PRIME NEIGHBOURHOOD RETAIL PARADE - FOR SALE
Greenlaw Village is the retail heart of a new development within the affluent Newton Mearns suburb of Glasgow. The site was developed by Gleniffer Estates who secured Waitrose as the anchor tenant to the scheme and has attracted a number of national tenants. The final phase of the development was completed in Spring 2014.
The development benefits from staff car parking and service access to the rear, and there are 179 shared customer car parking spaces to the front. The main car park is common to, and bordered by, the subject retail parade, Zyca Indian Bar & Grill, Home Bargains and Pets at Home, which are not included as part of this sale.
Location
Greenlaw Village is a retail development in the heart of Newton Mearns, one of Glasgow’s most affluent suburbs, lying some 10 km (7 miles) southwest of Glasgow city centre. Greenlaw Village has seen a number of recent developments including a Premier Inn, Beefeater restaurant, a retirement living complex, the Isobel Mair School and over 500 new homes.
Greenlaw Village has attracted a number of national retailers such as Tesco, Waitrose, Home Bargains and Pets at Home because of the affluence of the immediate catchment area and good transport links.
Greenlaw Village is located adjacent to Junction 4 of the M77 motorway. The subject property is located at the entrance to Greenlaw Village on the western side of the development. Nearby retailers and services include Waitrose, Premier Inn, Pets at Home, Home Bargains, a medical centre and the Isobel Mair School.
Accommodation
The property comprises 1,344.85 sq m (14,476 sq ft) of modern, purpose-built retail units. There are nine retail units in total, ranging from 92.9 sq m – 373.65 sq m (1,000 sq ft – 4,022 sq ft). A number of the units are capable of, and have been, sub-divided to provide more flexible space.
The property occupies a site extending to 2.46 acres (0.99 hectares).
Terms
Tenure
Scottish Freehold.
Service Charge
The current service charge equates to approximately £1.56 per sq ft. Further information is available on request.
Tenancy
The property is fully let to 9 tenants on 10 separate tenancies. The passing rent is £352,834 per annum and the property has a weighted average unexpired term of 9.37 years to expiries and 8.20 years to breaks.
For a more detailed view of Tenancy Schedule & Tenant Covenants please see attached brochure.
Market Commentary
The subject parade was predominantly pre-let at a headline rent of £278.35 per sq m (£25.86 psf) and the most recent deal agreed to Barnardo’s reflects £262.42 per sq m (£24.38 per sq ft). The proposed Domino’s letting reflects £270.45 per sq m (£25.13 per sq ft).
All but one of the tenants were given less than nine months rent free on 10 year plus leases which is extremely reasonable in the current market and highlights the flexibility and demand for the units in the subject development.
Asset Management
- Four of the leases incorporate RPI linked rent reviews, therefore, there is a strong potential for rental uplift at respective reviews given the current inflation rate.
- Extend Barnardo’s lease.
- Remove break options for In the Oven, Sun First and Vets4Pets.
- Improve WAULT and total rental income by finalising the proposed Domino’s letting.
Planning
Units 1, 2, 5, 6, 8a and 8b benefit from Class 1 Retail consent.
Units 3, 4, 9a and 9b benefit from Class 2 (Office) use and
Unit 7 benefits from Class 3 (Restaurant) use.
EPC
Full Energy Performance Certificates are available on request.
Please note that EPC regulations and bandings differ between Scotland and England. The Energy Act 2011, which will prohibit future lettings of property with a banding of “F” and “G” from April 2018, does not apply in Scotland.
For a more detailed view of the EPC ratings for each unit, please see attached brochure.
VAT
The property has been elected for VAT, however, it is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
Proposal
Our clients are seeking offers in excess of £4,751,000 (Four Million Seven Hundred and Fifty One Thousand Pounds) exclusive of VAT, for the freehold interest in the subject property. A purchase at this level reflects a net initial yield of 7%, assuming standard purchaser’s costs of 6.09%.
Specification
Investment Summary
- Modern multi-let retail parade
- Prominent site located within Newton Mearns, one of Glasgow’s most affluent suburbs
- Adjacent to Waitrose supermarket
- Anchored by Tesco Express, with unfettered RPI linked rent reviews
- A further three leases with RPI indexed reviews
- WAULT of 9.37 years to expiry and 8.20 years to breaks
- Total income £352,834 per annum
- Offers in excess of £4,751,000 excl of VAT
- A purchase at this level reflects a net initial yield of 7%, assuming standard purchaser’s costs of 6.09%