59 sauchiehall street, 108-112 renfield street & 100-106 ... · a78 a82 a83 a81 a84 a9 a91 a8 9...
TRANSCRIPT
59 SAUCHIEHALL STREET, 108-112 RENFIELD STREET & 100-106 RENFIELD STREET
GLASGOW G2 3DA
Burger King and KFC – Prime Long-Let Leisure Investment Opportunity with 16+ years to Expiry
Executive Summary
• Glasgowranks1intheUKintermsofthevolumeoftotalretailspendavailablewithinthePrimaryRetailMarketArea.(Promis,2018).
• LocatedonSauchiehallStreetandRenfieldStreetwithinGlasgow’sprimeretaildistrict‘TheGoldenZ’andwithincloseproximitytoCineworldGlasgow(top10tradingcinemaintheUK)andBuchananGalleries.
• WAULTof16.83yearstoexpiry(9.60yearstobreak).
• Re-basedrentsprovidesfuturerentalgrowthopportunitieswithinthemicrolocation.
• BurgerKingoccupiesaprimereturnfrontageunit,withaleaseexpiryin2033.In2015,thevacantupperfloorsabovetheBurgerKingdemiseweregrantedplanningconsentfor9residentialunits.
• KFChavebeeninoccupationsince2003,andhaverecentlytakenanewleasefrom2018until2038andspentapproximately£750,000refurbishingtheirstore.
• Valueaddopportunitieswithpotentialupperfloorresidentialdevelopment,whichisavailableaspartofalargerpackageorbyseparatenegotiation.
• HeritableInterest(ScottishequivalentofEnglishFreehold).
• Totalpassingrentof£305,000perannum.
• We have been instructed to seek offers for the retail element in excess of £5,226,000, subject to contract and exclusive of VAT reflecting a NIY 5.50% assuming standard purchasers costs of 6.10%.
BUCHANAN STREET
BUCHANAN GALLERIES
BUCHANAN BUS STATION
BHS REDEVELOPMENT SITE
PAVILION THEATRE
GLASGOW QUEEN ST
GLASGOW CALEDONIANUNIVERSITY
GLASGOW CENTRAL
RENFIELD STREET
SAUCHIEHALL STREET
ROYAL CONCERT HALL
Location
GlasgowisthelargestcityinScotland,thirdlargestintheUKandisfastbecomingoneofEurope’smostvibrantandcosmopolitancities.ItislocatedintheWestofScotlandandliesapproximately400milesnorthofLondonand40milestothewestofEdinburgh.Thecityhasapopulationofalmost600,000.Theentireregionsurroundingtheconurbationhasapproximately2.3millionpeoplewithinonehour’sdrivewhichismorethan40%ofScotland’sentirepopulation.
ThetotalpopulationwithintheGlasgowprimarycatchmentareais1,867,000andthecityhasanestimatedshoppingpopulation(thosewhoregardthecityastheirmainshoppingdestination)of865,000.Glasgowranks1intheUKintermsofthevolumeoftotalretailspendavailablewithinthePrimaryRetailMarketArea.(Promis,2018).
Situation
ThepropertiesarelettoBurgerKingandKFC,locatedwithinthepedestrianisedprimeretailingpitchonthecornerofSauchiehallStreetandRenfieldStreet.
SauchiehallStreetformspartofGlasgow’sprimeretailingdistrictknownasthe‘GoldenZ.’ThestreethasfirmlyestablisheditselfasoneoftheprimeretaildestinationsoverthepastdecadeswithkeysurroundingoccupiersincludingMarks&Spencer,Primark,Starbucks,DocMartins,Sainsbury’s,PretandCineworld.Inaddition,thereistheBuchananGalleriesShoppingCentretotheeasternendfurtherincreasingfootfall.WiththestreetofferinganaturalthoroughfarefromtheCentralBusinessDistricttoBuchananBusStationandGalleries,itisoneofthebusieststreetsinthecitywithannualfootfallfiguresover16millionpeople.
RenfieldStreetconnectsdirectlytotheprimeretailingsectionofSauchiehallStreet.ItisideallylocatedclosetoCineworldonRenfrewStreet,Scotland’sbusiestcinema,ensuringitsprimelocationforrestaurantfast-foodoperators.
Falkirk
Livingston
Dunfermline
GLASGOW
Edinburgh
GLASGOW
Glasgow
Edinburgh
F I R T HO F
F O R T HRiver Clyde Edinburgh
Stirling
Motherwell
Hamilton
Kilmarnock
EastKilbride
Paisley
Cumbernauld
Armadale
Airdrie
PortGlasgow
Bellshill
Kilsyth
Helensburgh
Garelochhead
Dunoon
Skelmorlie
Greenock
Clydebank
WestKilbride
Millport
Rothesay
M80
M74
M80
M90
M876
M77
M8
A80
A73
A71
A7
A68
A72
A77
A71
A8
A82
A78
A78
A82
A83
A81
A84 A9
A91
A891
A977
A70
6
A70
2 A703
A199
A909
A720
A811
A811
A80
9
A726
A725
A737
M8
M9
M9
T R O S S A C H SN AT I O N A L PA R K
C LY D E M U I R S H I E LR E G I O N A L PA R K
A8
A8
M8
M8
M74
A814
BR
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A814 BROOMIELAW
CLYDE ST
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ST. VINCENT STREET
COWCADDENS RD
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PB
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BATH ST
RENFREW ST
SAUCHIEHALL ST
ST. VINCENT ST
ARGYLE STREET
TRONGATE
WEST GEORGE ST
EGLI
NTO
N S
T
MORRISON STREET
BALATER STREET
EDINBURGH
GLASGOW AIRPORT
A74(M)
CHARING CROSS (GLASGOW)
GLASGOW CENTRAL
GLASGOW QUEEN ST
ARGYLE STREET
St. Enoch Centre
W
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T N
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ST
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NF
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D S
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BU
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BuchananGalleries
Cineworld
PO
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DU
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AS
RD
16
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21
Surrounding Redevelopment
Locateddirectlyoppositethesubject,plansfora£75millionredevelopmentoftheformerBHShaverecentlybeenannounced.Proposalshavebeensubmittedtothelocalauthorityfora12-storeyschemewhichwillinclude130,000sqftofGradeAofficespacewith18,000sqftofgroundfloorretailaccommodationfrontingontoSauchiehallStreet.Thisdevelopmentwilldrasticallyenhancethelookandfeelofthemicrolocationuponcompletion.
StallanBrandarchitectsCGI
BURGER KING & KFC
Description
Thesubjectpropertycomprisestwoadjoiningleisure/retailunitsoverbasement,groundandfirstfloorswiththeupperfloorsvacantandseparatelyaccessed.TheleisureelementsarelettoBurgerKing,frontingontoSauchiehallStreet,andKFCwhichfrontsontoRenfieldStreet.
Burger King, 59 Sauchiehall Street & 108-112 Renfield Street
ThepropertycomprisesacornerblockonSauchiehallStreetandRenfieldStreet.BurgerKinghavealeaseoverthebasement,groundandfirstfloors.TheBurgerKingelementextendstoapproximately5,077sqftNIAwithanITZAof1,775sqft.KFC, 100-106 Renfield Street
KFChaverecentlyundergonea£750,000refurbishmentinlinewiththeircorporatebrandingandextendedthecustomerareaontothefirstfloor.Theirleaseholdinterestextendsoverbasement,groundandfirstfloorsprovidingapproximately9,074sqftNIAwithanITZAof2,563sqftofaccommodation.
Residential Development Opportunity
TheupperfloorsaboveBurgerKing(2nd,3rd&4th)andKFC(2nd&3rd)arecurrentlyinshellconditionanddonotcomprisepartofeitheroccupier’sdemise.SeparateaccesstotheelementaboveBurgerKingisprovidedthroughanentrancefrontingontoRenfieldStreetwhilstaccesstothedemiseaboveKFCisviaSauchiehallLane.TheseupperpartsextendtoaGIAof13,997sqft.
In2015,thevacantupperfloorsabovetheBurgerKingdemiseweregrantedplanningconsentfor9residentialunits.(REF:15/01982/DC).AnadditionalplanningapplicationhasbeensubmittedtoGlasgowCityCouncilfortheuseofvacantupperfloorsfor12residentialflats.Thecouncilhavestatedthattheyaremindedtograntconsent.(REF:18/00186/FUL.)
ADeedofConditionhasbeengrantedtoallowahorizontalsplitofthecommercialandresidentialelement.Thisresidentialelementisavailableaspartofawiderpackageincludingthegroundfloorleisureelementorbywayofseparatenegotiation.Furtherinformationcanbeprovideduponrequest.
Tenure
HeritableInterest(ScottishequivalentofEnglishFreehold).
Tenancy
Unit
NameTenant
Area
(ITZAsqft)LeaseStart LeaseExpiry NextReview Break
Rent
(pa)
Rent
(ITZApsf)Comments/AssetManagement
59Sauchiehall
Street
CaspianFoodRetailersLtd
t/aBurgerKing1,775 02/04/2013 01/04/2033 01/04/2023 02/04/2028 £175,000 £98.59
GuaranteedbyCaspianUKGroupLtd,currentlybeingassignedtoRoyaleHoldcoLtd.TotalNIA5,077sq.ft.
100-106Renfield
Street
AlderforceSCLtd
t/aKFC
Ground
&First2,563 08/01/2018 07/01/2038 07/01/2023 08/01/2028 £130,000 £50.72
Basementissubjecttoascheduleofconditionandisexcludedforrentreviewpurposes.Totalarea9,074sqft.
Second,third&
fourthfloorsVacant
2nd
GIA3rd
4th
5,987
5,977
2,003
Anapplicationtoconverttheupperfloorsinto12residentialunitshasbeensubmittedtoGlasgowCityCouncil.
Total £305,000WAULTof16.83yearstoexpiry(9.60yearstobreak)
Covenant Analysis
TenantTurnover
2017
Profitbefore
Taxation2017
NetWorth
2017FameScore Comment
CaspianFoodRetailersLtd
t/aBurgerKing£317,800,000 £1,917,000 £2,087,000 Secure(85)
GuaranteedbyCaspianUKGroupLtd.
AlderforceSCLtdt/aKFC £14,864,590 £1,320,588 £596,900 Secure(92)
Guaranteedby
MarsdensCaterersof
SheffieldLtd.
Caspian Food Retailers Ltd
CaspianFoodRetailersLtdareoneoftheUK’slargestBurgerKingfranchiseeswithover74restaurants.TheleaseisguaranteedbyCaspianUKGroup.CaspianUKGroupwerepurchasedbyinternationalprivateequitygroupBridgepointinNovember2017.OthernotableleisureoperatorsundertheBridgepointumbrellaincludeZizziandAskItalian.
Alderforce SC Ltd
AlderforceSCLtdisnotonlyalargeKFCfranchisee,thecompanyisalsooneofthelargestCostaCoffeeandTacoBellfranchiseesintheUK.
57%
43%
BurgerKing
KFC
Income profile by tenant
MISREPRESENTATIONACT:KnightFrankLLPgivenoticetoanyonewhomayreadtheseparticularsasfollows:1.Particulars:Theseparticularsarenotanofferorcontract,norpartofone.YoushouldnotrelyonstatementsbyKnightFrankLLPintheparticularsorbywordofmouthorinwriting(“information”)asbeingfactuallyaccurateabouttheproperty,itsconditionoritsvalue.NeitherKnightFrankLLPnoranyjointagenthasanyauthoritytomakeanyrepresentationsabouttheproperty,andaccordinglyanyinformationgivenisentirelywithoutresponsibilityonthepartoftheagents,seller(s)orlessor(s).2.Photosetc:Thephotographsshowonlycertainpartsofthepropertyastheyappearedatthetimetheyweretaken.Areas,measurementsanddistancesgivenareapproximateonly.3.Regulationsetc:Anyreferencetoalterationsto,oruseof,anypartofthepropertydoesnotmeanthatanynecessaryplanning,buildingregulationsorotherconsenthasbeenobtained.Abuyerorlesseemustfindoutbyinspectionorinotherwaysthatthesemattershavebeenproperlydealtwithandthatallinformationiscorrect.4.VAT:TheVATpositionrelatingtothepropertymaychangewithoutnotice.KnightFrankLLPisalimitedliabilitypartnershipregisteredinEnglandwithregisterednumberOC305934.Ourregisteredofficeis55BakerStreet,LondonW1U8AN,whereyoumaylookatalistofmembers’names.September2018.
Proposal
Wehavebeeninstructedtoseekoffersfortheretail/leisure elementinexcessof£5,226,000,subjecttocontractandexclusiveofVATreflectingaNIYof5.50%assumingstandardpurchaserscostsof6.10%.
Inaddition,ourclientisofferingthesale of the upper floors by way of separate negotiation.Anapplicationtoconverttheupperfloorsinto12residentialunitshasbeensubmittedtoGlasgowCityCouncil(18/00186/FUL).Furtherinformationcanbeaccessedviathedataroom.
Contact
Forfurtherinformationortoarrangeaninspectionpleasecontact:
Andrew McGregor
E:[email protected]:+442078611531M:+447970971538
Douglas Binnie
E:[email protected]:+441415660885M:+447775561334
PlanningREF:18/00186/FUL-PendingUseofvacantupperfloorsas12residentialflats.
REF:15/01982/DC-GrantedUseofvacantofficesas9residentialapartments.
12/02228/DC-GrantedUseofrestaurantasrestaurantandancillarytakeaway.
02/01528/DC-GrantedChangeofusefromClass1ShopstoClass3Restaurantsandcafés.
EPCBurger KingEPCRatingF(89)ComparativeEnglishEPCRatingD(81)
KFCEPCRatingE(77)ComparativeEnglishEPCRatingC(65)
VATThepropertyhasbeenelectedforVAT.Itisanticipatedthatthesalewillbetreatedasatransferofagoingconcern(TOGC).