• A prime, multi-let retail investment opportunity

• Prime retailing pitch in the heart of Inverness city centre

• Fully income producing

• Over 80% of income secured against national retailers

• New leases to Mountain Warehouse & Isle of Skye Candle Co

• Asset management opportunities

• £1,755,000, subject to contract

• 11.6% Net Initial Yield

The subject property occupies a prime retailing position on the pedestrianised section of the High Street. Surrounding occupiers include WH Smith, Boots, Lush, Burton, Dorothy Perkins, Specsavers, Superdrug, McDonalds and Caffe Nero.

The Eastgate Shopping Centre, which benefits from a footfall of over 8 million people per year, is immediately to the east. The centre comprises in excess of 32,516 sq m (350,000 sq ft) over 50 stores and 13 eateries, as well as two car parks offering 1,350 spaces of covered parking. Anchor tenants include Marks & Spencer, Boots, Debenhams, Next, H&M and Topshop. Other occupiers include White Stuff, Lakeland, Superdry, Argos, O2 and New Look.

The subject property is comprised of three adjoining units which are each self-contained.

Unit 1, 41 High Street (EE) provides sales accommodation on ground floor with ancillary accommodation at first and second floor.

Unit 2, 41 High Street (Mountain Warehouse) provides sales accommodation on ground and first floor, with ancillary accommodation at second floor and attic.

45 High Street (Isle of Skye Candle) provides sales accommodation on ground floor with ancillary accommodation at basement, first and second floor.

Each unit has been fitted out by the tenants in their respective corporate styles.

The Landlord has recently carried out extensive works to the façade and windows of Unit 2, 41 High Street and 45 High Street.

We understand that Unit 1 & Unit 2, 41 High Street are Category B listed and the property lies within the Inverness Riverside Conservation Area.

The Uniform Business Rate is 46.6 pence per pound for rateable values below £51,000, and 49.2 pence per pound for rateable values of more than £51,000.

The property is let as follows:

Unit 1, 41 High Street is let to EE Limited on a Full Repairing and Insuring lease for a term of 35 years from 24th January 1983, expiring on 1st February 2018. The current passing rent is £125,250 per annum. Based on our analysis the rent equates to £127 Zone A.

Unit 2, 41 High Street is let to Mountain Warehouse Limited for a term of 10 years from 25th May 2017, expiring on 24th May 2027. There is a tenant’s break option on 25th May 2022, subject to six months’ prior written notice. The lease benefits from an upwards only rent review on the 5th anniversary of the term. The lease is subject to a Schedule of Condition.

The current passing rent is £50,000 per annum. Based on our analysis the rent equates to £31 Zone A. The tenant benefits from a 12 month rent free period expiring on 24th May 2018. In order that a purchaser does not suffer an income shortfall the vendor will top up the rent on completion by way of an adjustment to the purchase price.

The tenant has been in occupation since 2014 and was previously occupying the unit under a licence.

45 High Street is let to Isle of Skye Candle Company Limited on a Full Repairing and Insuring lease for a term of 10 years from 18th May 2017, expiring on 17th May 2027. There is a tenant’s break option on 18th May 2022, subject to six months’ prior written notice. The lease benefits from an upwards only rent review on the 5th anniversary of the term.

The current passing rent is £40,000 per annum. Based on our analysis the rent equates to £56 Zone A. The tenant benefits from a 6 month rent free period expiring on 17th November 2017. In order that a purchaser does not suffer an income shortfall the vendor will top up the rent on completion by way of an adjustment to the purchase price.

The tenant has been in occupation since 2014 and was previously occupying the unit under a licence.

Therefore, the total annual income receivable is £215,250 per annum.

EE Limited (Co. No. 02382161), has reported the following figures;

EE, which was acquired by BT Group Plc in January 2016, is the largest and most advanced digital communications company in Britain, delivering mobile and fixed communication services. EE has approximately 553 retail stores, and services more than 31 million connections across its mobile, fixed and wholesale networks. For further information, please visit ee.co.uk.

Mountain Warehouse Limited (Co. No. 03417738) has reported the following figures:

Mountain Warehouse was established in 1997. The principle activity of the company is the retailer of clothing and equipment for outdoor pursuits. The company operates through two channels, namely retail outlets and the internet. During the last financial year turnover grew 28.7%. There were 232 stores at the end of the year (2015: 197). For further information, please visit www.mountainwarehouse.com.

Isle of Skye Candle Company Limited (Co. No. SC385579) has reported the following figures:

Isle of Skye Candle Company was established in April 2006 and now has 5 stores in Edinburgh, Glasgow, Inverness, Skye and St Andrews. In 2012 the company won ‘Best New Scottish Company’ at the Scottish Variety Awards and in 2015 won a further award at Scottish EDGE, a competition aimed at identifying and supporting Scotland’s up-and-coming, innovative, high-growth potential entrepreneurial talent. For further information, please visit www.skyecandles.co.uk.

Our client is seeking offers in the region of £1,755,000 (One Million, Seven Hundred and Fifty Five Thousand Pounds), subject to contract, reflecting a net initial yield of 11.6%, after allowing for standard purchaser’s costs of 5.74%

1. An opportunity to acquire a prime multi-let retail investment;

2. The property occupies a prime retailing position within the pedestrianized section of the town centre;

3. Fully income producing;

4. Over 80% of the income is well secured against national retailers EE and Mountain Warehouse, with the remainder of the income secured against an established and expanding retailer;

5. New lettings to Mountain Warehouse and Isle of Skye Candle Company;

6. The investment provides short term asset management opportunities;

7. 41 High Street is a Category B listed building, ensuring no vacant rates payable;

8. A purchase at the asking price reflects an attractive net initial yield;

9. The investment provides a purchaser with an attractive lot size.