70 CARRON ROAD FALKIRK FK2 7RR

Retail Warehouse Investment Opportunity Secured to 5A1 Covenant

MATALAN

EXECUTIVE SUMMARY• Well presented standalone retail warehouse extending to 45,542 sq ft

• Prominent location close to Falkirk town centre with excellent accessibility via road and public transport

• Fully let to 5A1 covenant Matalan Retail Ltd providing over 6 years secure income until 13 October 2024

• Total passing rent of £422,000 per annum reflecting a low rental rate of £12.03 per sq ft

• Heritable interest, Scottish equivalent of English freehold

• We are instructed to seek offers in excess of £4,420,000 reflecting a Net Initial Yield of 9.00% assuming purchaser’s costs based on LBTT.

RETAIL WAREHOUSE INVESTMENT OPPORTUNITY | 2

CARRON MEDICAL CENTRE

B902

Indicative site plan only

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LOCATIONFalkirk is located in the central belt of Scotland, 26 miles north-west of Edinburgh and 25 miles north-east of Glasgow. The town is well positioned benefitting from excellent transport links to Edinburgh, Glasgow and the rest of Scotland. The town has a population of approximately 35,398 people with a wider Falkirk Council population of 155,990.

Falkirk’s location within Scotland’s Central Belt results in the town benefitting from an extensive catchment area. The town is well served by the motorway network, with immediate access to several junctions of the M9 and M876 motorways leading to Stirling, Edinburgh, Glasgow and surrounding towns.

Falkirk benefits from two railway stations, Falkirk Grahamston and Falkirk High. The two stations provide links to the local area as well as Edinburgh, Glasgow and Stirling. Falkirk Grahamston station is located one mile south of the property. The property is also accessible by bus with the number 6 and 7 First Bus services running along Carron Road, with bus stops approximately 50 metres from the property.

There are two major international airports within an hour of Falkirk. Edinburgh Airport, located around 20 miles to the east and providing flights to over 150 destinations, while Glasgow Airport is 33 miles to the west.

M9

J6

J5

M9

J7J8

M80

M80M876

M876

J1

J2

J5

J4

M876

M9

A9

A9

A9

A904

A803

A9

FalkirkBainsford

Callendar Park

Glensburgh

Laurieston

Grangemouth

Larbert

Camelon

Polmont

Bonnybridge

Denny

Stenhousemuir

Torwood

Glen VillageRedding

A88

A883

A803

A905

A88

A803

A883

B902B902

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SITUATIONThe property is located on the west side of the B902 Carron Road, around 1 mile to the north of Falkirk town centre. Access is gained directly from Carron Road and is shared with the adjacent unit J&W Carpets, which is positioned to the immediate west of the property. The surrounding area is a mix of residential and retailing. To the north of the property is the Carron Centre, including a Co-op Food supermarket, Well Pharmacy, Lidl, Greggs and Carron Medical Centre.

The Co-op own their site and have secured planning permission to build a single storey retail building of two units on part of the car park. The larger of these at 4,000 sq ft is to be a new Co-op store, with the other at 1,500 sq ft to be occupied by Well Pharmacy. It is expected that once this is completed the existing Co-op store building will be demolished and the site will be marketed with potential for a mixed use development that could include retail, leisure, hotel or residential.

SITE PLAN

13.7m

PostsELLIOT TERRACE

5452a

2

to

60

58

19

12 to 18

36

Health Centre

to

to

68

66

32Pol Sta

4 to 10

9

36

16.5m

34

to

83

3032

11

77

13 to 19

to

1

21 to 45

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 Indicative site plan only

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DESCRIPTIONThe property comprises a steel frame retail warehouse store of brick and blockwork cladding with profile metal sheeting above. The building has been extended during Matalan’s occupation. The property provides primarily retailing space at ground floor with separate entrance and exit points both on the south elevation leading directly to the car park. Two mezzanine levels are positioned at either end of the building provide storage and office accommodation. There is a single goods lift linking the main mezzanine store area to the ground floor retailing with a capacity of 800 kg, and deliveries are made to the rear of the unit.

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ACCOMMODATIONThe building has been measured on a net internal area basis in accordance with the RICS Code of Measuring Practice (6th Edition).

Floor Area NIA sq m Area NIA sq ft

Ground 3,257.85 35,067

West mezzanine 175.61 1,890

East mezzanine 797.54 8,585

Total 4,231.00 45,542

TENANCYThe property is let on full repairing and insuring terms to Matalan Retail Ltd on a 25 year lease until 13 October 2024. The passing rent is £422,000 per annum reflecting a rental rate of £12.03 per sq ft on the ground floor area. There is an open market upward only rent review on 14 October 2019. For the purposes of the rent review the mezzanine areas are to be disregarded as a tenant’s improvement.

COVENANTMatalan is a British based fashion and homeware retailer established in 1985. The brand has a focus on providing quality but good value products, and there are now 227 stores across the UK.

Matalan Retail Ltd has a Dun & Bradstreet rating of 5A1 reflecting a minimum risk of business failure.

For the financial year to 24 February 2018 the company had a tangible net worth of £252,600,000.

Year End Turnover (000s)

Profit (Loss) Before Taxes

(000s)

Tangible Net Worth (000s)

24 Feb 2018 1,062,500 29,800 252,600

25 Feb 2017 1,036,100 10,300 317,900

27 Feb 2016 1,060,500 (20,300) 317,800

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TENUREHeritable interest (Scottish equivalent of English freehold).

EPCA copy of the EPC is available upon request.

VATThe property has been elected for VAT purposes and it is anticipated that the investment will be treated as TOGC.

PROPOSALWe are instructed to seek offers in excess of £4,420,000 reflecting a Net Initial Yield of 9.00% assuming purchaser’s costs based on LBTT.

CONTACTStuart Spalding Carolyn McEwan stuart.spalding@cushwake.com carolyn.mcewan@cushwake.com 0141 304 3243 0141 304 3258 07717 178 284 07712 390 872

MISREPRESENTATION ACT

Cushman & Wakefield Debenham Tie Leung Limited (“C&W”) gives notice to anyone who may read these particulars as follows:

1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property only and do not constitute any part of an offer or contract. 2. Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. 3. The photographs appearing in these particulars show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to herein are approximate only. 4. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 5. No person in the employment of C&W has any authority to make or give any representation or warranty whatsoever in relation to this property. 6. This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 7. Unless otherwise stated, no investigations have been made by or on behalf of C&W regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. 8. Copyright and confidentiality Experian, 2015. © Crown copyright and Experian Copyright. All rights reserved. Licence Number PU 100017316. Publication Date: September 2018 2