The property comprises two retail units, one at ground floor level, the other at first floor level with storage and staff facilites on the second floor.
Both the head and sub-tenants, Tesco Metro and DW Sports, have fitted the units out in their corporate style. Tesco have recently invested in a new store fit out.
There is a secure service yard and loading bay to the rear of the property with goods lift access to the ground and first floors. The service area also benefits from 10 staff parking spaces.
Location
Dundee is the fourth largest city in Scotland situated on the north bank of the Firth of Tay. The city is located approximately half way between Edinburgh (100km South) and Aberdeen (105km North).
Dundee and the surrounding retail catchment has a population of over 250,000 persons and benefits from two leading life science universities, University of Dundee and University of Abertay. The city is also home to Ninewells Hospital the second largest hospital, in Scotland.
The local economy is driven by growing technology and life sciences sectors and has strong local authority, financial and business services sectors. The tourist economy generates over £55 million which should increase significantly given recent investment in the Dundee Waterfront.
Dundee’s Waterfront runs for 8km along the River Tay and is currently undergoing a £1 billion regeneration programme. The development will include the V & A Museum of Design, a new train station and hotel, all of which is located a short walk from Murraygate.
The subjects are situated on a prime pitch on the west side of Murraygate.
The property is located towards the north end of the Murraygate within close proximity to the Wellgate Shopping Centre and opposite Marks & Spencers.
Accommodation
We have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (6th Edition) and would estimate that the subjects extend to the following gross internal areas:
Ground Floor - 1,603 sq m (17,264 sq ft)
First Floor - 1,595.40 sq m (17,172 sq ft)
Second Floor - 312.25 sq m (3,361 sq ft)
TOTAL - 3,511.49 sq m (37,798 sq ft)
Terms
Tenancy - The subjects are let to Tesco Stores Ltd on a full repairing and insuring lease from 5 December 1984 until 4 December 2019 at £560,000 per annum. Tesco sublet part of the first floor to DW Sports.
Tenure - The property is held on a Scottish freehold basis.
Covenant - Founded in 1919, Tesco is one of the largest grocery and general merchandising retailers in the world. Tesco Stores Limited has a Graydon rating of S, being low risk. In February 2016, the company reported a net worth of £1.589 billion and a turnover of £39.84 billion.
EPC - The property has an energy performance rating of G.
VAT - The property is elected for VAT, therefore, it is anticipated that the sale will be treated as a transfer of a going concern (TOGC).
Legal Costs - Each party will be responsible for their own legal costs incurred in any transaction with the Purchaser being responsible for the payment of Land and Buildings Transaction Tax, Registration Dues and VAT incurred thereon.
Specification
- Prime high street retail investment
- Let to Tesco Stores Ltd on an FRI lease expiring 4th December 2019
- Total area 3,511.49 sq m (37,798 sq ft)
- Passing rent of £560,000 per annum
- Freehold opportunity
- Offers in excess of £3,400,000 excluding VAT
- Net initial yield of 15.54% after allowing for standard purchaser’s costs of 6.01%