DRAFT. For Sale Prime Multi-let Trade Counter Investment. Executive Summary SARACEN STREET, GLASGOW G22 5HT

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1 For Sale Prime Multi-let Trade Counter Investment SARACEN STREET, GLASGOW G22 5HT Executive Summary Prime multi-let Trade Counter Investment extending to 159,190 sq ft Strong location easily accessible from Glasgow City Centre and M8 A prime line-up of trade counter operators Total rental income of 995,315 per annum Seeking offers in excess of million Net Initial yield 7% Tenants include Seewoo, Travis Perkins, Toolstation, HSS Hire, Howdens, Screwfix and Euro Car Parts

2 Key Demise for service charge purposes Freehold sold to Angling Centre

3 Location The point is strategically situated approximately 2 km to the north of Glasgow City Centre and is only a few minutes drive from the M8 (junctions 16 and 17). Given its proximity and ease of access to the City Centre the surrounding area is a well established commercial hub and is dominated by industrial and trade counter users. The property occupies a prominent site of five acres on the corner of Possil Road and Saracen Street, with the majority of frontage to Saracen Street. Occupiers within the immediate area include Jewson, Booker Group plc and Grahams Family Dairy. Glasgow is Scotland s largest city with a population of 600,000 and a wider catchment of over 2m within a 30 minute drive. It is Scotland s largest urban economy generating around 17billion GVA each year. The number of jobs located in the city grew by more than 70,000 in the ten years to 2015, making it one of the fastest growing cities in the UK. POSSIL ROAD KILLEARN STREET KEPPOCHILL ROAD GARSCUBE ROAD BAIRD STREET 3

4 Description The property has been constructed to provide an L-shape terrace of 10 units ranging from 4,418 sq ft to 88,158 sq ft and a total area of 159,190 sq ft. The larger Seewoo unit, situated at the southern end of the terrace fronting Possil Road, enjoys return frontage while the main terrace of trade counter units fronts on to Saracen Street. There are two vehicle accesses along Saracen Street with an additional entry point on Possil Road. The building is generally of block wall construction under a truss roof with generous natural lighting. Each unit benefits from a customer door fronting Saracen Street and a rear roller-shutter door for servicing. Units have a clear eaves height of 5 metres. Front elevations are clad in composite panels with rear elevations of profile sheeting. Customer parking is situated to the front of the units and there is additional parking on the open area adjacent to unit 9 (Euro Car Parts) at the end of the terrace. Internally, units are fitted out in the corporate style of each tenant at the front customer facing area, with the rear sections used to hold working stock. The Feuhold of the Angling Centre unit was sold to the owner occupier a number of years ago. 4

5 Aerial View GLASGOW CITY CENTRE J17 Glasgow Caledonian Univeristy Glasgow HM Passport Office M8 J16 M8 Graham Family Dairies Booker Wholesale Jewson Dulux Decorator Centre The Whisky Bond Hamiltonhill Oakbank Industrial Estate Lidl Possilpark Health and Care Centre 5

6 Site The property occupies a large corner site, rectangular in shape, of approximately 8.3 acres, including the Angling Centre which has been sold off. The buildings under ownership extend to 159,190 sq ft representing a site coverage of 44% Asset Management Opportunities Secure planning permission for an additional unit on the area of land at the end of the terrace. Planning consent was previously granted on 27th March 2008 for erection of a storage and distribution unit (Class 6) under planning application 08/00152/DC. Acquire adjoining properties to enable further development. Carve up larger units on expiry to increase rental rate Negotiate removal of tenant break options to improve the expiry profile Market Commentary Market Rental Values: The trade counter sector continues to thrive and strong occupier demand is driving rents; we are aware of a number of trade counter transactions in the Greater Glasgow area. Date Address Tenant Size (sq ft) Apr-17 Jan-17 Feb-17 Sep-16 Jan-15 Jul-17 Sep-17 Kingston Bridge Trading Estate, Houston Place Kingston Bridge Trading Estate, Houston Place Kingston Bridge Trading Estate, Houston Place Kingston Bridge Trading Estate, Houston Place Inner City Trading Estate, Kyle Street Rutherglen Links Business Park, Cambuslang Road Rutherglen Links Business Park, Cambuslang Road Investment Transactions: Rental Rate Transaction Type William Wilson 10, Letting HSS Hire 4, Letting Fyfe & McGrouther 14, Rent Review Screwfix 10, Rent Review City Electrical Factors 3, Renewal Screwfix 7, Letting Eurocell 2, Letting We are aware of a number of trade counter and industrial property that has been traded over the past 18 months. Date Address Tenant Price Yield Jul-17 Oakbank Trading Estate, Glasgow 9 blocks of modern industrial and trade counter units totaling 87,500 sq ft on 7.4 acres. AWULT of 4.5 years, 3.2 years to breaks. There were two vacant units totaling 13,667 sq ft, and on the assumption that rents on these units had been topped up the NIY reflected circa 7% m 6.3% Jun-17 Kingston Bridge Trading Estate, Glasgow Prime estate extending to 39,278 sq ft. Let to Toolstation, Johnstone s, ARCO, Dulux and CEF. Total Income of 298,055. The property was acquired by Scotmid Pension Fund. 4.7m 5.97% Jun-17 Excelsior Park, Wishaw The estate covers 109,523 sq ft and is split into 11 units with occupiers including Howden Joinery and Siemens. Acquired by Northern Trust for 6.4m reflecting 7.9% NIY. 6.4m 7.9% 6

7 Accommodation The approximate gross internal areas are as follows: Description Tenant Floor Area (sq ft) Unit 2 & 3 SeeWoo Foods (Glasgow) Limited 88,158 Unit 4A Travis Perkins Trading Company Limited 6,661 Unit 4B Toolstation Limited 4,418 Unit 5 Chai Fey Lee (Soft Play) 5,319 Unit 5A HSS Hire Service Group Limited 5,433 Unit 6 Howden Joinery Properties Limited 10,753 Unit 7 Screwfix Direct Limited 10,753 Unit 8 The University Court of the University of Glasgow 16,016 Unit 9 Euro Car Parts Limited 11,059 Substation SP Distribution Limited 620 Tenure Heritable (Scottish equivalent of English Freehold). Energy Performance Certificate The property has an EPC rating of S63. Service Charge Total Area 159,190 sq ft The service charge budget for the current year is 191,007 reflecting a rate of 1.20 per sq ft. A copy of the service charge budget can be made available to interested parties and is held within the data room. 7

8 Tenancy Information Unit Tenant Lease Term Lease Start Lease Expiry Break Clause Next Review Floor Area (sq ft) Total Rent p.a. Unit 2 & 3 SeeWoo Foods (Glasgow) Limited 25 06/02/ /02/ /02/26 06/02/ , ,000 Unit 4A Travis Perkins Trading Company Limited 10 26/08/ /08/ /06/22 6,661 46,627 Unit 4B Toolstation Limited 10 22/08/ /08/ /08/22 4,418 31,745 Unit 5 Chai Fey Lee (Soft Play) 25 01/02/ /01/ /01/23 5,319 43,000 Unit 5A HSS Hire Service Group Limited 25 28/01/ /01/ /01/21 28/01/2021 5,433 38,031 Unit 6 Howden Joinery Properties Limited 15 04/04/ /04/ ,753 61,300 Unit 7 Screwfix Direct Limited 10 02/07/ /07/ /07/ ,753 74,430 Unit 8 The University Court of the University of Glasgow 15 01/11/ /10/ /11/22 01/11/ , ,112 Unit 9 Euro Car Parts Limited 15 15/05/ /05/ ,059 63,000 Substation SP Distribution Limited /01/ /12/ TOTAL 159, ,315 8

9 Covenant Information Seewoo Foods (Glasgow) Limited is a subsidiary of Seewoo group Limited and had a turnover of 17,394,738 for the year ending 31 March There is a rental guarantee in place from SeeWoo Group Ltd which is one of the largest suppliers of Oriental foods in the UK with three retail stores, wholesale operations, restaurants and a factory. The company has annual turnover of 72,050,000 and a D&B rating of 3A2 representing a tangible net worth of 8,030,842 and a lower than average risk. Toolstation, part of the Travis Perkins Group, is one of Britain s fastest growing suppliers of tools, accessories and building supplies to the trade, home improvers and self-builders. With a multi-channel offering, Toolstation customers can buy online, at hundreds of branches across the UK, through a dedicated UK call centre or via a mobile website. The company has a D&B rating of 4A1 and a tangible net worth of 28,053,000. Net profits for the year ending 31 December 2016 were 14,700,000. Crown Paints Ltd are part of the Hempel Group. Hempel is a world-leading coatings supplier for the decorative, protective, marine, container and yacht markets. Hempel reported turnover of 1.424bn and net profit of 47,000,000 in Crown Paints Limited had a D&B rating of 4A1 representing minimum risk and a tangible net worth of 15,064,000. The University Court of the University of Glasgow is the governing body of the University. Its powers have been defined over a number of years, commencing in 1858 when the Court was first established, and are set out in a series of Acts of Parliament, the Universities (Scotland) Acts , and subsidiary regulations and ordinances. For the year ending 31 July 2016, the University reported net assets of 762,000,000. Euro Car Parts Limited have a D&B rating of 4A1 representing a tangible net worth of 250,832,903 and minimal risk of business failure. For the year ending 31 December 2015 the company posted a turnover of 905,000,000 and net profits of 70,705,819. Screwfix is part of Kingfisher plc, the international home improvement company, with over 1,100 stores in 10 countries in Europe, Russia and Turkey. The company had sales of 1,306,000,000 for the year ending 31 January 2017 and operating profits of 118,500,000. The company has a 5A1 D&B rating and a tangible net worth of 442,196,000. The HSS Hire Group is a leader in the UK tool and equipment hire market, with a strong national presence and well-established brand. For the year ending 31 December 2016 the Group reported a turnover of 282,399,000. The Group has a D&B rating of 4A1 representing a tangible net worth in excess of 18,000,000 and minimum risk of business failure. Travis Perkins Trading Company Limited is a wholly owned subsidiary of Travis Perkins plc. Travis Perkins Trading Company Limited has a D&B of 5A1 representing a net worth of 409,500,000 and minimal risk. The parent company has a market capitalisation of 3.6bn and had a turnover of 2,728,000,000 for the year to 31 December 2016 Howden Joinery Properties Limited has a D&B rating of N1 representing a net worth of (- 381,000) and minimal risk. The parent company, Howden Joinery Group plc has a D&B rating of 5A1 representing minimal risk and a net worth of 438,000,000. Howden Joinery Group plc which has a market capitalization of 2,679,000 (as at 09/10/17). The Group enjoyed revenues of 1.3bn and operating profit of 237,000,000 in

10 Proposal Offers are sought in excess of M (THIRTEEN MILLION THREE HUNDREW AND EIGHTY FIVE THOUSAND) for our client s heritable interest. A purchase at this level will reflect an attractive Net Initial Yield of 7.00% assuming purchaser costs of 6.17%. This reflects a low capital value of 83 psf. Data Room Further information is available within a data room, please contact Inglis Howie to request access. Further Information For additional information or to arrange an inspection please contact: Scott Howie DD: M: scott.howie@inglishowie.com Peter McKeown DD: M: peter.mckeown@inglishowie.com Inglis Howie for themselves and the vendor of this property, whose agents they are, give notice that: i) these particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute or form part of any offer or contract; ii) all descriptions, areas, references to condition, and all other details are given without responsibility, and any intending purchaser should not rely on these particulars as statements or representations of fact, and must satisfy themselves as to the correctness of each of them; iii) no person in the employment of Inglis Howie has any authority to give representation or warranty whatsoever in relation to this property; iv) unless otherwise stated, all prices, rents, and premiums are quoted exclusive of Value Added Tax at the then current rate. Date of publication May 2018.