• Let to Iceland Foods Limited – Shareholders’ Funds £795 million

• FRI lease recently extended until June 2026

• Tenant been in occupation since 1995

• Rent re-based to £80,000pa with fixed uplift to £86,000 in September 2021

• Offers in excess of £850,000, subject to contract

• Attractive net initial yield of 8.95%

• Guaranteed reversionary yield in 2021 of 9.62%

The subjects occupy a prominent location on the west side of Main Street, which is the principal street running through the town centre. Retailing is located on both sides of the street and the Rutherglen Exchange Shopping Centre is located approximately 2 minutes’ walk from the subjects. There is also a high volume of private and local authority housing within the immediate vicinity and nearby occupiers include Royal Bank of Scotland, Greggs, Bank of Scotland and various multiple retailers in the Centre including Home Bargains, Peacocks and Superdrug.

The interest for sale comprises the ground floor of a large end-terraced unit built over two floors, with full site coverage. The building is of concrete framed construction with flat roof and the unit is serviced from the rear via Greenhill Court.

Internally the premises are a regular rectangular shape comprising open plan retail areas with rear storage and ancillary staff accommodation.

The upper floor, which does not form part of the sale, is currently trading as a licensed snooker hall/bar and is accessed via a separate entrance on Main Street.

Heritable (Scottish equivalent of English Freehold).

The tenant, Iceland Foods Limited, originally took an assignation of the existing lease in July 1995. They have subsequently agreed various lease extensions, with the most recent agreement extending the existing lease from December 2020 until 23rd June 2026 with no breaks. As part of the extension agreement the rent has been agreed at £80,000 per annum (£9.73/sq ft) with a fixed uplift at 29th September 2021 to £86,000 per annum.

The lease is on Full Repairing and Insuring terms.

The property has been elected for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in excess of £850,000 (Eight Hundred and Fifty Thousand Pounds), subject to contract, which reflects a net initial yield of 8.95%, rising to a guaranteed 9.62% in September 2021, after allowing for standard purchasers costs of 5.15%.