Riverside Retail Park, Leven

Riverside Retail Park, Leven
Retail Park Investment Opportunity
Riverside Retail Park, Leven
Investment Summary
Leven is an attractive coastal town located 14 miles from St
Andrews and 37 miles from Edinburgh.
The town forms the main retailing provision for the Levenmouth
conurbation which has a population of over 38,000 people, with
significant new housing planned.
Net income of £521,987 per annum with a WAULT of approximately
9.5 years to the break option.
The park has attracted a strong tenant line up of B&Q, Argos and
B&M Bargains.
Rents on the park are affordable with B&Q having 5 yearly RPI
rent reviews.
Lying adjacent to the town centre, Riverside Retail Park is the
only retail park serving the area and is opposite a Sainsbury’s
store (circa 42,500 sq ft) and Home Bargains.
Opportunity to add value through adding a drive-thru, subject
to planning.
Offers of £7,130,000 (Seven Million, One Hundred and Thirty
Thousand Pounds Sterling) subject to contract and exclusive of
VAT are sought for the Absolute Ownership (Scottish equivalent
of English Freehold) in the property.
This represents an attractive net initial yield of 6.90%, after
allowing for purchaser’s costs of 6.16% based on Scotland’s
Land and Buildings Transaction Tax (LBTT).
Location
Demographics
Located in East Fife, Leven is 14 miles from St Andrews
and 37 miles from Edinburgh. Leven is the dominant
town providing the principal retail provision for the
Levenmouoth area, which encapsulates the towns of
Leven, Methil and Buckhaven.
The town of Leven has a population of 8,850 people,
while the Levenmouth area has a total population of
38,173 people. Levenmouth has been categorised for
significant expansion, with 1,650 new homes allocated for
the area in the Strategic Development Plan for Edinburgh
and South East Fife.
A97
5
41
A9
The Fife area is a popular location for commuters to
Edinburgh. From Leven the A915/A92 provides access
to the national motorway network and the M90, which
leads directly to Edinburgh. There are also proposals to
reintroduce the Levenmouth rail link, which Fife Council
are supporting, and this would further enhance the
appeal of the area. At present the nearest train station is
in Kirkcaldy.
A920
A938
A9
7
A9
39
A887
A90
A9
44
A96
A97
A9
9
A93
A82
Aberdeen
A9
80
A93
A93
A86
A9
A889
3
A9
A93
7
A92
The main employers within the conurbation are Diageo,
Crecently
O T invested
L A £86
N million
D
whoS
have
in expanding their
bottling facility, and Energy Park Fife where over 900
people are employed in the renewable energy sector.
A9
A90
A957
24
A9
A90
4
A93
A9
A932
A928
6
A92
A82
33
A9
A94
7
A82
A822
A9
3
A94
A90
A85
A923
A92
Dundee
A85
Perth
A85
A9
A92
M90
A9
A84
11
A9
A873
A81
A92
A907
Kirkcaldy
Dunfermline
M80
A985
A19
8
9
A80
A815
Falkirk
Clydebank
M80
Glasgow
EDINBURGH
A90
Cumbernauld
A1
A1
Livingstone
Airdrie
Coatbridge
Paisley
A78
M9
A1
107
A720
M8
A1
A737
A71
A71
A78
A7
A697
A72
Kilmarnock
A6
08
9
A77
A70
M74
A68
01
A7
Ayr
A699
A698
A70
8
A70
A76
A70
2
A719
A6
112
A6
10
5
A703
A721
1
A7
Irvine
Berwick-upon-Tweed
A702
A72
1
A7
01
East
Kilbride
Motherwell
Wishaw
2
A7
M77
Hamilton
A7
0
A7
36
A725
A68
M74
A
A6
98
A814
15
A8
A91
M9
M8
A917
Glenrothes
Stirling
A811
A82
A8
Leven
A823
A9
16
A821
St Andrews
A91
A915
A82
A1
Riverside Retail Park, Leven
Situation
The subject property is situated on Riverside Road
(B933) between the junctions of Aitken Street and
Hawkslaw Road, less than half a mile south west of
Leven town centre. Sainsbury’s and Home Bargains
are situated adjacent to the retail park.
A915 KI
RKCALD
Y / BEDI
NBURGH
RIVERSIDE
RETAIL PARK
S
RY
BU
INS
SA
S
PF
Town Centre Occupiers
Description
Tenancy
The park was developed in 2004 and comprises a terrace
of 3 retail units extending to 50,539 sq ft (4,695.20 sq m).
The park benefits from 201 car parking spaces to the
front, with a secure service yard to the rear. Unit 1,
which is let to B&Q, has a garden centre to the north.
The property is multi-let with a current net income of £521,987 per annum.
Within the car park there is a mobile food van
and a clothing recycling pod which provide the
commercialisation income.
Accomodation
The ground floor of the subject property has been
measured on a gross internal area (GIA) basis in
accordance with the RICS Code of Measuring Practice
(6th Edition), and the approximate areas are as follows:
Tenant
sq ft
sq m
24,996
2,322.21
Argos (Unit 2)*
9,073
842.91
B&M (Unit 3/4)
16,470
1,530.08
50,539
4,695.20
B&Q (Unit 1)
Total
*There is a tenant’s mezzanine extending to 2,969 sq ft
(275.82 sq m), which is not rentalised.
Unit
Tenant
Lease Start
Lease Expiry
Rent Review
Break Option
Rent (PA)
1
B & Q Plc
04/02/2005
04/02/2030
30/08/2020 *
-
£240,987
2
Argos Limited
04/02/2005
04/02/2020
04/02/2015
-
£90,000
3/4
B & M Retail Limited
21/10/2011
20/10/2026
21/10/2016
21/10/2021 (T)
£175,000
Commercialisation
M & D Catering
Commercialisation
Terncove Limited
£6,000
£10,000
Total
*The rent is reviewed 5 yearly, to RPI with a cap and collar of 3% and 0%, compounded annually.
£521,987
Riverside Retail Park, Leven
Covenant
B&Q
Argos
B&M Retail
B&Q PLC (Company Number: 00973387) has an
Experian score of 100 which provides a Very Low Risk.
ARGOS LIMITED (Company Number: 01081551) has an
Experian score of 100 which provides a Very Low Risk.
Part of the Kingfisher PLC group, B&Q are the UK’s
leading DIY and garden centre retailer with 360 stores
and over 20,000 employees.
Argos is a British catalogue retailer operating in the UK
and Ireland. With 737 stores and 340 million website
visits a year, it is one of the largest high street retailers in
the United Kingdom.
B&M RETAIL LIMITED (Company Number: 01357507)
has an Experian score of 92 which provides a Very
Low Risk.
28th January
2012 (000s)
2nd February
2013 (000s)
1st February
2014 (000s)
£3,710,400
£3,637,900
£3,589,500
Pre-Tax Profit
£203,300
-£44,100
£138,600
Total Net Worth
4,368,500
£4,305,500
£4,385,900
Year Ending
Turnover
Year Ending
Turnover
Pre-Tax Profit
Total Net Worth
3rd March
2012 (000s)
2nd March
2013 (000s)
1st March
2014 (000s)
£3,749,910
£3,752,634
£3,872,446
£17,035
£84,662
£43,992
£1,170,118
£1,249,775
£1,172,054
B&M was formed in 1978 and is now one of the leading
variety retailers in the United Kingdom, employing over
20,000 staff across 450 stores. They are also listed on
the London Stock Exchange.
Year Ending
Turnover
Pre-Tax Profit
Total Net Worth
31st Dec 2011
(000s)
31st Dec 2012
(000s)
31st March
2014 (000s)
£712,572
£935,229
£1,509,132
£51,702
£88,323
£123,398
£105,539
£171,867
£281,228
Tenure
Energy Performance Certificate
Development Potential
Absolute Ownership (Scottish equivalent of English
Freehold).
The energy perfromance rating for each unit is set
out below:
There is potential to add value through developing a
restaurant pod on the site, subject to planning. Indicative
plans are available on request.
Unit
D
60
2
D
60
3/4
F
12
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AC
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TE
6
12
e
ng
ha
xc
ER
RK
PA
1
3
2
4
7
5
6
8
Tank
Riverside Retail Park
1
2
5
6
8
4
7
ne
Ja
tt a
1
VE
RI
2
AD
RO
13 to 20
E
ID
RS
RIVER
SIDE
3/
El S
4
T
AI
0m
Filling
Station
25m
N
KE
ET
RE
ST
Gas
Distribution
Sta
50m
75m
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).
92
ESS
El Sub Sta
VAT
CO2 Emissions
1
E
ne
ho
lep
Te
The property benefits from Open Class 1 (Non Food)
planning consent. Full planning permission was granted
in December 2003 for the erection of Non-Food retail
units including a garden centre, mezzanine office, service
yard, car parking and associated landscaping.
EPC Rating
10
Planning
ub S
ta
Te
3
ce
rra
Proposal
Offers of £7,130,000 (Seven Million, One Hundred
and Thirty Thousand Pounds Sterling) subject
to contract and exclusive of VAT are sought for
the Absolute Ownership (Scottish equivalent of
English Freehold) in the property. This represents
an attractive net initial yield of 6.90%, after allowing
for purchaser’s costs of 6.16% based on Scotland’s
Land and Buildings Transaction Tax (LBTT).
For further information please contact:
Sarah Stewart
T: +44 (0)131 226 8736
E: sarah.stewart@cushwake.com
Stephen Bibby
T: +44 (0)131 226 8738
E: stephen.bibby@cushwake.com
Natasha Ross
T: +44 (0) 131 226 8735
E: natasha.ross@cushwake.com
Cushman & Wakefield LLP
The Auction House
63A George Street
Edinburgh EH2 2JG
MISREPRESENTATION ACT
Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: 1/ The particulars are produced in good faith, but are a general guide only and do not constitute any part of
a contract. 2/ No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3/ The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive
of VAT. 4/ Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. 5/ Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or
water contamination. Interested parties are advised to carry out their own investigations if required. September 2015