FOR SALE PRIME NEIGHBOURHOOD RETAIL PARADEGREENLAW VILLAGE, NEWTON MEARNSGLASGOW G77 6NP

INVESTMENT SUMMARY

WAITROSE

HOME BARGAINS

PETS AT HOME ZYKA RESTISOBEL MAIR SCHOOL

KILMARNOCK& SOUTH

(25 MINS)

GLASGOW(20 MINS)

PREMIER INNCASTLE BEEFEATER

THE OSPREY PUB / REST

STEWARTON ROAD

STEWARTON ROAD

CROOKFUR ROAD

GREENWOOD GROVERETIREMENT LIVING

M77

•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%

GREENLAW VILLAGE (BUILT)

SCHOOL (BUILT)

RETIREMENT HOME (BUILT) HOUSING (BUILT / ONSITE)

THE OSPREY PUB (BUILT)

HOTEL (BUILT)

Glasgow is the largest city in Scotland, the commercial and industrial capital of the country and the administrative centre for the West of Scotland. The city has an urban population of approximately 1.1 million people and a catchment population of over 2.3 million people within a 40 minute drive, making Glasgow the third largest urban centre in the UK. The estimated shopping population of Glasgow is 842,000, ranking the city first of the PROMIS centres outside of London.

Glasgow is well serviced by train links with Queen Street Station and Central Station linking the city with the rest of the UK. Glasgow International Airport is located 16 km (10 miles) west of the city centre. The tourism sector is also an important growing part of the city's economy. Glasgow is the fourth most visited city in the UK by overseas tourists attracting around 75,000 visitors every year.

Glasgow ranks number one in terms of the volume of comparison retail spend available in the catchment area. Glasgow is widely regarded as Scotland’s premier retail location and the most important retail centre in the UK outside of London. The city boasts approximately 2.99 million sq ft of retail floor space.

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.

LOCATION

GREENLAW VILLAGE

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.

SITUATION

MASTERPLAN

ABERDEEN

DUNDEE

GREENOCK

PERTH A90

A9

A85

M90

A86

A85

A84

A82

A1

A68A7A71

M8

A92

M9

A91

A90

A77

A77

A737

M74 A702

A72

A721

A71

A78

FIRTHOF

CLYDE

FIRTHOF FORTH

M73M8

M77

M80

M9

GLASGOW

EDINBURGH

ZYCA INDIAN BAR & GRILL

HOT TANNING

DENTIST

IN THE OVEN

BARNARDO’S

BARNARDO’S

ROWLANDS

PHARMACY

VETS4PETSDESCRIPTION

SITE

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 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.

The property occupies a site extending to 2.46 acres(0.99 hectares).

The current service charge equates to approximately £1.56 per sq ft. Further information is available on request.

UNIT TENANT AREA (SQ FT)

LEASE START

LEASE EXPIRY

REVIEW DATE

BREAK DATE RENT (PA) RENT

(PSF)UNEXPIRED TERM TO BREAK

UNEXPIRED TERM TO EXPIRY

COMMENTS

1Tesco Stores

Limited4,022 1/4/2010 31/3/2025 1/4/2020 - £90,134 £22.41 8.50 8.50

5 yearly open RPI linked rent reviews. Tenant has option to extend for 10 years from expiry on giving 6 months notice.

2-3L. Rowland and

Company (Retail) Limited

2,532 7/12/2012 6/12/2027 7/12/2017 - £62,500 £24.68 11.18 11.185 yearly RPI linked rent reviews, collared at 1% and capped at 4%.

4Done Brothers (Cash Betting)

Limited994 1/4/2010 31/3/2025 1/4/2020 - £25,275 £25.43 8.50 8.50 -

5 Barnardo's 769 10/3/2015 10/10/2020 - - £18,750 £24.38 4.02 4.02 -

6 Barnardo's 1,002 11/10/2010 10/10/2020 - - £25,000 £24.95 4.02 4.02 -

7In The Oven

Limited *995 17/9/2014 16/9/2024 17/9/2019 17/9/2017 £25,000 £20.10 0.96 7.96

Mutual break option on 6 months notice. Stepped rent £15,000 in year 1, £17,500 in year 2, £20,000 in year 3, £25,000 in year 4 and £25,000 in year 5. Annual RPI increases thereafter, collared at 1% pa and capped at 4% pa. The rent will be topped up to £25,000 until16 September 2017.

8ASun First Limited t/a HOT Tanning

Salons812 10/2/2014 9/2/2029 10/2/2019 10/2/2024 £21,000 £25.86 7.36 12.36

Tenant break on 6 months notice. 5 yearly RPI linked rent reviews, collared at 1% pa and capped at 4% pa.

8B Tekace Limited 648 20/4/2010 19/4/2025 20/4/2015 - £16,425 £25.35 8.55 8.55Dry cleaners. 5 yearly reviews to OMR. 2015 review outstanding.

9A Alan Macleod 1,226 4/4/2011 3/4/2026 4/4/2016 - £31,250 £25.49 9.50 9.50

Dental surgery. Lease assigned by Philip Hamill wef 10/07/2015. Tenant has option to extend for 15 years upon giving 6 months notice prior to lease expiry date. 2016 rent review outstanding.

9BNewton Mearns

Vets4Pets Limited **

1,476 2/11/2012 1/11/2032 2/11/2017 2/11/2027 £37,500 £25.41 11.09 16.09

There are fixed rental uplifts to £40,000 pa after year 10 and £45,000 pa after year 15. There is a mutual break option on 6 months prior notice.

TOTALS 14,476 9.37 8.20 £352,834

UNIT 7

* The vendor is currently negotiating a new letting with Dominos for 20 years with break option at year 10 and right to extend for a further 20 years at £25,000 per annum with OMRR every 5 years capped at 4% and collared at 1%. 3 month rent free from date of entry. It is anticipated the lease will be in place before the end of the year. In the event that the Dominos lease is in place at point of sale the rent will be topped up to cover any of the remaining rent free period.

UNIT 9B

** The tenant has a side letter reducing the rent to £30,000 pa until 5th anniversary, then £35,000 pa until 10th anniversary. The vendor will top up the rent to £37,500 until 10th anniversary of date of entry.

TENURE

SERVICE CHARGE

TENANCY

Scottish Freehold.

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.

TENANCY SCHEDULE

Tesco is a global grocery and general merchandising retailer and is the 4th largest retailer in the world measured by revenues.

Tesco Stores Limited has a Graydon rating of P, being normal risk. The company has a tangible net worth of £21,000,000. The company has reported the following financial performance:

Rowland’s Pharmacy is a chain of more than 500 pharmacies throughout the UK who have been in business for over 200 years.

L Rowland and Company (Retail) Limited has a Graydon rating of SN, being normal risk. The company has a tangible net worth of £87,290,000. The company has reported the following financial performance:

Done Brothers (Cash Betting) Limited trades as Paddy Power. They have 9 different distribution channels for their bookmakers’ business including 212 shops in Ireland and 107 shops in the UK.

Done Brothers (Cash Betting) Limited has a Graydon rating of 1A excellent, being low risk. The company has a tangible net worth of £132,413,000 based on a reported pre-tax profit of £7,489,000 in 2015. The company has reported the following financial performance:

Newton Mearns Vets4Pets Limited has a Graydon rating of 0C fair, being above normal risk. The company has reported the following financial performance:

Barnardo’s has a Graydon rating of 2A excellent, being low risk. The company had a tangible net worth of £18,208,000 in March 2015. The company has reported the following financial performance:

Sun First Limited has a Graydon rating of 5A excellent, being low risk. Established in 1997, they now have 17 shops across the greater Glasgow area. The company has a tangible net worth of £382,000. The company has reported the following financial performance:

In The Oven Limited trades as a restaurant known as Scran 77 and Tekace Limited trades as Newton Mearns Dry Cleaners. Both are local occupiers. Alan Macleod operates an NHS registered dental practice known as Greenlaw Dental Practice.

31/01/2015(£000s)

31/01/2014(£000s)

31/01/2013(£000s)

Turnover £486,859 £485,546 £492,761

Pre-tax profit £16,020 £8,367 £8,526

Net Worth £87,290 £103,528 £99,543

28/02/2015(£000s)

22/02/2014(£000s)

23/02/2013(£000s)

Turnover £42,278,000 £42,547,000 £42,662,000

Pre-tax profit £3,727,000 £1,696,000 £921,000

Net Worth £21,000 £3,169,000 £3,255,000

27/09/2015(£000s)

28/09/2014(£000s)

31/03/2013(£000s)

Turnover £288,012 £417,111 £241,918

Pre-tax profit £7,489 £13,967 £26,811

Net Worth £132,413 £125,185 £112,153

26/03/2015(£000s)

27/03/2014(£000s)

-

Turnover £115 £86 -

Pre-tax profit £199 £157 -

Net Worth £403 £205 -

31/03/2015(£000s)

31/03/2014(£000s)

31/03/2013(£000s)

Pre-tax profit £3,131 £7,353 £5,254

Net Worth £18,208 £21,340 £21,417

31/12/2015(£000s)

31/12/2014(£000s)

31/12/2013(£000s)

Net Worth £382 £381 £326

TESCO STORES LIMITED DONE BROTHERS (CASH BETTING) LIMITED

NEWTON MEARNS VETS4PETS LIMITED

BARNARDO’S

SUN FIRST LIMITED

LOCAL OCCUPIERS

L ROWLAND & COMPANY (RETAIL) LIMITED

TENANT COVENANTS

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.

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.

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 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.

• 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.

MARKET COMMENTARY EPC

ASSET MANAGEMENT

PLANNING

UNIT 1 RATING: F+

UNIT 2 RATING: B

UNIT 3 RATING: B

UNIT 4 RATING: E

UNIT 5 RATING: E

UNIT 6 RATING: F+

UNIT 7 RATING: B

UNIT 8A RATING: F

UNIT 8B RATING: C

UNIT 9A RATING: B

UNIT 9B RATING: B

Lambert Smith Hampton for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of an offer or contract; (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Lambert Smith Hampton has any authority to make or give any representation or warranty whatever in relation to this property. Date of Preparation of Details: October 2016.

Andrew Shiells 0131 226 0329ashiells@lsh.co.uk

Ewen White 0141 226 6772ewhite@lsh.co.uk

Nick Lloyd020 7198 2221nlloyd@lsh.co.uk

PROPOSAL

FURTHER INFORMATIONVAT

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%.

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).