attractive, high yielding retail investment

13-15 & 19-21 Broad Street | Fraserburgh | Aberdeenshire | AB43 9AE

£545,000OFFERS IN EXCESS OF

Attractive, High Yielding Retail Investment

SUMMARY

Prime High Street investment

Two units let to the secure covenants of Sportswift Ltd t/aCard Factory and Mackays Stores Ltd t/a M & Co

Total rent of £45,500 per annum

Card Factory lease recently extended

Both units let on FRI leases

Offers in excess of £545,000, subject to contract

Attractive net initial yield of 8%

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LOCATION

Fraserburgh is located approximately 40 miles (60 km) north ofAberdeen and 17 miles (25 km) north of Peterhead. It is atraditional fishing town, is the largest shellfish port in Scotland andone of the largest in Europe. The town is the second largest inAberdeenshire with a population of circa 13,000 and an economybased on fishing and engineering. It is also a key centre forcommercial and public service facilities.

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SITUATION

The property is situated on the north side of Broad Street, which isthe principal thoroughfare in Fraserburgh. There is retailing on bothsides of the street and the subjects occupy a 100% prime pitchwithin the Town Centre.

Nearby occupiers include Santander, Boots, Iceland and Superdrug.

DESCRIPTION

The subjects comprise two adjoining retail units.

No. 13-15 is a purpose built unit over ground and first floors with atraditional ashlared granite façade set below a pitched slate roof.There is a single storey extension to the rear with flat felt roof. Theunit has ground floor open plan sales accommodation with ancillarystorage at first floor.

No 19-21 is of more traditional granite stone construction with apitched slate roof. The tenant trades over ground floor only and the1st and 2nd floors comprise residential flats which do not form partof the sale.

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ACCOMMODATION

The units provide the following accommodation measured on a netinternal basis in accordance with RICS Code of Measuring Practice(6th Edition).

13-15 Broad Street

Gross Frontage 10.08m (33ft 1in)

Net Frontage 9.27m (30ft 5in)

Ground Floor 239.22 sq m (2,575 sq ft)

First Floor 83.61 sq m ( 900 sq ft)

Total NIA 322.83 sq m (3,475 sq ft)

ITZA 140.28 sq m (1,510 sq ft)

19 Broad Street

Gross Frontage 6.52m (21ft 5in)

Net Frontage 5.56m (18ft 3in)

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101.82sq m (1,096 sq ft)

ITZA 62.34sq m ( 671 sq ft)

Ground Floor

TENURE

Heritable (Scottish equivalent of English freehold).

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TENANCY

The properties are held on separate occupational leases as follows:-

13-15 Broad Street

Let on a Full Repairing and Insuring lease to Mackays Stores Ltd(trading as M & Co) on a 5 year lease extension from 24th June2017 until 23rd June 2022. The current rent is £30,000 per annum,equivalent to £18.87 per sq ft. The tenant has been in occupation ofthe unit since 1988.

19-21 Broad Street

Let on a Full Repairing and Insuring lease to Sportswift Ltd (tradingas Card Factory) originally from 18th August 2014 until 18th August2019. The lease has recently been extended and now expires on17th August 2024. The current rent is £13,000 per annum and thiswill increase to £15,500 per annum with effect from 17th February2020 and to £16,000 per annum on 18th August 2021. The tenantcurrently pays a concessionary rent and the landlord will make upthe shortfall in rent so that the purchaser will receive £15,500 perannum from the date of purchase.

Therefore, an investor will benefit from a total income of £45,500per annum.

COVENANT

The companies have reported the following trading figures;

Sportswift Ltd (Co No 03493972)

31st Jan 2017 31st Jan 2016

Turnover £379,540,000 £362,226,000

Pre-Tax Profit £ 81,718,000 £ 92,210,000

Shareholders’Funds £ 63,661,000 £ 83,747,000

Card Factory are the leading specialist retailer of greetings cards,gift dressings and party products in the UK and now have over 850stores in both the UK and Ireland, with new stores opening everyyear. For further information visit www.cardfactory.co.uk.

Mackays Stores Ltd (Co No SC036368)

24th Feb 2017 24th Feb 2016

Turnover £165,611,000 £163,177,000

Pre-Tax Profit £ 1,100,000 (£ 355,000)

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Shareholders’ Funds £ 63,661,000 £ 83,747,000

Mackays Stores Ltd is part of the Mackays Stores Group. The firstMackays store opened 50 years ago and the current chain hasgrown organically from a small family business of just 6 stores toalmost 300. Between 2005 and 2007, the store portfolio wasexpanded and upgraded, and Mackays successfully re-branded tothe more contemporary M&Co fascia.

They currently employ more than 3,900 staff, with 3,500 of thosebased in-store and the remainder in their Inchinnan Head Office(beside Glasgow Airport), or in the London Buying Office. M&Co isknown for its family culture, which nurtures some extremely loyalcustomers. In the Sunday Times “Best Companies” survey in 2017they were ranked 14th best in “Big Company to work for in the UK”.

In a recent press release Mackays Stores Group confirmed a rise inturnover and pre-tax profit to the year end February 2018.

http://www.heraldscotland.com/business_hq/16683961.mco-owner-achieves-profit-rise-as-sales-grow/

VAT

The property has been elected for VAT. It is anticipated that thesale will be treated as a Transfer of a Going Concern (TOGC)

http://www.cardfactory.co.uk

PROPOSAL

We are instructed to seek offers in excess of £545,000 (Five Hundred and Forty Five Thousand Pounds), subject to contract, which reflects a net initial yield of 8.00%, after allowing for standard purchasers costs of 4.51%.

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INVESTMENT CONSIDERATIONS

1. Opportunity to acquire two units let to well-establishedcovenants;

2. Let off market rents with reversionary rent on M & Co unit;

3. Situated within a prime position in the town;

4. M & Co been in occupation since 1988;

5. Attractive lot size and initial yield.

PRP Solicitors +44 (0) 141 331 4510

David Morris [email protected]

Singer Vielle +44 (0) 207 935 7200

Graham Waddell [email protected] +44 (0) 141221 4545

Douglas Wilson [email protected] +44 (0) 141 370 0284

Neil Singer [email protected] +44 (0) 203 478 9120

Dale Henry [email protected] +44 (0) 203 701 1356

Ed Jeffs [email protected] +44 (0) 203 701 1353

Joint Agent – WBF

Gavin Anderson [email protected] +44 (0) 141 221 6161


mailto:[email protected]


mailto:[email protected]@singervielle.co.uk





SUBJECT TO CONTRACT & EXCLUSIVE OF VAT

Misrepresentation Act 1967

Singer Vielle and WBF for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:

1. 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

2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but

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

each of them.

3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.

4. All maps are for identification purposes only and should not be relied upon for accuracy.

5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.

Finance Act 1989

Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

Property Misdescriptions Act 1991

These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment. Concerning the Properties listed and/or

appearing on the Site:

1. Under no circumstances shall we be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Properties on the

Site.

2. Under no circumstances shall we be liable for any errors or incompleteness of the information relating to any Property listed on this Site or if any Property has been withdrawn from

sale or lease nor shall we be responsible for any inaccurate dimensions of any Properties or price listed.

3. Our website service permits you to enquire about and to purchase or lease Properties appearing on or listed on this Site. Such

enquiries, purchase or leasing can only be made and permitted strictly subject to the terms and conditions set out below.

4. We do not accept responsibility or liability for the completeness or accuracy of information appearing on this Site which is provided by the Vendors or Lessors of the Property

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attractive, high yielding retail investment

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