BEACH BOULEVARDRETAIL PARK ABERDEEN AB24 5EF

FOR SALE PRIME RETAIL PARK INVESTMENT

Offers over £48,160,000. Net Initial Yield 8%

AVAILABLE

• Prime Open Class 1 Consent Retail Warehouse Park in Aberdeen• Total rent roll is £4,114,174 per annum (includes a rent, rates and

service charge guarantee over Unit 8)• Dominant Park extending to approximately 224,277 sq ft• Currently 95.5% let by floor area• Anchored by an 85,178 sq ft Asda Supermarket• Supermarket income is 40% of total rent, with 14 years unexpired• Strong tenant line up including Asda, Aldi, Iceland, Home Bargains,

Pets at Home and Dunelm amongst others• WAULT of 10.23 years to expiry and 10.15 years to break

• Sits adjacent to Queens Links Leisure Park creating a critical mass of416,206 sq ft of retail and leisure space

• Strong tenant line up with larger unit retail rents pegged at sensiblelevels between £16.50 and £22.40 per sq ft

• Potential to add value by undertaking various asset managementinitiatives including upsizing tenants, developing pods/drive-thru’son the main car park and new lettings

We are instructed to seek offers in excess of £48,160,000 exclusiveof VAT, for our client’s heritable interest subject to and with thebenefit of the existing leases. A purchase at this level would reflectan attractive Net Initial Yield of 8% after full purchaser’s costs.

SUMMARY

BEACH BOULEVARDRETAIL PARK

PRIME RETAIL PARK INVESTMENTBEACH BOULEVARD RETAIL PARK

Opportunity to acquireprime retail park investment

in Aberdeen

The retail park benefitsfrom Class 1 Retail consent

WAULT to expiry10.23 years

Future asset managementopportunities

Strong tenant line-up ataffordable rental levels

91% of tenants hold5A1 or 5A2 D&B rating

91%

LOCATION

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

ABERDEEN

GLASGOW EDINBURGH

M90

M74M77

M9

M9

M8

A82

A82 A84

A85

A86

A82

A95

A93

A93

A96

A90

A90

A9

A92

A9

A9

A7

A952Inverness Peterhead

FortWilliam

Montrose

ArbroathForfar

DundeePerth

A9

St Andrews

KircaldyDunfermline

Livingston

Motherwell Berwick-upon-Tweed

FalkirkDunoon

StirlingGreenock

PaisleyEast

Kilbride

A90

A92

Aberdeen is Scotland’s third largest City and the administrative centrefor north east Scotland.The City is considered the oil capital of Europe, being the major centre for North Sea Oil relatedactivities. The population of Aberdeen City is in theorder of 223,000 with the regional population of circa 446,660.

Aberdeen is one of the most prosperous cities inthe UK and is consistently rated highly for itsquality of life, given its status as a global centre ofexcellence in both the oil and renewable industrysectors. Aberdeen has 4% of Scotland’s totalpopulation and this is projected to increase to inexcess of 271,000 people by 2035, an increase of20%. It is also home to 28 of Scotland’s top 100companies and has average earnings that are 21%above the Scottish national average.

There are two universities in Aberdeen, these arethe University of Aberdeen and Robert GordonUniversity with these two institutions being the twolargest employers outside of the oil industry.

Located some 125 miles north of Edinburgh, 145miles north east of Glasgow and 100 miles to theeast of Inverness, Aberdeen benefits from excellentcommunication links. By road, the A90 linksAberdeen to the national motorway network,providing access to Glasgow and Edinburgh, whilstthe A96 provides access to Inverness and the northwest of Scotland. The Aberdeen Western PeripheralRoute, which provides a new city by-pass, was fullyopened in February 2019.

Aberdeen average earnings21% above Scottish average*

250,000 people within20 minute drive time*

58.3% of totalhouseholds are ABC1*

446,660 people withinwider Aberdeen catchment*

58.3%

*SOURCE — Aberdeen City Council / ONS — Annual Survey of Hours and Earnings

ABERDEENAIRPORT

ABERD

EEN

WES

TERN

PERI

PHER

AL R

OUT

E

ABERDEEN WESTERN PERIPHERAL ROUTE

A90

A90

A90

A90

A96

A96

A92

A92

A92

A92

A944

A944A944

A956

B997

B997

B999

B999

B997

B983

B9119

A956

A956

B9119

ABERDEEN

Old Aberdeen

CothalPotterton

Milden

Blackdog

Bridgeof Dee

Bieldside Banchory

A96 BEACH BOULEVARD RETAIL PARK

ROYALABERDEENGOLF CLUB

MURCARLINKS

GOLF CLUB

UNIVERSITYOF ABERDEEN

EXISTING ABERDEENEXHIBITION &CONFERENCE CENTRE

NEW ABERDEENEXHIBITION &

CONFERENCE CENTRE

A947

Mundurno

Cloverhill

Kingswells

Cults A93

Bucksburn

Persley

Bridgeof Don

SITUATIONBeach Boulevard Retail Park benefits from being strategically located in the city centre.It is situated to the east of the city centre, close tothe waterfront and at the junction of BeachBoulevard and Links Road. It sits opposite thepopular Queens Links Beach Boulevard LeisureCentre and the surrounding area is a mix ofcommercial and residential property.

Within the Aberdeen City area, 6,242 new homesare proposed over the next 5 years. As part of thisexpansion, Stewart Milne homes have securedplanning consent for the development ofapproximately 350 new homes on the site of theformer Aberdeen Football Club stadium site atPittodrie, to the north of Boulevard Retail Park.

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

Strategically located withinAberdeen City Centre

Surrounding mix of commercialand residential property

6,242 new residential units projectedfor Aberdeen City area in next 5 years*

*SOURCE — Aberdeen City Council – Housing Land Audit 2019

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

LINKS ROAD

O

CO

TTON

STREET

BEA

CH

BO

ULEVA

RD

AVAILABLE

961 car parking spaces

AVAILABLESTORAGE

Class 1 Retail planning consent

961 car parking spaces Dedicated service yards

224,277 sq ft

DESCRIPTIONBoulevard Retail Park is the largest retail park by floor space in Aberdeen, extending to 224,277 sq ft.The Park benefits from Class 1 consent across all units, dedicated servicing and 961 car parking spaces, providing a generous ratio of 4.27 spaces per 1,000 sq ft.

The main terrace is of portal steel frame construction and is sub-divided into seven units. There are two other terraces situated perpendicular to the main terrace.The terrace to the north is sub-divided into four units that include a foodstore. The terrace to the south is sub-divided into two units.

ABERDEENAIRPORT

ABERDEEN

Bridgeof Dee

Bridgeof Don

A96

A96

A92

A92

A92

A92

A93

A956

A944A944

A96

A947

A956

A956

A90B997

B9077

B9077

BEACH BOULEVARD RETAIL PARK

2Bridge of Don

Retail Park

Berryden Retail Park / Centrepoint Retail Park 1

Kittybrewster Retail Park3

Union Square

5

Garthdee Retail Park 4

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

ABERDEEN - RETAIL WAREHOUSE PROVISIONIn addition to Beach Boulevard Retail Park, Aberdeen has the following retail warehouse schemes, whoselocations are shown on the plan opposite:

1. Berryden Retail Park / Centrepoint Retail ParkAlthough under separate ownership, these two parks lie immediately adjacent to each other and areeffectively linked. Berryden comprises approximately 74,293 sq ft of accommodation let to Next, Argos,Mothercare and Currys. Top rents stand at approximately £23.50 per sq ft.

Centrepoint, which extends to approximately 95,500 sq ft is anchored by a Sainsbury’s foodstore and alsohas units let to Mecca Bingo, Poundland, Harry Corry, Furniture Mountain and Matalan. The headline rentstands at approximately £17.75 per sq ft.

2. Bridge of Don Retail ParkBridge of Don comprises approximately 81,921 sq ft of retail warehousing accommodation, anchored bya 40,000 sq ft B&Q. Additional tenants include Pets at Home, Marks & Spencer plc, Carpetright, HomeBargains and Costa. Headline rents are approximately £18.50 per sq ft.

3. Kittybrewster Retail ParkKittybrewster extends to approximately 154,078 sq ft of retail warehouse accommodation across 13 units. Occupiers within the park are Carpetright, Halfords, Oak Furnitureland, Tapi, SCS, TK Maxx, B&M, Harveys, Sports Direct, DFS, Pure Gym and McDonald’s. Headline rents on the park areapproximately £29.95 per sq ft.

4. Garthdee Retail ParkGarthdee comprises approximately 35,000 sq ft of retail warehouse accommodation let to Boots andCurrys, however there is also a 100,000 sq ft B&Q that lies adjacent to the site in addition to large formatAsda and Sainsbury’s foodstores. Headline rents at Garthdee stand at approximately £30 per sq ft.

5. Union SquareTo the rear of Hammerson’s Union Square Shopping Centre development in the city centre, there are anumber of larger retail warehouse style units fronting the car park. These are let to predominantly fashiontenants, including Next, Outfit, M&S, Superdry and JD Sports. Headline rents stand at approximately £35 per sq ft. However, it should be noted that there are currently proposals to further extend theshopping centre which would result in a loss of some, if not all, of the current retail warehouse units.

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

UNIT TENANT FASCIA SIZE (SQ FT) LEASE START NEXT REVIEW LEASE END BREAKS PASSING RENT RENTAL RATE COMMENTS 1 Asda Stores Limited Asda 85,178 26/05/2003 28/05/2018 25/05/2033 - £1,626,900 £19.10 1 1A Costa Limited Costa 2,220 25/03/2019 25/03/2024 24/03/2034 24/03/2029 £65,000 £29.28 2 1B Pets at Home Limited Pets at Home 7,524 08/03/2004 08/03/2019 07/03/2024 - £138,750 £18.44 3 1C Under Offer Card Factory 1,500 - - - - £45,000 £30.00 4 1D To Let - Storage Vacant 1,528 - - - - £0 £0.00 2 Dave Whelan Sports Limited DW Sports 22,543 09/03/2004 09/03/2024 27/02/2029 - £521,376 £23.13 5 3 Iceland Foods Limited Iceland 9,992 09/07/2012 09/07/2022 08/07/2027 - £174,860 £17.50 6 4 Wren Kitchens Limited Wren Kitchens 10,095 19/10/2010 - 18/10/2020 - £174,598 £17.30 5 TJ Morris Limited Home Bargains 10,000 25/10/2010 25/10/2020 24/10/2025 - £165,512 £16.55 7 6 & 7 Smyths Toys UK Limited Smyths Toys 20,108 02/06/2014 02/06/2019 02/06/2029 *02/06/2025 £311,674 £15.50 8 8 To Let N/A 8,446 - - - - £140,000 £16.58 9 9 & 10 Aldi Stores Limited Aldi 14,989 09/08/2007 09/08/2022 09/08/2037 - £247,319 £16.50 10 11 Pagazzi Lighting Limited Pagazzi 10,034 23/09/2003 23/09/2023 22/09/2028 - £171,205 £17.06 11 12 & 13 Dunelm (Soft Furnishings) Limited Dunelm 20,120 02/07/2007 02/07/2022 01/07/2027 - £331,980 £16.50 12 224,277 £4,114,174

1. Review in negotiations. OMV review basis. Upward Only2. Reviewed to lower of OMV or 3% pa compounded. Upwards Only.3. Reviewed to OMV and Upwards Only. Notice served.4. In legals with completion imminent 5. Fixed rental uplift to £589,885 pa at next review. Stated GIA of 22,500 sq ft in lease.

6. Reviewed to OMV. Upwards Only.7. Reviewed to lower of OMV or 2% pa compounded. Upwards Only. Personal

concession granted to TJ Morris Limited not to let any unit to a company tradingas a “B&M” store.

8. Reviewed to lower of OMV or 2.5% pa compounded. Upwards Only. *In negotiations to extract the break.

9. Rent, rates & service charge guarantee x 3 years. 10. Reviewed to RPI (1%-2.5% c&c). Lease regear in legals on stated terms. Term to

be extended by 10 years. Tenant has an option to extend the lease for a furtherperiod of 10 years from 09/08/2037 on giving 6 months notice.

11. Reviewed to OMV. Upwards Only.

12. Reviewed to lower of OMV or rent multiplied by 1.1314. Upwards Only. Tenanthas an option to extend the lease for a further period of 10 years from02/07/2027 on giving 6 months notice.

TENANCIES

INCOME ANALYSISWAULT to expiry 10.23 yearsWAULT to break 10.15 yearsTotal annual rental income of £4,114,174.

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

COVENANT INFORMATION

UNIT TENANT D&B RATING YEAR END SALES TURNOVER (000s) PRE-TAX PROFITS (000s) NET WORTH (000s) 1 Asda Stores 5A1 31/12/2018 £22,842,000 £484,800 £5,471,500

1A Costa Limited 5A1 01/03/2018 £951,684 £105,215 £521,738

1B Pets at Home Limited 5A1 29/03/2018 £804,848 £53,922 £690,294

1C Sportswift Limited (under offer) 4A1 31/01/2019 £417,167 £66,206 £24,056 2 Dave Whelan Sports Limited 5A2 31/03/2018 £222,961 -£8,925 £42,100

3 Iceland Foods plc 5A2 29/03/2019 £3,022,800 £31,200 £792,900

4 The West Retail Group Limited 5A2 31/12/2018 £701,148 £38,340 £72,385

5 TJ Morris Limited 5A1 30/06/2018 £2,143,267 £202,700 £911,755

6 & 7 Smyths Toys UK Limited 5A1 30/12/2018 £581,570 £14,532 £43,499

9 & 10 Aldi Stores Limited 5A1 31/12/2018 £11,334,428 £182,151 £2,665,996

11 Pagazzi Lighting Limited**** A2 31/03/2018 - - £620

12 & 13 Dunelm (Soft Furnishings) Limited 5A1 30/06/2018 £1,050,100 £91,500 £121,100

**** NO TURNOVER OR PROFIT FIGURES SUBMITTED IN THE 2018 ACCOUNTS

Asda39.54%

Costa1.58%

Pets at Home3.37%Card Factory

1.09%DW Sports

12.67%

Iceland4.25%

Wren Kitchens4.24%

Home Bargains4.02%

Smyths Toys7.58%

Unit 8 Guarantee3.40%

Aldi6.01%

Pagazzi4.16%

Dunelm8.07%

0-5 years8%

5-10 years44.3%

10+ years47.7%

% OF INCOME BY TENANT CURRENT INCOME UNEXPIRED TERM PROFILE

TENUREThe property is held on a heritable title (Scottish equivalent of English freehold).

PLANNINGBeach Boulevard Retail Park benefits from unrestricted Class 1 retail consentacross the entire park. Further information can be provided on request.

EPC’sCopies of all EPC’s are available on request.

LEGAL COSTSEach party will be responsible for their own legal costs incurred in connectionwith the transaction.

VATOur clients have elected to waive exemption for VAT and accordingly VAT will bepayable on the purchase price, although we anticipate the sale will be dealt withby way of a Transfer of a Going Concern (TOGC).

PROPOSALWe are instructed to seek offers in excess of £48,160,000 (FORTY EIGHTMILLION ONE HUNDRED AND SIXTY THOUSAND POUNDS STERLING),exclusive of VAT for the heritable interest subject to and with the benefit of theexisting leases.

A purchase at this level would reflect an attractive Net Initial Yield of 8% afterallowing for full purchasers costs.

BEACH BOULEVARD RETAIL PARK PRIME RETAIL PARK INVESTMENT

FURTHER INFORMATIONPlease contact the joint selling agents.

Alasdair Coates t: 07887 781298e: alasdair@coatesandco.netMark Dawson t: 07826 916559e: mark@coatesandco.net

Cathal Keane t: 07808 627224e: cathal@sheridanproperty.co.uk

Stewart Sheridan t: 07740 940898e: stewart@sheridanproperty.co.uk

sheridanproperty.co.uk

Sheridan Property Consultants/Coates & Co for themselves and for the vendors or lessors of this property whose agents they are given notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of eachof them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants/Coates & Co has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate. October 2019. Alamo Design 01924 471114.

BEACH BOULEVARDRETAIL PARK ABERDEEN AB24 5EF