Prime Supermarket Investment94 Nicolson Street / Edinburgh / EH8 9EW
SITUATED IN THE HEART OF EDINBURGH’S “OLD TOWN”
94 Nicolson Street / Edinburgh / EH8 9EW
INVESTMENT SUMMARY Prime supermarket investment located in Edinburgh city centre
Situated in the heart of Edinburgh’s “Old Town” on one of the main arterial routes into Edinburgh city centre
Vibrant and affluent residential area with a significant student population due to the close proximity to the University of Edinburgh’s “Central Area Campus”
Fully let to Tesco Stores Limited on a FRI lease expiring 2nd February 2025
The property has averaged rental growth of 4.67% pa over the last 15 years
Passing rent of £317,500 per annum (£19.00 per sq ft)
Absolute Ownership (Scottish equivalent of English Freehold)
Offers in excess of £5,450,000 (Five Million, Four Hundred and Fifty Thousand Pounds Sterling), representing an attractive Net Initial Yield of 5.49% after allowing for standard purchaser’s costs based on LBTT
LOCATION Edinburgh, Scotland’s capital city, sits at the heart of a diverse regional economy which provides the seat of Scotland’s Government, is the home to the nation’s legal system and is a globally recognised financial centre. The city has a population of approximately 486,000 people which is predicted to grow to over 600,000 by 2033, with a regional catchment of over 1.6million.
Edinburgh attracts 3.5million tourists per annum and is the second most visited city in the UK after London. In addition, the city is host to the world’s largest annual arts festival, adding an estimated £245million to the local economy.
Edinburgh is a globally recognised higher education city, hosting 4 significant universities with approximately 47,000 full time students. The University of Edinburgh (including Edinburgh College of Art) has almost 25,000 full time students and is ranked 17th in the world according to the latest QS World University rankings.
94 Nicolson Street / Edinburgh / EH8 9EW
VIBRANT AND AFFLUENT RESIDENTIAL AREA
WITH A SIGNIFICANT STUDENT POPULATION
94 Nicolson Street / Edinburgh / EH8 9EW
1. Subject Property2. University of Edinburgh Central Campus3. Edinburgh Old College4. Festival Theatre5. National Museum of Scotland6. Edinburgh Waverley Train Station
7. Princes Street Gardens8. Princes Street9. Edinburgh Castle10. George Street11. West End12. Exchange Financial District
13. George Heriot’s School14. Quartermile15. The Meadows
Tram line Bus route
1
10
9
7
6
5
2
14
15
13
12
11
4
3
8
SITUATION Nicolson Street is located in Edinburgh city centre, approximately 0.5 miles west of Holyrood Park and 0.7 miles south of Princes Street. The street forms a continuation of South Bridge, leading south from Princes Street and is a vibrant residential and retail location. The subjects are situated in a prominent position on the east side of Nicolson Street, south of Nicolson Square and close to the junction with West Nicolson Street. Nearby occupiers include Starbucks, Holland & Barrett, Scotmid, Greggs, Superdrug and Lidl.
The property is situated less than 5 minutes walk from the University of Edinburgh’s central campus which is considered the principal university area and is also a key location for the annual Edinburgh Festival Fringe during the month of August.
94 Nicolson Street / Edinburgh / EH8 9EW
CHAMBERS STREET
MURRAYFIELD
RUGBY
STADIUM
Edinburgh Castle
HIGH STREET
MORRISON ST
NO
RTH B
RIDG
E
LOT
HIA
N R
OA
D
CA
ST
LE ST
G EO RG E STR E E T
QUEENSFERRY ST
CHARLOTTE
HA
NO
VE
R ST
ST ANDREW
MULTREES WALK
SQUAREB
ROU
GH
TON ST
SQUARE
QUE E N STR E E T
ST JAMESCENTRE
Waverley
Station
WEST M
AITLAND S
T
B ROUG H TON R D
EYR E PL ACE
ROYA L BOTA N ICG A R D E N S
Wa ter o f Le i th
H E N DE RSON ROW
CO M E LY BA N K
BR
AN
DO
N S
THaymarketStation
FOUNTAINBRIDGE
SEMPLE ST
L A U R I STON P L ACE
GRASSMARKET
WEST PORT
CASTLE TERR
BREAD ST
LADY LAWSON ST
ROSE STR E E T
H I LL STTH I STLE ST
TH I STLE ST
TH
E MO
UN
D
FR
ED
ER
ICK S
T
LON DON R D
LE ITH W
ALK
PI LR IG STREET
MCDO
NALD RO
AD
R E G E NT R D
CALTON RD
CANONGATE
CALTON HILL
ELM R
OW
EA
ST
ER
RO
AD
HOLYROOD ROAD
HOLYROOD PALACE
THE SCOTTISH
PARLIAMENT
TORPHICHEN ST
GRO
VE ST
WEST
APPROACH ROAD
GEO
RGE IV B
RIDG
E
PLEASA
NC
E
NICO
LSON
STREET
PONTON ST
GILMORE PLACE MELVILLE DRIVE
MEADOWS
BRUNTSFIELD PLACE
ST LEON
NA
RD
S
BRUNTSFIELD LINKS
H E R IOT ROW
E A ST LON DON ST
NO RTH U M B E RL A N D ST
GREAT KING ST
CU M B E RL A N D ST
EAST CLAREM
ONT ST
WARR ISTON ROAD
INV
ER
LEITH
RO
W
ST STEPH
EN ST
HO
WE S
T
ST V
INC
EN
T ST
CIR
CUS L A N E
GLO
UC
ES
TER LA
NE
G LE NO G LE ROAD
F E TT E S ROW
DU
ND
AS S
T
RODNEY STREET
UN
ION STREET
MELVILLE ST
CHAMBERS STREET
Q UE E N S F E RRY R D
DEAN PARK CRESCENT
R AE B U R N PLACE
G RA NG ECR I CK E T
CLU B
WEST APPROACH ROAD
GORGIE ROAD
SLATEFORD ROAD
ANGLE PARK TERRACE
CRAIGLEITH PARK
DALR
Y RO
AD
DUNDEE ST
POLWARTH GARDENS
POLWARTH TERRM
ERCHISTON AVENUE
VIEWFO
RTH
ROSEBURN TERRACECORSTORPHINE ROAD
QUEENSFERRY ROAD
RAVELSTON TERRACE
CHESTER STREET
A LBY N P L
WEST COATES HAYMARKET TERRACE
MARKET STREET
OR
CHA
RD B
RA
ELE
AR
MO
NTH
AV
E
CO
ME
LY BA
NK A
VE
LEA
RM
ON
TH
GR
OV
E
LE A R MO N TH G DN S
S LE A RM ONTH GDN S
LEARMONTH T LN
MO
RAY PLACE
THE
PRINCES STREET
SHANDWICK P
L
YO RK PL ACE
DESCRIPTION The property comprises a ground floor retail unit within an attractive Grade B Listed building. Internally the unit has been fitted out to the tenant’s usual corporate style with ancillary storage and office accommodation to the rear. The property benefits from a substantial frontage and main entrance onto Nicolson Street, with service access to the rear.
The subjects have been measured on a gross internal area basis in accordance with RICS Code of Measuring Practice (Sixth Edition) and the approximate areas are as follows:
Area Sq M Sq Ft
Ground Floor 1,552.97 16,716
94 Nicolson Street / Edinburgh / EH8 9EW
TENURE The property is held Absolute Ownership (Scottish equivalent of English Freehold).
TENANCY The entire property is let to Tesco Stores Limited, trading as Tesco Metro, until 2nd February 2025, with 5 yearly upward only rent reviews to Open Market Value. The current passing rent is £317,500 per annum, which was agreed at review on 2nd February 2015.
RENTAL GROWTH Due to the exceptionally strong fundamentals of the location and the excellent trading performance of the store, the property has demonstrated consistently high levels of rental growth, as shown in the table below:
YEAR Rent (per annum)
2000 £160,000
2005 £240,000
2010 £290,000
2015 £317,500
Average Rental Growth (per annum) = 4.67%.
TENANT COVENANT Tesco is the UK’s dominant supermarket operator, with a market share of 29.1%. The company was founded in 1919 and now trades from over 3,350 stores across the UK, employing over 310,000 people.
Tesco Stores Limited (Company Number 00519500) has a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure.
Year Ending26th February 2012
(000s)25th February 2013
(000s)23rd February 2014
(000s)
Turnover £41,981,000 £42,662,000 £42,547,000
Pre-Tax Profit £2,126,000 £921,000 £1,696,000
Total Net Worth £6,894,000 £3,113,000 £3,038,000
Misrepresentations Act 1967 Cushman & Wakefield, their clients and any joint agents give notice that: (i) These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agents(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) Floor areas, measurements or distances given are approximate. Unless otherwise stated, any rents, or outgoings quoted are exclusive of VAT. (iv) Any descriptions given of the property cannot be taken to imply, it is in good repair, has all necessary consents, is free of contamination, or that services and facilities are in working order. Interested parties are advised to carry out their own investigations as required. June 2015.
EPC The EPC rating for the unit is E. A full EPC can be provided upon request.
VAT The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC).
PROPOSAL We are instructed to seek offers in excess of £5,450,000 (Five Million, Four Hundred and Fifty Thousand Pounds Sterling), subject to contract and exclusive of VAT for the Absolute Ownership. A purchase at this level would reflect an attractive Net Initial Yield of 5.49% after allowing for purchaser’s costs based on LBTT.
94 Nicolson Street / Edinburgh / EH8 9EW
John BuchananTelephone: 07860 248219
Email: [email protected]
Calum CoweTelephone: 0131 226 8759
Email: [email protected]
Steven NewlandsTelephone: 0131 226 8756
Email: [email protected]