• 8% net initial yield

• Highly secured to 5A1 covenant - Halfords Limited (SF £675m)

• 9 years unexpired

• Prominent solus retail warehouse

• Town centre location

• Non-food retail (Class 1) consent

• Offers in excess of £1,200,000, subject to contract

Easily accessible from the pedestrianised section of the town centre the property is situated in a highly prominent position fronting a busy roundabout at the junction of Alexandra Road (A96) and Cumming Street. Vehicular access to the unit is via Lossie Wynd North.

The rear entrance to the St Giles Shopping Centre is on the opposite side of Alexandra Road and on the opposite side of Cumming Street is Elgin Town Hall with a modern Aldi supermarket just beyond. Approximately 400 metres further beyond is a large Tesco Extra supermarket. Adjacent to the property in Lossie Wynd North is a furniture store occupied by Anderson & England and The Tile & Fireplace Centre.

The property benefits from its own self-contained site and comprises a solus retail warehouse with dedicated customer parking to the front of the unit accommodating 49 vehicles and a rear service yard providing loading and unloading facilities. The unit is of steel portal frame construction with concrete block and profiled metal external walls beneath a pitched roof.

The property is mainly arranged on ground floor and comprises open plan accommodation used entirely as sales space. There is a small first floor area which is used for storage, repairs, office and staff accommodation. Internally, the tenant has fitted out the property to their typical corporate image.

We estimate the site area to be approximately 0.3 hectares (0.75 acres).

Heritable (Scottish Equivalent of English Freehold). 

Tenancy

The property is entirely let to Halfords Limited on a Full Repairing and Insuring lease. The lease was originally for a term of 15 years from 26th March 2001, expiring on 25th March 2016. 

In 2010 the tenant demonstrated their commitment to the property when they agreed to remove a break option and extend the lease by 10 years to expire on 25th March 2026.

Therefore, the unexpired lease term is 9 years.

The current passing rent is £100,600 per annum which equates to £134.47 per sq m / £12.50 per sq ft based on the rentalized floor area.

The lease benefits from five yearly upwards only rent reviews and at review the first floor area is excluded. The 26th March 2016 rent review has not been actioned and the final rent review is on 26th March 2021. The rent is reviewed on the basis of a letting for a term of 10 years and as if the unit is let in a shell condition for the tenant to fit out.

Halfords Limited (Co. No. 103161) has reported the following figures;

Founded in 1892 Halfords is the United Kingdom’s leading retailer of motoring and cycling products and a leading independent operator in garage servicing and auto repair.

Halfords Limited is part of Halfords Group plc which is fully quoted on the London Stock Exchange with a market capitalisation of £746 million, trading from 462 outlets in the United Kingdom and Republic of Ireland, including 430 superstores, employing circa 8,000 people. For more information visit www.halfordscompany.com.

The property has been registered for VAT, however, it is envisaged the transaction will be treated as a Transfer of a Going Concern (TOGC).

1. Investment opportunity to acquire a solus retail warehouse providing highly secure income;

2. Let to Halfords Limited - Shareholders’ Funds £675m;

3. 9 years unexpired lease term;

4. The property occupies a prominent and accessible town centre location;

5. A purchase at the asking price will provide an investor with an attractive net initial yield for a highly secure investment;