Secure Retail Investment
8 High Street | Stewarton | Scotland | KA3 5AA
offers in excess of
Let to The Factory Shop Limited
Held on FRI lease until October 2024
Secure Income – Shareholders’ Funds £50m
Guaranteed rental uplift in October 2019
Offers in excess of £510,000, subject to contract
Attractive Net Initial Yield of 9.56%
Reversionary Yield of 10.82%
Stewarton is a town in East Ayrshire, Scotland. In comparison to the neighbouring towns of Kilmaurs, Fenwick, Dunlop and Lugton, it is a relatively large town, with a population of over 6,500. The town is situated 5 minutes’ drive west of the M77 motorway, the principal route linking Glasgow with Ayrshire. Stewarton lies approximately 20 minutes’ drive South of Glasgow and is approximately 10 km (6 miles) north of Kilmarnock.
There is a station linking to Glasgow Central and the town and surrounding area is a popular commuter location for workers travelling to Glasgow.
The building occupies a prominent position within the principal thoroughfare for the town centre on the High Street close to Avenue Square. The High Street comprises predominantly commercial properties some with residential above and other nearby occupiers include Boots The Chemist, R S McColl, Co-op, Ladbrokes and William Hill. Immediately behind the subjects are Council offices and Stewarton Community Centre. There is a Sainsbury’s supermarket located nearby adjacent to the station.
The subjects comprise a former supermarket which was converted to the current use in 2009. The building is of concrete framed construction with concrete canopy to the front and roughcast finish to the rear elevation. There is flat felt roof which was re-covered in 2009.There is a surfaced yard/car park to the rear allowing easy loading to the property.
The shop has an extensive aluminium framed glazed frontage with corporate display fascia and there is free on-street parking to the High Street with a public car park to the rear.
Internally there is a large open plan sales area with lino tiled floor and suspended acoustic tiled ceiling with fluorescent light. To the rear is storage, staff area and toilets.
We are advised the premises has a net internal floor area of 511.09 sq m (5,501 sq ft)
Heritable (Scottish equivalent of English freehold)
The property is let on a Full Repairing and Insuring lease to The Factory Shop Limited for 15 years with effect from 2nd October 2009 expiring on 1st October 2024 with no breaks.
The passing rent is £50,913 per annum and is subject to a rent review on 1st October 2019 with the proviso that the rent will increase to £57,603 per annum.
The Factory Shop Ltd (Co. No. 4176887), has reported the following figures;
|27th March 2016||27th March 2015|
The Original Factory Shop was founded in 1969 and comprises 217 ‘mini’ department stores across the UK, as well as a trading website. The business sells a wide range of branded and own sourced products across fashion, footwear, and household departments at significant discounts to a broad customer base. Stores are most often in market towns and tourist locations where they act as both a shopping destination and the major non-food retailer in the immediate locality. The group has continued its store opening program, with 4 new stores opened in the latest financial year. The group believes there is potential for at least 400 Original Factory Shop stores throughout the UK. Additionally, the Olympic Programme has continued at pace, aimed at updating the older stores within the portfolio with 78 stores now through the process. A new £34.5m financing deal was agreed by the group in the financial period, which has guaranteed a further £10m of funding. This will allow the business to continue on its growth path and is a sign of the confidence their lending providers have in the future of the business.
For further information please visit www.tofs.com.
The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking offers in excess of £510,000 (Five hundred and ten thousand pounds), subject to contract, reflecting a net initial yield of 9.56% and a reversionary yield of 10.82% in October 2019 after allowing for standard purchaser’s costs of 4.20%.
An opportunity to acquire a heritable retail investment;
The investment provides secure income - let to The Factory Shop Limited - Shareholders’ Funds £49.9 million;
Guaranteed rental increase in 2019;
Attractive unexpired lease term;
A purchase at the asking price reflects an attractive net initial yield;
The investment provides a purchaser with an attractive lot size.
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