97 – 105 George Street, Edinburgh, EH2 3ES

I N V E S T M E N T O P P O R T U N I T Y

– Prominent Grade A listed mixed use terrace located in the heart of

Edinburgh’s city centre

– Situated on George Street, one of Edinburgh’s most sought after leisure

and retail locations

– The property comprises retail and restaurant accommodation on

ground, part first and lower levels with ground and upper floor office

accommodation

– The buildings provide a total net internal area of 2,659.91 sq m

(28,631 sq ft) of accommodation with 9 car parking spaces

– The leisure unit is let to Centotre Limited (t/a Contini) who have been in

occupation for over 15 years

– The upper floors provide modern good quality office space with an

excellent letting history

– WAULT of 7.87 years to lease expiries and 7.18 years to breaks

– Total passing rent of £921,111 per annum (including rental guarantees)

– Heritable interest (Scottish equivalent to English Freehold)

– Offers are sought in excess of £14,389,000, exclusive of VAT, reflecting

a net initial yield of 6% and a capital value of £503 per sq ft, assuming

standard purchaser’s costs and LBTT

EXEC

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G E O R G E S T R E E T

An ever growing population, highly skilled workforce and hard to beat quality of life make Edinburgh an attractive destination for investors.

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20% 55.1%

72.8%

£500 BILLION Edinburgh’s projected population growth by 2039, making it one of the UK’s fastest growing cities.

The percentage of Edinburgh’s population who hold a degree or professional qualification, the highest of any UK city.

Edinburgh is the UK’s largest regional financial centre, with over 30 banks operational in the city, £500 billion of assets under management, and headquarters for major financial institutions including Aberdeen Standard, Royal Bank of Scotland and Sainsbury’s Bank.

The percentage of the working age population in employment, one of the UK’s most economically active populations.

£1.3 BILLION The annual tourist expenditure in Edinburgh, projected to increase to £1.5 billion by the end of 2020.

a n e c o n o m i c

Edinburgh has become the powerhouse of the Scottish investment market. The city is popular with UK and overseas investors alike due to its strong occupier markets, rapidly growing population and burgeoning tourist industry.It is also an attractive place to live and work, regularly ranking highly within lifestyle surveys and has a strong tourist industry, second only to London within the UK.

P O W E R H O U S E

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97-105 George Street occupies a prime location on the northern side of George Street between North Castle Street and Frederick Street in Edinburgh’s ‘Golden Rectangle’ area. This location is much sought after due to the combination of a prestigious business address and the superb selection of retail outlets, restaurants, hotels and bars in the immediate vicinity.

Retail and leisure operators near to the property include Dishoom, The Ivy and Gaucho, Chaophraya, Jo Malone, White Stuff, Hackett, Gant and Victor Hugo.

The property also offers excellent transport links, with both Waverley Rail Station and St Andrews Bus Station a short walk away. There is also a tram stop within five minutes walk on Princes Street.

L O C A T I O N

EDINBURGHCASTLE

WAVERLEYSTATION

QUEEN ST

QUEEN STREET GARDENS

ST JAMESQUARTER

ST ANDREWSQUARE

CHARLOTTESQUARE

PRINCES STREET GARDENS

DU

ND

AS

ST

RE

ET

YORK PLACE

DEAN GARDENS

FINANCIAL DISTRICT

WEST END

GEORGE ST

FR

ED

ER

ICK

ST

RE

ET

PRINCES ST

HAYMARKET STATION

5 min

s

10 m

ins

7 8 9 10 12 13 16 17 18

11 14 15

1

5 6

19

2 3 4

20

21

TRAM STOP TRAM ROUTEs t r e e t V I E W1 Jo Malone

2 GANT

3 The White Company

4 Hackett

5 Hollister

6 All Saints

7 Jack Wills

8 Church’s

9 lululemon

10 Helly Hansen

11 Kiehls

12 Laura Ashley

13 Hobbs

14 Charles Tyrwhitt

15 TM Lewin

16 Anthropologie

17 Molton Brown

18 Mint Velvet

19 Marks & Spencer

20 Jenners

21 Harvey Nichols

Edinburgh Waverley

Edinburgh Castle

Usher Hall

EICCThe Dome

Assembly Rooms

A E R I A L V I E W

The Balmoral

Malmaison The Ivy on the Square

Intercontinental Edinburgh - The George

The KimptonCharlotte Square

Waldorf Astoria

TheSheraton

ST ANDREWS SQUARE

CHARLOTTESQUARE

FREDERICK STREETHANOVER STREET CASTLE STREET

GEORGE STREET

The National Gallery of Scotland

Princes StreetGardens

PRINCES STREET

Edinburgh benefits from direct access to the national

motorway network connected by the A1 from the south

and south-east, M90 and A9 from the north and the M8 from the west.

ROAD

Edinburgh’s two main railway stations, Haymarket and Waverley, are within short walking distance from the subject property. Both stations offer direct services to London and services to all major Scottish centres.

RAIL

The city’s tram network opened in 2014 and provides a direct link from Edinburgh Airport into the city centre through west Edinburgh. The closest tram stops are West End and Princes Street, which are equidistant from the subject property.

TRAM

0 8

Edinburgh Airport is located just 8 miles west of the city centre and is easily accessed via the motorway, tram and bus networks. Acquired by Global Infrastructure Partners in 2012, the Airport continues to benefit from significant investment and is Scotland’s busiest airport with over 37 operating airlines flying to in excess of 150 destinations with over 14 million passengers passing through annually.

AIR

c o n n e c t i v i t y

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0 9

The property consists of three linked buildings on the north side of George Street set over six stories. The leisure unit at 103 George Street is let to Centotre Limited (t/a Contini Ristorante), a well-established local restaurant. The retail units on each side are let to Whistles and Space NK respectively.

101 George Street offers a mix of office space with suites ranging from 18.5 sq m (200 sq ft) to 325 sq m (3,500 sq ft). There is traditional cellular office space to the front of the building, with a modern four storey open plan extension to the rear.

The building benefits from a secure underground car park, accessed from Hill Street Lane to the rear of the property. The modern reception has been finished to a high standard and incorporates two passenger lifts and DDA compliant access.

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m u l t i - l e v e lh i g h q u a l i t y

2SELF CONTAINEDRETAIL UNITS

1LEISURE UNIT

7OFFICE LEVELS

9SECUREPARKING SPACES

OFFICE

OFFICE

OFFICE

OFFICE

OFFICE OFFICE OFFICE OFFICE

TOILET

TOILET

LOBBYSTAIR

LIFT

STAIRPROTECTEDLOBBY

LIFT

CORRIDOR

TOILET LOBBY

duct

L6-11

L6-01

L6-02L6-03L6-04L6-05L6-06

L6-07

L6-08

L6-09

L6-13L6-10

L6-18L6-17

L6-16

L6-14

L6-12

L6-1

5

L6-19D96

D97

D98 D99

D95

D109

D94 D93

D91

D92

D90 D89

D100

D102

D88

D101

D87

D103

D104

D106

D107

D95a

D109

I N D I C A T I V E F L O O R P L A N S

OFFICE

RISERSTAIR

TOILET

PROTECTEDLOBBY

STAIR

LIFT

CORR

IDO

R

RWP

OFFICE

RWP

SERVICE RISER DUCT 600.0000

3499.9375

L4-06

L4-07

L4-10

L4-08 L4-09

L4-11

L4-03L4-05

L4-02L4-01

D59

D55

D54

D58

D57

D56

D50

D53

D49

D5260 minSCFD

SCFD30 min

SCFD60 min

D121

F

IRE

ESCA

PE 2

Kitc

hen

Stor

eRo

om

NORTH

OFFICE

TOILET

OFFICE

RECE

PTIO

N

STAIR

LIFT

LIFT

LOBBY

RISER

PROTECTEDLOBBY

RISE

R

Wai

ting

area

STAIR

60minSCFD

60min SCFD

60minSCFD

* * * * * * * *

*

CONTINI

WHISTLES

SPACE NK

FE

L2-10

L2-13L2-12

L2-11

L2-15

L2-03

L2-09

L2-06

L2-04

L2-05

L2-02

L2-01

L2-13

L2-08

E

E

E

L2-16

D28

D30

D29

D34

D32

D31

D25

D27

D23

D22

D21

D24

D19

D18

D33

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G R O U N D L E V E L 3

L E V E L 6

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r e t a i l1.7 Edinburgh’s retail market is set to have the biggest change in recent memory with the development of the new St James’ centre. The scheme will provide a total of 1.7 million sq ft of mixed-use space and is set to refocus retailing in Edinburgh towards the east end of the city centre. Of the 1.7 million sq ft, 750,000 sq ft is due to be retail or leisure space, of which 160,000 sq ft is taken up by the existing John Lewis anchor store.

Edinburgh is Scotland’s capital city, financial centre and home to the Scottish Parliament. In addition, it is the UK’s most popular tourist destination after London and hosts the world renowned International Fringe Festival during the month of August. The rapidly growing local population, combined with the large number of tourist visitors makes Edinburgh an attractive location for retailers.

million sq ft

£2.56 BILLION Annual in store comparison retail spending. In excess of £1 billion is contributed from tourism averaging £399 per visit.

highest GVAEdinburgh has the highest GVA per capita and average disposable income per resident of all UK regional cities.

PER CAPITA

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Edinburgh’s office sector has a marked imbalance between supply and demand which is resulting in strong rental growth. There is a very limited development pipeline and the lack of supply has been exacerbated by the loss of over 800,000 sq ft of city centre office accommodation to alternative uses in recent times.

348,819 sq ftCITY CENTRE TAKE UP

402,604 sq ft

availabilitygrade a

A S T R O N G O F F I C E

S T O R YThe city centre development pipeline is due to deliver 208,474 sq ft over the next two years and 340,829 sq ft thereafter. This pipeline is unlikely to meet increasing demand and new development sites are in limited supply due to Edinburgh’s city centre being a World Heritage Site.

This imbalance between supply and demand has resulted in strong rental growth, with prime rents growing on average 4.9% per annum to £35.50 per sq ft over a five year period. Edinburgh offices have one of the highest average compound annual growth rate of any of

the main UK regional cities, and has the highest forecast total return over the next five years averaging 7.9%.

The offices at 101 George Street provide a good mix of cellular and open plan office space and as such, the building has historically let extremely well, with only two small suites remaining. The space would also lend itself well as serviced office space. The strong rental growth seen across the city in general has been mirrored in the subject property, with rents growing by 26% over the last three years from £22.00 per sq ft to £26.00 per sq ft.

26% RENTAL growth at subject property

OVER three years

T E N A N C Y S C H E D U L E

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Demise Areas Lease Dates Rent

Demise Reference Tenant NameNIA

(sq.ft.)ITZA

Car Spaces

Start Date

Expiry Date

Next Break

Next Review

RentContracted

Rent(psf)

Comments

97-99 George Street Whistles Limited (t/a Whistles) 3664 1231 03/02/2000 28/11/2024 28/11/2019 £200,000.00 £162.52

2019 rent review outstanding.

103 George Street Centotre Ltd (t/a Contini Ristorante) 4076 09/02/2004 08/02/2039 09/02/2019 £172,500.00 £42.32 Rent reviewed on Class 3 basis, 2019 rent review outstanding.

105 George St Space NK 2506 878 17/09/1999 28/08/2029 28/08/2024 £143,750.00 £163.70 10 year lease extension from August 2019. 6 months rent free.

Ground floor offices LEAP Legal Software UK 3551 07/06/2017 06/06/2022 07/06/2020 £53,295.00 £15.01

First floor offices Randstad 2568 1 03/07/2017 02/07/2027 03/07/2022 03/07/2022 £59,018.00 £22.01 £2,500 pa for 1 car parking space. Tenant break on 9 months notice.

Third floor offices Aepona Limited (t/a Persistent Systems) 2589 28/10/2019 27/10/2024 £67,652.00 £26.13 8 months rent free; Service charge cap of £35,621.38 increasing annually by RPI; Schedule of Condition; Deposit £22,550.

Suite 4.01 & Conference Room Architects Design Partnership LLP 1216 19/10/2015 18/10/2020 £25,000.00 £20.55

Suites 4.02 & 4.03 Vacant 361 £10,830.00 £30.00 2 year rent and service charge guarentee.

Suites 4.04 APUC Limited 819 01/09/2015 01/08/2024 02/09/2021 £22,522.50 £27.48 Tenant only option to terminate on 6 months notice.

Suite 4.05 Vacant 239 £7,170.00 £30.00 2 year rent and service charge guarentee.

Suites 4.06 & 4.07 Centotre Ltd 376 01/07/2015 30/06/2020 £9,750.00 £25.96 Apportioned as £3,750 pa in respect of 4.07 and £6,000 pa in respect of 4.06.

Room 4.08 - 4.09 & 6.05 & 6.08

Parabola Real Estate Investment Management LLP 1551 1 01/10/2015 30/06/2020 £46,000.00 £27.89

Tenant acquired an additional car space as of 5th Dec 2018, resulting in a rent increase from £43,000 to £46,000. Service charge cap of £20,646.50; Schedule of Condition; Guarantee by Parabola Real Estate Holdings Limited.

Part Sixth 6.06 & 6.07 Heath Lambert (Arthur J Gallagher) 670 1 01/12/2012 08/04/2024 06/01/2018 £16,186.00 £20.43 £2,500 pa for 1 car parking space. 2018 rent review outstanding.

5th Floor Heath Lambert (Arthur J Gallagher) 2425 1 08/04/2014 09/04/2024 08/04/2019 £42,160.00 £16.35 £2,500 pa for 1 car parking space. 2019 rent review outstanding.

Suites 6.01-6.03Net Talent Limited (guarantee from Compello Group (MY BPOS Limited))

1358 4 01/08/2015 31/07/2025 01/08/2020 01/08/2020 £30,752.50 £14.55

Tenant break on six months notice, 3 months rent free granted if not exercised. Service charge cap of £13,064.55 increasing annually by RPI. (Assumed £2,750 pa per space for car parking)

7th floor offices Nathaniel Lichfield & Partners Ltd 661 1 30/03/2015 29/03/2020 £14,525.00 £17.81

Tenant has agreed a lease renewal for 5 years with a tenant only break option after year 3 subject to 9 months notice. The tenant will benefit from 3 months rent free folllowed by an additonal 2 months should the break option not be exercised. Tenant will undertake work to increase the floor area of the suite which the landlord will reimburse either by a capital contribution or extra rent free, the rent payable under the new lease will be £20,750 per annum. Service charge cap £13.00 psf increasing annually by RPI. (Assumed £2,750 pa per space for car parking)

Total 28,631 9 £921,111.00

COVE

NAN

T Whistles is a contemporary fashion brand, based in London. Founded in 1976 with 46 stores across the UK.

Persistent Systems is a technology services company which was incorporated on 16 May 1990.

Net Talent are experts in IT, Data and Digital recruitment. Founded in 2010 and backed by Compello Staffing Group.

Contini is family run Italian restaurant opened in 2004. Since then they have opened two further establishments at the Scottish National Gallery and the Royal Mile.

Architects Design Partnership Llp is an architecture & planning company based out of Park End St, Oxford, United Kingdom.

Lichfields are a planning and development company founded in the UK in 1962.

Parabola are property investors and developers based in Newcastle and Edinburgh.

Founded in 1991, Space NK first opened in Covent Garden in 1993. Today there are 72 stores and a further 29 in the US. Space NK also launched 8 stores in China in 2018 and there are more on the horizon.

APUC is a not-for-profit Shared Service organisation jointly owned by all Universities and Colleges in Scotland. It provides shared services to institutions and where applicable to sector owned bodies.

LEAP is legal practice management software offered by LEAP Legal Software, a privately held, Australian based software company.

Randstad NV, commonly known as Randstad is a Dutch multinational human resource consulting firm headquartered in Diemen, Netherlands. It was founded in 1960 and operates in around 39 countries.

Arthur J. Gallagher & Co. is a US-based global insurance brokerage and risk management services firm headquartered in Chicago. The firm was established in 1927 and is one of the largest insurance brokers in the world.

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Tenant Credit Rating

Whistles Limited (t/a Whistles) 97

Centotre Ltd (t/a Contini Ristorante) 38

Space NK 95

LEAP Legal Software UK 23

Randstad 89

Persistent Systems n/a

Architects Design Partnership LLP n/a

APUC Limited 89

Centotre Ltd 38

Parabola Real Estate Investment Management LLP n/a

Heath Lambert (Arthur J Gallagher) 64

Net Talent Limited (guarantee from Compello Group) 92

Nathaniel Lichfield & Partners Ltd 97

B R E A K D O W N O F I N C O M E

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S E C T O R

C R E D I T S C O R E

75-100

50-75

25-50

0-25

7 %

2 4%

8 %6 1%

Office

Retail

Leisure

4 3 %

1 9 %

3 8 %

TENUREThe property is held via Heritable Interest (Scottish equivalent of English Freehold).

VATThe property has been elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale can be treated as a Transfer of Going Concern.

EPCA copy of the EPC certificates are available on request.

SERVICE CHARGEFurther detail on the service charge is available on request.

PROPOSALWe are instructed to seek offers in excess of £14,389,000, exclusive of VAT. A purchase at this level would reflect a net initial yield of 6%, after deduction of purchaser’s costs at 6.8%.

F U R T H E R

I N F O R M A T I O N

DISCLAIMER MISREPRESENTATION ACT: Knight Frank LLP give notice to anyone who may read these particulars as follows: 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London W1U 8AN, where you may look at a list of members’ names. February 2020

Designed by Turnbull Ripley February 2020

CONTACTSAlasdair SteeleT: 0131 222 9622M: 07808 479 333E: Alasdair.Steele@knightfrank.com Euan KellyT: 0131 222 9631M: 07770 016476E: Euan.Kelly@knighfrank.com

Rhu WishartT: 0131 322 3078M: 07966 393088E: Rhu.Wishart@knightfrank.com