Secure Retail Investment
84-86 High Street | Wick | KW1 4LR
offers in excess of
Let to The Factory Shop Limited
Held on FRI lease until October 2025
Secure Income – Shareholders’ Funds £50m
Guaranteed rental uplift in 2020
Offers in excess of £385,000, subject to contract
Attractive Net Initial Yield of 10.01%
Wick is located on the north east coast of Scotland approximately 95 miles north of Inverness. The town is on the main highway (the A99–A9 road) linking John o' Groats with southern Britain. The Far North railway line links Wick railway station with southern Scotland and with Thurso, the other burgh of Caithness. Wick Airport is on Wick's northern outskirts.
The main offices of The John O’Groats Journal and The Caithness Courier are located in Wick, as are Caithness General Hospital (run by NHS Highland), the Wick Carnegie Library and local offices of the Highland Council. Wick Sheriff Court is one of 16 sheriff courts serving the sheriff Dom of Grampian, Highland and Islands.
The building occupies a prominent position within the principal retail thoroughfare for the town centre on the pedestrianised section of the High Street close to Market Square. The property is found diagonally opposite the Council offices and surrounding occupiers include M & Co, Ladbrokes, Boots and Lloyds TSB.
The subject’s comprise an original three storey building, with pitched slate roof covering and integral two storey side extension with flat roof covering. The buildings are a mixture of traditional and steel framed construction with stonework / cavity brickwork walls, suspended timber upper floors and concrete ground floor.
Internally, the ground floor forms the retail area with additional retailing on the first floor. There is ancillary storage, staff rooms, office and toilets located to the upper floors. A lift is located to the rear of the premises which travels between the retail and the storage areas.
We have been provided with the following net internal floor areas;
|Ground Floor||316.04 sq m||3,402sq ft|
|First Floor||318.82 sq m||3,432 sq ft|
|Second Floor||111.00 sq m||1,195 sq ft|
|Attic||60.15 sq m||647 sq ft|
|Total||806.01 sq m||8,676 sq ft|
|ITZA||286.88 sq m||3,088 sq ft|
Heritable (Scottish equivalent of English freehold).
The property is let on a Full Repairing and Insuring lease (subject to a photographic Schedule of Condition) to The Factory Shop Limited for 15 years with effect from 18th October 2010 expiring on 17th October 2025 with no breaks.
The passing rent is £40,000 per annum and is subject to an open market rent review on 18th October 2020 with the proviso that the rent will increase by a minimum of 1% per annum and a maximum of 2.5% 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 £385,000 (Three hundred and eighty five thousand pounds), subject to contract, reflecting a net initial yield of 10.01%, after allowing for standard purchaser’s costs of 3.77%.
An opportunity to acquire a heritable retail investment;
The investment provides secure income - let to The Factory Shop Limited - Shareholders’ Funds £49.9 million;
B Listed building meaning no liability to pay Empty Property Rates;
Guaranteed minimum rental increase in 2020;
Attractive unexpired lease term;
The property occupies a prominent position within Wicks’s principal retailing pitch;
A purchase at the asking price reflects an attractive net initial yield;
The investment provides a purchaser with an attractive lot size.
|Singer Vielle Scotland||+44 (0) 141 221 4545|
|Graham Waddellfirstname.lastname@example.org||+44 (0) 203 701 1388|
|Singer Vielle||+44 (0) 207 935 7200|
|Neil Singeremail@example.com||+44 (0) 203 478 9120|
|Dale Henryfirstname.lastname@example.org||+44 (0) 203 701 1356|
|Richard Wolfrydemail@example.com||+44 (0) 203 701 1353|
|Burness Paull LLP||+44 (0) 141 273 6773|