• High Street retail investment

• Let to Coral Racing Limited

• Shareholders’ Funds £299 million

• In excess of 5.25 years unexpired lease term

• July 2016 break option not exercised by tenant

• Offers in excess of £400,000, subject to contract

• 9.63% net initial yield

The subjects are situated on the west side of High Street on the pedestrianised section close to the junction with Newmarket Street in the heart of the town centre. The High Street is the principal retail street running north/south through the town. High Street comprises a mix of national retailers and independent operators and nearby occupiers include Santander, Superdrug, Boots, McColl’s and Marks & Spencer.

There are major redevelopment and regeneration proposals for Ayr Town Centre which will further enhance the location of the subjects.

The subjects comprise a mid-terraced traditional building with rear two storey extension arranged over ground and two upper floors. The front elevation is of painted stone and there is a pitched roof to the main building with slate covering. The extension has roughcast finish to walls and flat felt roof.

The unit has a modern corporate fit-out with modern frontage.

Internally the ground floor comprises predominantly open place sales space, with customer toilets to the rear. The upper floors are used for staff training, storage, staffroom etc

Feuhold (Scottish equivalent of English freehold)

The property is let to Coral Racing Limited on a full repairing and insuring lease (subject to a Schedule of Condition) for a term of 10 years from 1st July 2011. There is provision for an upwards only rent review on 1st July 2016. The tenant had an option to terminate the lease on 1st July 2016 and this option was not exercised demonstrating the tenant’s commitment to the unit.

The current passing rent is £40,000 per annum.

Our client is seeking offers in excess of £400,000 (Four Hundred and Twenty Thousand Pounds), subject to contract, reflecting a net initial yield of 9.63%.

Value Added Tax

VAT will be payable on the purchase price and we anticipate the transaction will be treated as a Transfer of a Going Concern (TOGC).

1. High Street retail investment;

2. Let off re-based rent;

3. Recent break option not exercised, demonstrating tenant’s commitment to the property;

4. Highly secure income – Coral Racing Ltd (Pre-Tax Profits £56.7 million);

5. Small lot size suitable for private investor;

6. Attractive net initial yield.

Legal Costs

Each party shall be responsible for their own legal costs incurred in the transaction, with the purchasers responsible for SDLT.