stop well-secured-city-centre-retail-investment-aberdeen - Singer Vielle Sales

Well Secured City Centre Retail Investment

395 Union Street | Aberdeen | AB11 6BX

£525,000

subject to contract

SOLD

Summary

  • Let until November 2023 with no breaks

  • Let to undoubted covenant of Virgin Money plc

  • Shareholders’ Funds in excess of £1.7billion

  • Tenant recently removed break option in November 2018

  • Re-fitted unit in principal retail thoroughfare of Aberdeen

  • Category B listed Building so no liability for Empty Property Rates

  • VAT free investment

  • Attractive net initial yield of 8.02%

Location

Aberdeen is located approximately 180 km (125 miles) north of Edinburgh and 210km (145 miles) north east of Glasgow. The city benefits from excellent road communications with the A90 and A96 offering direct links to Dundee and Inverness. In addition, the city is connected to the national rail network with direct services to London Kings Cross with a fastest journey time of 4 hours 20 minutes. Aberdeen International Airport is approximately 9.6 km (6 miles) north-west of the city centre and is used by around 3 million passengers a year for scheduled and charter holiday flights.

Aberdeen city & Shire is the third largest city region in Scotland and home to almost 0.5 million people of which 230,000 live in Aberdeen. Aberdeen is one of the world's top five energy cities and has been ranked as one of the UK's most competitive cities with innovative industries, excellent academic and research capabilities and a highly skilled workforce. Alongside continued investment in energy, life sciences, tourism and hospitability, food, drink and agriculture, digital and the creative sectors are industries on the rise (Source: Aberdeen City Council).

Situation

The subjects are located on the south side of Union Street between the junctions with Bon Accord Street and Bon Accord Terrace in the heart of Aberdeen City Centre. Union Street is the principal thoroughfare running through Aberdeen City Centre and nearby occupiers include Pizza Express, Nat West Bank, W H Smith and a variety of independent retailers and restaurants.

Description

The property comprises a ground floor retail unit within a 3 storey building of traditional granite construction under a flat felt covered roof. The upper floors are occupied as offices and are in separate ownership.. The unit has a modern glazed frontage with corporate display fascia.

Internally, the premises has recently been fully re-fitted to the latest corporate standard for Virgin Money. The accommodation comprises front sales area, 5 meeting rooms with staffroom, ladies and gents and disabled toilets to the rear.

The tenant is proposing to spend in excess of £100,000 on internal refurbishment and upgrading including installation of new air conditioning system and an ATM.

Accommodation

We are advised that the property has a net internal floor area of 179.80 sq m (1,936 sq ft) and an ITZA of 101.73 sq m (1,095 sq ft)

Tenure

Heritable (Scottish equivalent of English freehold)

Tenancy

The property is let on a Full Repairing and Insuring lease to Virgin Money Plc for 10 years from 7th November 2013 expiring on 6th November 2023 at a passing rent of £44,000pa. There is provision for a rent review effective 7th November 2018 and the tenant also had a break option in November 2018 which they have agreed to remove, for a capital payment of £22,000, demonstrating their commitment to the property.

Covenant

Virgin Money Plc (Co No 06952311) has reported the following trading figures;

  31st December 2016 31st December 2015
Turnover £526,300,000 £479,700,000
Pre-Tax Profit £159,700,000 £116,000,000
Shareholder’s Funds £1,691,200,000 £1,328,700,000

Virgin Money plc is a UK-based bank and financial services company owned by the Virgin Group and founded by Sir Richard Branson in March 1995. It was originally known as Virgin Direct. In the 2000s Virgin Money expanded its operations around the world.

Virgin Money announced plans to become a retail bank, and bought Northern Rock plc in January 2012 and rebranded the business as Virgin Money. The holding company for Virgin Money, Virgin Money Holdings (UK) plc, is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index

For further information go to www.uk.virginmoney.com

VAT

The property is not presently opted to tax therefore VAT will not be payable on the purchase price.

Proposal

We are instructed to seek offers in excess of £525,000 (Five hundred and twenty five thousand pounds), subject to contract, which reflects a net initial yield of 8.02%, after allowing for standard purchasers costs of 4.25%.

Investment Considerations

  1. An opportunity to acquire a secure retail investment in the heart of Aberdeen City Centre

  2. Let to the very strong covenant of Virgin Money plc

  3. The tenant has demonstrated their commitment to the property by removing the break option and undertaking a comprehensive re-fit of the unit

  4. Tenant undertaking capital improvements to the property

  5. Shareholder’s funds of nearly £1.7billion

  6. Ideal lot size for private investors, SIPP purchase

  7. Category B listed Building so no liability for Empty Property Rates

  8. No VAT payable on the purchase price

  9. Similar property at 127 Union Street, Aberdeen let to EE with only 4 ½ years term certain sold in June 2017 for net yield of 8%

  10. Attractive net initial yield of 8.02%

Contact Us

Singer Vielle   +44 (0) 207 935 7200
Graham Waddell graham@singervielle.co.uk +44 (0) 141 221 4545
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353
Faye Langoulant faye@singervielle.co.uk +44 (0) 203 478 9122
Louanne Malan louanne@singervielle.co.uk +44 (0) 203 701 1386

Vendors Solicitor

PRP Solicitors +44 (0) 141 331 4510
David Morris DavidMorris@prp-legal.co.uk

 

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