Riverside Retail Park, LevenRetail Park Investment Opportunity

Riverside Retail Park, LevenInvestment Summary

Leven is an attractive coastal town located 14 miles from St Andrews and 37 miles from Edinburgh.

The town forms the main retailing provision for the Levenmouth conurbation which has a population of over 38,000 people, with significant new housing planned.

Net income of £521,987 per annum with a WAULT of approximately 9.5 years to the break option.

The park has attracted a strong tenant line up of B&Q, Argos and B&M Bargains.

Rents on the park are affordable with B&Q having 5 yearly RPI rent reviews.

Lying adjacent to the town centre, Riverside Retail Park is the only retail park serving the area and is opposite a Sainsbury’s store (circa 42,500 sq ft) and Home Bargains.

Opportunity to add value through adding a drive-thru, subject to planning.

Offers of £7,130,000 (Seven Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English Freehold) in the property.

This represents an attractive net initial yield of 6.90%, after allowing for purchaser’s costs of 6.16% based on Scotland’s Land and Buildings Transaction Tax (LBTT).

Location Demographics

A851

A937

A924

A932A884

A916

A917

A699

A708

A702

A702

A709

A690

A508

6

A592

A701

A701

A721

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A809

A736

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A70

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S C O T L A N D

N O R T H E R N

I R E L A N D

N O R T H E R N

I R E L A N D

Leven

Perth

Berwick-upon-Tweed

Ashington

Coleraine

Blyth

DumfriesLongbenton Whitley Bay

Ballymena

Durham

Workington Redcar

Glenrothes

Kirkcaldy

St Andrews

Falkirk

LivingstoneAirdrie

Kilmarnock

Ayr

Irvine

Hamilton WishawMotherwell

Cumbernauld

Clydebank

Cramlington

Wallsend Jarrow

Houghton le SpringChester-le-Street

SouthBank

BillinghamNewtonAycli�e

Peterlee

Lisburn

Newtownards

Coatbridge

Felling

North Shields

LimavadyBallymoney

CarrickfergusCarrickfergus

Londonderry

South Shields

Carlisle

Hartlepool

Dunfermline

Stirling

Paisley

EastKilbride

Gateshead

Washington

Stockton-on-Tees

BangorNewtownabbey

Aberdeen

Dundee

Glasgow

Newcastleupon Tyne

Sunderland

Middlesbrough

BELFAST

EDINBURGH

The town of Leven has a population of 8,850 people, while the Levenmouth area has a total population of 38,173 people. Levenmouth has been categorised for significant expansion, with 1,650 new homes allocated for the area in the Strategic Development Plan for Edinburgh and South East Fife.

Located in East Fife, Leven is 14 miles from St Andrews and 37 miles from Edinburgh. Leven is the dominant town providing the principal retail provision for the Levenmouoth area, which encapsulates the towns of Leven, Methil and Buckhaven.

The Fife area is a popular location for commuters to Edinburgh. From Leven the A915/A92 provides access to the national motorway network and the M90, which leads directly to Edinburgh. There are also proposals to reintroduce the Levenmouth rail link, which Fife Council are supporting, and this would further enhance the appeal of the area. At present the nearest train station is in Kirkcaldy.

The main employers within the conurbation are Diageo, who have recently invested £86 million in expanding their bottling facility, and Energy Park Fife where over 900 people are employed in the renewable energy sector.

A915 KIRKCALDY / BEDINBURGH

SAINSBURYS PFS

RIVERSIDERETAIL PARK

Situation

Riverside Retail Park, Leven

The subject property is situated on Riverside Road (B933) between the junctions of Aitken Street and Hawkslaw Road, less than half a mile south west of Leven town centre. Sainsbury’s and Home Bargains are situated adjacent to the retail park.

Town Centre Occupiers

Description Tenancy

The park was developed in 2004 and comprises a terrace of 3 retail units extending to 50,539 sq ft (4,695.20 sq m). The park benefits from 201 car parking spaces to the front, with a secure service yard to the rear. Unit 1, which is let to B&Q, has a garden centre to the north.

Within the car park there is a mobile food van and a clothing recycling pod which provide the commercialisation income.

Accomodation The ground floor of the subject property has been measured on a gross internal area (GIA) basis in accordance with the RICS Code of Measuring Practice (6th Edition), and the approximate areas are as follows:

Tenant sq ft sq m

B&Q (Unit 1) 24,996 2,322.21

Argos (Unit 2)* 9,073 842.91

B&M (Unit 3/4) 16,470 1,530.08

Total 50,539 4,695.20

*There is a tenant’s mezzanine extending to 2,969 sq ft (275.82 sq m), which is not rentalised.

The property is multi-let with a current net income of £521,987 per annum.

Unit Tenant Lease Start Lease Expiry Rent Review Break Option Rent (PA)

1 B & Q Plc 04/02/2005 04/02/2030 30/08/2020 * - £240,987

2 Argos Limited 04/02/2005 04/02/2020 04/02/2015 - £90,000

3/4 B & M Retail Limited 21/10/2011 20/10/2026 21/10/2016 21/10/2021 (T) £175,000

Commercialisation M & D Catering £6,000

Commercialisation Terncove Limited £10,000

Total £521,987

*The rent is reviewed 5 yearly, to RPI with a cap and collar of 3% and 0%, compounded annually.

Covenant

B&Q B&Q PLC (Company Number: 00973387) has an Experian score of 100 which provides a Very Low Risk.

Part of the Kingfisher PLC group, B&Q are the UK’s leading DIY and garden centre retailer with 360 stores and over 20,000 employees.

Year Ending28th January 2012 (000s)

2nd February 2013 (000s)

1st February 2014 (000s)

Turnover £3,710,400 £3,637,900 £3,589,500

Pre-Tax Profit £203,300 -£44,100 £138,600

Total Net Worth 4,368,500 £4,305,500 £4,385,900

Riverside Retail Park, Leven

Argos ARGOS LIMITED (Company Number: 01081551) has an Experian score of 100 which provides a Very Low Risk.

Argos is a British catalogue retailer operating in the UK and Ireland. With 737 stores and 340 million website visits a year, it is one of the largest high street retailers in the United Kingdom.

Year Ending3rd March

2012 (000s)2nd March

2013 (000s)1st March

2014 (000s)

Turnover £3,749,910 £3,752,634 £3,872,446

Pre-Tax Profit £17,035 £84,662 £43,992

Total Net Worth £1,170,118 £1,249,775 £1,172,054

B&M Retail B&M RETAIL LIMITED (Company Number: 01357507) has an Experian score of 92 which provides a Very Low Risk.

B&M was formed in 1978 and is now one of the leading variety retailers in the United Kingdom, employing over 20,000 staff across 450 stores. They are also listed on the London Stock Exchange.

Year Ending31st Dec 2011

(000s)31st Dec 2012

(000s)31st March

2014 (000s)

Turnover £712,572 £935,229 £1,509,132

Pre-Tax Profit £51,702 £88,323 £123,398

Total Net Worth £105,539 £171,867 £281,228

Tenure Development PotentialEnergy Performance Certificate

RIVERSIDE

ROAD

AITKEN STREET

RIVER SIDE

DistributionSta

Gas

Riverside Retail Park

El Sub Sta

TelephoneExchange

5

10

El Sub Sta

Filling

Tank

ESS

1

86

3 / 4

2

7

12

Station

PARKER TERRACE

13to

2 0

JanettaTerra

ce

24

31

24

75

31

68

126

0m 25m 50m 75m

Absolute Ownership (Scottish equivalent of English Freehold).

Planning

The property benefits from Open Class 1 (Non Food) planning consent. Full planning permission was granted in December 2003 for the erection of Non-Food retail units including a garden centre, mezzanine office, service yard, car parking and associated landscaping.

There is potential to add value through developing a restaurant pod on the site, subject to planning. Indicative plans are available on request.

VAT

The property has been elected for VAT and therefore VAT will be payable on the purchase price. However it is anticipated that the sale will be treated as a Transfer of A Going Concern (TOGC).

The energy perfromance rating for each unit is set out below:

Unit EPC Rating CO2 Emissions

1 D 60

2 D 60

3 / 4 F 92

Offers of £7,130,000 (Seven Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership (Scottish equivalent of English Freehold) in the property. This represents an attractive net initial yield of 6.90%, after allowing for purchaser’s costs of 6.16% based on Scotland’s Land and Buildings Transaction Tax (LBTT).

For further information please contact: Sarah Stewart T: +44 (0)131 226 8736 E: sarah.stewart@cushwake.com

Stephen Bibby T: +44 (0)131 226 8738 E: stephen.bibby@cushwake.com

Natasha Ross T: +44 (0) 131 226 8735 E: natasha.ross@cushwake.com

Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG

MISREPRESENTATION ACT

Cushman & Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: 1/ The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2/ No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3/ The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4/ Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. 5/ Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. September 2015

Proposal