Secure City Centre Retail Investment
109 Union Street | Glasgow | G1 3TA
£450,000
offers over
GALLERY
Summary
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Situated within the heart of Glasgow City Centre
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Let to highly secure covenant of Power Leisure Bookmakers Ltd t/a Paddy Power
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Re-based rental of £40,000pa
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Tenant been in occupation for over 10 years
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Offers over £450,000, subject to contract
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Attractive net initial yield of 8.53%
Location
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 625,000 people and a catchment population of over 2.8 million people within a 40 minute drive, making Glasgow the third largest urban centre in the UK.
The city benefits from 2 main train stations; Central Railway Station and Queen Street Railway Station both of which provide regular services to London and link to the wider Scottish Railway Network.
Glasgow is Scotland’s centre of employment and an economic powerhouse, generating £18 billion in gross value each year. There are 1.2 million working age people within a 45 minute commute of the city and 2 million within an hour. The city is home to an impressive list of blue chip companies and major global organisations across numerous sectors including Santander, Morgan Stanley, The Student Loans Company, KPMG, Ministry of Defence, BT, Aggreko, Scottish Power, Scottish & Southern Energy, Barclay’s and JPMorgan Chase & Co.
Situation
The subjects occupy a highly visible location on the west side of Union Street approximately 50 metres from the junction with Gordon Street, within Glasgow City Centre. Glasgow Central Station sits immediately behind the building and is the busiest station in Scotland, with over 38 million people using it annually.
Union Street is one of Glasgow’s busiest streets with an entrance into Central Station and it is the principal bus route leading to the south of Glasgow. The prime retailing within the City in Buchanan Street is 2 minutes’ walk from the subjects and there are a variety of occupiers in the immediate vicinity including Co-Op, Greggs, Subway, Shelter and Yorkshire Building Society.
Description
The property comprises a single retail unit over ground and basement within a substantial sandstone building. The upper floors are used as offices.
The shop has a modern corporate shopfront and internally comprises ground floor sales area with modern shopfit with ancillary storage and staff facilities within the basement.
Accommodation
We have been provided with the following net internal floor areas
| Ground Floor | 90.95 sq m (979 sq ft) |
| Basement | 73.67 sq m (793 sq ft) |
| ITZA | 78.86 sq ft (849 sq ft) |
Tenure
Heritable (Scottish equivalent of English freehold)
Tenancy
The property is let to Power Leisure Bookmakers Limited on a Full Repairing and Insuring lease until 6th September 2024 at a passing rent of £40,000pa, which equates to £47.11/sq ft.
The tenant had a break option effective September 2019 which was not exercised and the rent was reduced from £50,000 to £40,000 effective 6th September 2019.
Covenant
Power Leisure Bookmakers Ltd has reported the following trading figures;
| 31st December 2018 | 31st December 2017 | |
|---|---|---|
| Turnover | £850,321,000 | £807,055,000 |
| Pre-Tax Profit | £ 75,880,000 | £ 85,679,000 |
| Net Assets | £127,289,000 | £ 61,585,000 |
Power Leisure Bookmakers Ltd is a wholly owned subsiduary of Flutter Entertainment plc. Flutter is a global sports betting, gaming and entertainment provider and includes Paddy Power, Betfair, Sportsbet and FanDuel. Paddy Power. has over 350 shops throughout the UK.
VAT
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC)
Proposal
We are instructed to seek offers over £450,000 (Four Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 8.53%, assuming purchasers’ costs of 4.38%
Investment Considerations
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Situated in Glasgow City Centre;
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Rare opportunity to purchase city centre retail unit;
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Situated immediately adjacent to Glasgow Central Station benefiting from significant passing footfall;
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Re-based rent;
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Attractive net initial yield of 8.53%.
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BROCHURE
Contact Us
| Singer Vielle | +44 (0) 207 935 7200 | |
|---|---|---|
| Graham Waddell | graham@singervielle.co.uk | +44 (0) 141 221 4545 |
| Douglas Wilson | douglas@singervielle.co.uk | +44 (0) 141 370 0284 |
| Dale Henry | dale@singervielle.co.uk | +44 (0) 203 701 1356 |
| Neil Singer | neil@singervielle.co.uk | +44 (0) 203 478 9120 |
Vendors Solicitor
| Burness Paull LLP | +44 (0) 141 273 6745 | |
|---|---|---|
| Mark Patterson | mark.patterson@burnesspaull.com | |