MULTI LET RETAIL WAREHOUSE INVESTMENT OPPORTUNITYCRAIGENTINNY RETAIL PARK, EDINBURGH, EH6 7LD

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EXECUTIVE Summary Opportunity to acquire retail warehousing within the City of Edinburgh, benefitting from unrestricted, non food retail consent. • Let to Halfords, Archers Sleepcentre, Connection Flooring and Sue Ryder

• Fully let and occupied with low average rent of £11.18 per sq ft

• WAULT of approximately 10.2 years to expiry and 7.5 years to break options

• Total income of £278,500 per annum

• Offers in excess of £3.1 million are invited

• Net Initial Yield 8.48%

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CRAIGENTINNY RETAIL PARK, EDINBURGH, EH6 7LD

Location

Edinburgh is the historic and administrative capital of Scotland with a resident population of approximately 500,000. The population of the Greater Edinburgh area is currently 1.2 million and is projected to grow to 1.33 million by the year 2020.

The property occupies a highly prominent position on the south side of Seafield Road, close to its junction with Craigentinny Avenue North approximately 3.5 miles north east of the City Centre. Seafield Road is a major thoroughfare linking northern Edinburgh to the A1 and the City Bypass.

The surrounding area provides a mix of commercial and retail uses with retail warehousing situated at various points

along the length of Seafield Road from Leith in the west to Portobello in the east. B & M are located on the immediately adjacent estate.

The Seafield area is also a recognised location for car sales with marques including BMW, Citroen, Fiat, Abarth, Kia, Renault, Peugeot, Skoda, Mini, Peter Vardy Heritage, together with numerous Motorstores and Car and Van rental companies.

Trade Counter operators are also strongly represented with Screwfix, Toolstation, Benchmarx, Jewson and Grahams all located in the immediate vicinity.

DESCRIPTION

The park, which is fully let, comprises a terrace of three retail warehouse units, one single let retail warehouse fronting Seafield Road and a stand alone drive-thru restaurant which has been sold on a long lease to McDonalds.

The estate benefits from a good level of parking/service yards throughout and sits on a level site of approximately 1.3 acres (0.52 hectares) to include the drive-thru restaurant.

A199 SEAFIELD ROAD EAST

Portobello Road

A1140

A19

9

Craigentinny Rd

Craigentinny Rd

Portobello Road

Restalrig Ave

Sea�eld Way

Crai

gent

inny

Ave

Nantwich Drive

Stapeley Ave

Fillyside Ave

Fillyside Ter

Wake�eld Avenue

Sydney Terrace

Christiemillar Ave

Vandeleur Ave

Bryce Ave

Kekewich Ave

EDINBURGH

Craigmillar

Danderhall

Colinton

Braid Hills

Morningside

Gorgie

Duddingston

Old Craighall

Blackhall

GrantonCramond

South Gyle

HillendStraiton

Loanhead

Gilmerton

Corstorphine

Barnton

Gogar

Hermiston

Portobello

Newcraighall

Arthur’sSeat

Trinity

Leith

NewbattleLasswade

Bonnyrigg

Wester Hailes

Dalmeny

EDINBURGH AIRPORT

Currie

Balerno

Liberton

Newington

Fairmilehead

Dalkeith

A702

A701

A702

A703

A7

A7

A720

A71

A90A8

A8

M8

A71

A70

A90

A1

A199

A68A720 CITY BYPASS

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Description

Floor Area Tenant Lease Start

Next Review Date

Next Break Lease Expiry

Term Certain Income

Term to Expiry

Rent (Per

Annum)

Rental Rate

(sq.ft.)D&B

RatingEPC

Rating Comments

Unit 1 10,111 Halfords Ltd 01/04/1999 28/05/2019 01/04/2024 31/03/2029 5.46 10.46 £100,000 £9.89 5A1 D

2019 rent review capped at 115%. Tenant has completed full refurbishment. Tenant Pays Monthly. Management fee contribution capped at 10%.

Container 0 Halfords Ltd 28/08/2015 28/08/2019 31/03/2029 0.86 10.46 £1,500 5A1 Licence can be terminated by either party on 3 months notice.

Unit 2a 7,511 Archers Sleepcentre 01/11/2006 01/11/2021 31/10/2031 13.05 13.05 £90,000 £11.98 02 D

Rent increases to £97,500 per annum from 1 November 2021 (with two years half rent), with an open market rent review 1 November 2026. Tenant pays monthly. Schedule of Condition.

Unit 2b 3,744 Connection Flooring limited 04/01/2018 04/01/2023 04/01/2023 03/01/2028 4.22 9.22 £45,000 £12.02 1A2 D

3 month rent penalty if tenant exercises break option in 2023 and 6 months rent free incentive if 2023 break not exercised. Trades as Flooring Superstore.

Unit 3 3,421 Sue Ryder 17/02/2014 17/02/2019 16/02/2024 5.34 5.34 £42,000 £12.28 5A1 EService Charge cap of £3,837 per annum subject to annual RPI increases. Schedule of Condition.

Unit 4 McDonalds 08/04/2002 07/04/2127 £0 ESold off on long lease. Unit extends to 2,501 sq ft. Management fee contribution capped at 10%

Total 24,787 £278,500

ACCOMMODATION/TENANCY SCHEDULE

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CRAIGENTINNY RETAIL PARK, EDINBURGH, EH6 7LDTenant Covenant

Archers Sleepcentre (Hillington) Ltd

Archers Sleepcentre, founded in 2001, is the largest independent bed retailer in Scotland with 12 bed superstores located across the country.

The tenant has a Dun and Bradstreet rating of 02, reflecting a lower than average risk. A copy of the Dun and Bradstreet report is available within the Data Room

Sue Ryder

Sue Ryder is a registered charity founded in 1953 providing medical, practical and emotional support in the community and in people’s homes. They also run 449 shops, 7 hospices and 4 neurological care centres with the help of 11,000 volunteers.

The tenant has a Dun and Bradstreet rating of 5A1, reflecting a minimum risk of business failure, with reported turnover to March 2018 of approximately £101 million, a loss of £0.525 million and a net worth of £55.5 million. A copy of the Dun and Bradstreet report is available within the Data Room

Connection Flooring Limited

Formed in 2012, Connection Flooring Limited, trading as Flooring Superstore, stocks over 5,000 choices of carpet, vinyl, laminate, solid and engineered wood and artificial grass. The whole of the UK is supplied via their website and a network of 6 stock warehouses. There are also 9 Floor Superstores throughout the UK.

The tenant has a Dun and Bradstreet rating of 1A2, reflecting a lower than average risk, with reported turnover to March 2017 of approximately £18.6 million, a pre tax profit of £0.4 million and a net worth of £0.9 million. A copy of the Dun and Bradstreet report is available within the Data Room

LAND REGISTEROF SCOTLAND

Officerʼs ID / Date

NORDNANCE SURVEY

NATIONAL GRID REFERENCESurvey Scale

C

MID245870m

1/1250 NT2875NE

5223

TITLE NUMBER

7/8/2007

CROWN COPYRIGHT © - Produced from REGISTERS DIRECT on at with the authority of Ordnance Survey pursuant to section 47 of the Copyright, Designs and Patents Act 1988. Unless that act provides a relevant exception to copyright, the copy must not be copied without the prior permission of the copyright owner. This copy has no evidential status. OS Licence No.

30/06/2014 11:11

100041182.

Halfords Ltd

Halfords is the UK’s leading retailer of motoring, cycling and leisure products and services. Through Halfords Autocentres, it is also one of the UK’s leading independent operators in vehicle servicing, maintenance and repairs.

The tenant has a Dun and Bradstreet rating of 5A1, reflecting a minimum risk of business failure, with reported turnover to March 2018 of approximately £930 million, a pre tax profit of £74.5 million and a net worth of £765.9 million. A copy of the Dun and Bradstreet report is available within the Data Room

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SERVICE CHARGE

There is a service charge at the estate to include Unit 4 (McDonalds). The total service charge budget for the current year is £23,400 equating to approximately £0.85 per sq ft. There is currently an annual shortfall of approximately £1,000.

TENURE

Heritable Interest (Scottish Equivalent of English Freehold).

The Agents for themselves and for 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 intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representation or warranty whatever in relation to this property. November 2018.

PRICE

We are instructed to seek offers in excess of £3,100,000 for our client’s Heritable Interest subject to contract and exclusive of VAT.

A purchase at this level would show a net initial yield of 8.48% after allowing for purchaser’s costs based on LBTT.

Jamie Thain T 0131 240 6994 / 07798 647 620 E jamie.thain@galbraithgroup.com

Will Sandwell T 0131 240 6997 / 07801 266 373 E will.sandwell@galbraithgroup.com

Mark Woodcraft T 0131 220 0662 / 07733 124 461 E mwoodcraft@mwmproperty.co.uk

Will Marchington T 0131 220 0661 / 07979 700 433 E wmarchington@mwmproperty.co.uk

VAT

The property has been elected for VAT and therefore VAT will be applicable on the purchase price, however, it is anticipated that the sale will be treated by way of Transfer of a Going Concern (TOGC).

Data-room

A data-room will be made available to seriously interested parties to include service charge information, leases, EPCs, title plans and further information.

Contact Details

For further information or to make arrangements to view, please contact the joint selling agents: