 per annum
Offers in excess of £850,000, subject to contract
Attractive net initial yield of 7.99%
Irvine is North Ayrshire’s principal town with a population of approximately 33,698 people and a catchment population of 134,146 people (Census 2011). The town is located approximately 50 km (30 miles) south-west of Glasgow and 11 km (7 miles) west of Kilmarnock and benefits from excellent road links to the A78, A736, A737 and the A71 that connects with the M77 motorway providing a direct route to Glasgow City Centre.
Excellent rail links are provided with regular daily services to and from Glasgow Central Station with an average travel time of approximately 36 minutes. Glasgow Airport is located approximately 40 km (25 miles) north-east and Glasgow Prestwick International Airport approximately 14 km (9 miles) south.
The subject property is located on the east side of High Street, a short distance north of its intersection with Bridgegate & Bank Street, within the heart of Irvine town centre.
Irvine Town Centre has and continues to benefit from significant investment mainly from North Ayrshire Council and Irvine Bay Regeneration. The subject property is located 100 yards north of the award winning £2.2M Bridgegate public realm project as well as Bridgegate House, an £8.5M office refurbishment and home to North Ayrshire Council’s Customer Centre. Heading south-east beyond the Bridgegate is the “Portal”, a £20M culture, community and leisure centre built in 2017.
The subjects comprise a traditional mid-terraced building of stone construction with an extensive single storey flat roof extension at ground floor level. Externally the subjects have been fully refurbished, a new roof has been installed on the original section and the extension has been fully re-felted. 6 secure car parking spaces are found to the rear accessed via electric gates off a large public car park providing additional spaces.
Internally the accommodation provides open plan retail/office accommodation at ground level with additional well-fitted offices at first floor level and board room/meeting facilities on the second floor. New male and female toilet facilities along with kitchens have been installed at ground and second floor level.
The accommodation has been fully refurbished internally to a high standard by the landlord, to the tenant’s specification and includes new suspended ceiling grids with LG7 compliant lighting, comfort cooling, MVHR heating system and perimeter trunking.
The subjects have been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and extend to the following net internal floor areas;
|SQ M||SQ FT|
6 secure car spaces within rear car park.
Class 2 Consent of the Town and Country Planning (Scotland) Act 1997.
Heritable (Scottish equivalent of English freehold).
The subjects are let to Arthur J Gallagher Insurance Brokers Ltd on a new 15 year FRI lease commencing 1st September 2017 and expiring 31st August 2032. The initial rent is £71,423 per annum and this is increased by 12% to £79,994 per annum effective 1st September 2022. There is a tenant only break option & open-market rent review on the 10th anniversary of the date of entry.
Arthur J Gallagher Insurance Brokers Ltd (SC 108909) has reported the following trading figures;
|31st December 2016||31st December 2015|
|Pre-Tax Profit||£ 2,749,000||(£ 3,723,000)|
|Shareholder’s Funds||£ 61,069,000||£61,416,000|
Arthur J Gallagher Insurance Brokers Ltd are a global insurance broker, risk management services and consulting firm operating in 34 countries worldwide. They have an extensive network of UK offices in more than 50 locations with in excess of 4,500 employees. The Irvine office opened approximately 29 years ago and we understand is one of the best performing local offices in the country with 45 employees.
For further information please visit www.ajg.com.
Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a TOGC.
We are instructed to seek offers in excess of £850,000, exclusive of VAT and subject to contract. This reflects a net initial yield of 7.99% and a reversionary yield at the end of Year 5 of 8.95%, assuming standard purchasers costs of 5.15%
Please note that the property is the sole asset held within an SPV (Single Purpose Vehicle) and there may be an opportunity to buy the company, resulting in a saving on LBTT (Stamp Duty). Further information can be provided on request.
Let to Arthur J Gallagher Insurance Brokers Ltd – Net worth £45.5M;
New 15 year FRI lease from September 2017;
Building has been completely refurbished with warranties and guarantees available;
Fixed 12% uplift at first rent review to £79,994 per annum;
Offers over £850,000, subject to contract;
Attractive net initial yield of 7.99% and reversionary yield of 8.95%.
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