Well-Secured Retail Investment Opportunity
474 Victoria Road | Glasgow | G42 8PE
subject to contract
Retail investment opportunity
Let to Superdrug Stores plc – 5A1 covenant
Lease expires January 2022
£475,000, subject to contract
8.0% net initial yield
Victoria Road is one of the main arterial routes linking the southside of Glasgow with the City Centre which lies approximately 3 km (2 miles) to the north.
Victoria Road is a well-established retail location serving the densely populated surrounding residential community of Queens Park, Crosshill and Strathbungo with an estimated 15,000 people residing in the neighbourhood. The area is well-served by rail and bus services with both Queens Park and Crosshill railway stations nearby.
Hampden Stadium, the home of Scottish Football, is also located within 5 minutes-walk.
The property is situated on the west side of Victoria Road between its junction with Torrisdale Street and Prince Edward Street. The property occupies a prominent main road location, with retail units located on both sides of the street. Immediately adjacent is Sainsbury’s Local and Bank of Scotland and other nearby occupiers include William Hill, Tesco Express and Farmfoods.
The property comprises a large two storey and basement sandstone building originally constructed as a post office. Comprehensively refurbished in 2012 by the tenant the interest for sale comprises the ground floor and basement of the building with the first floor in separate ownership.
The unit has a large double frontage with an open plan sales area on ground floor. A staircase and goods lift provide access to the basement which provides storage and staff facilities.
We have been provided with the following approximate net internal floor areas:
|Ground Floor||159.61 sq m (1,718 sq ft)|
|Basement||150.68 sq m (1,622 sq ft)|
|ITZA||143.07 sq m (1,540 sq ft)|
|Total||310.29 sq m (3,340 sq ft)|
Heritable (Scottish equivalent of English freehold).
The property is let to Superdrug Stores plc on a Full Repairing and Insuring lease from 16th January 2012 until 15th January 2022. The lease benefits from an upwards only rent review on 16th January 2017.
The current passing rent is £40,000 per annum.
Superdrug Stores plc (Company No 00807043) has reported the following figures:
|31st December 2015||31st December 2014|
|Turnover||£1,105 million||£1,047 million|
|Pre-Tax Profits||£56.84 million||£35.00 million|
|Shareholders’ Funds||£192 million||£152 million|
Superdrug was founded in 1964 and are the United Kingdom's second-largest beauty and health retailer currently operating over 800 stores in England, Scotland, Wales, Northern Ireland and the Republic of Ireland. They currently have 200 in-store pharmacies and employ 14,000 people.
Value Added Tax
VAT will be payable on the purchase price and we anticipate the transaction will be treated as a Transfer of a Going Concern (TOGC).
Our client is seeking offers in excess of £475,000 (Four hundred and seventy five thousand pounds), subject to contract, reflecting a net initial yield of 8.0%.
Each party shall be responsible for their own legal costs incurred in the transaction, with the purchasers responsible for LBTT.
An opportunity to acquire a retail investment let to the highly secure covenant of Superdrug Stores plc;
The property occupies a prominent main road location;
5.25 years unexpired lease term;
The property provides an ideal lot size for a private investor as well as an attractive net initial yield.
|Singer Vielle||+44 (0) 207 935 7200|
|Graham Waddellfirstname.lastname@example.org||+44 (0) 141 221 4545|
|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|
|Faye Langoulantfirstname.lastname@example.org||+44 (0) 203 478 9122|
|Louanne Malanemail@example.com||+44 (0) 203 701 1386|
Neil Munro firstname.lastname@example.org
21 West Nile Street
Glasgow, G1 2PS
Tel 0141 248 4447
|Adrienne Quinn||Adrienne.email@example.com||+44 (0)141 567 8696|