the james watt, 80/92 cathcart street, greenock · 2019-01-10 · the james watt, 80/92 cathcart...
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The James Watt, 80/92 Cathcart Street, Greenock
Prime Public House Investment
The James Watt, 80/92 Cathcart Street, GreenockInvestment Summary
Greenock is the administrative centre for the Inverclyde area approximately 20 miles west of Glasgow.
The town is the focal point for the surrounding area and has a primary catchment population of 106,000 people.
The property is situated in the heart of the town centre, beside the local government buildings and the Oak Mall Shopping Centre.
The property is let to JD Wetherspoon on FRI terms until 30th March 2034, with a tenant only break option on 31st March 2029.
Net income of £163,962.50 per annum, with a rent review on 31st March 2019.
Absolute Ownership interest (Scottish equivalent of English freehold).
Offers in excess of £2,290,000 (Two Million, Two Hundred and Ninety Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership in the property.
A purchase at this price will reflect a net initial yield of 6.75% after allowing for purchaser’s costs of 5.87% based on Scotland’s Land and Buildings Transaction Tax (LBTT).
Greenock Scottish Leisure Market
The food and beverage sector is currently at the forefront of occupier market activity. The national restaurant and public house market operators are continuing to expand with city and town centres locations being primarily targeted. There is a plethora of operators that are expanding at present including Mitchells & Butlers, Greene King, Spirit Group, Marstons, Stonegate and Living Ventures, who are also being joined by emerging Scottish brands such as Brew Dog and Bar Soba.
Greenock is the main leisure and retail hub for the Inverclyde area. There is a general under provision of national operators within the town though with the JD Wetherspoon being one of the few national food and beverage operators within the town centre.
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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
Greenock
Perth
Berwick-upon-Tweed
Ashington
Coleraine
Blyth
DumfriesLongbenton Whitley Bay
Ballymena
Durham
Workington Redcar
Glenrothes
Kirkcaldy
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
Greenock is the administrative centre for the Inverclyde area and provides the main retail and leisure provision for the area.
The town is approximately 42 km (26 miles) west of Glasgow and 38 km (23.6 miles) north of Kilmarnock. The town benefits from good communication links, with the A8/M8 providing direct routes to Glasgow and the east; the A78 providing access to the south along the west coast and inland via the A71 to Kilmarnock. Greenock railway station offers a regular and direct service to Glasgow city centre with a journey time of just over 30 minutes.
Greenock has a population of approximately 45,500 people (SCROL) and a primary catchment of 106,000 people (PROMIS). The town is the largest settlement in the Inverclyde area and the catchment spend per capita of the population is in line with the PROMIS average.
The service sector accounts for 80% of total employment in Greenock, slightly above the Retail PROMIS average. Within this sector, ‘financial & business services’ accounts for 25% of total employment, slightly above the Retail PROMIS average. The manufacturing sector in Greenock accounts for 5% of total employment, slightly below the Retail PROMIS average. Major employers in the town include IBM, National Semi-Conductor, Amazon and EE.
RED NIGHTCLUB
< OAKMALL SHOPPING CENTRE
Situation
The James Watt, 80/92 Cathcart Street, Greenock
The property is situated within the heart of the town centre, at the junction of Cathcart Street and Cross Shore Street.
The subject is situated adjacent to main government buildings, the public library and the town’s main retail provision, Oak Mall shopping centre. The local job centre is directly adjacent to the subjects.
Description Accommodation & Tenancy
The subjects comprise an impressive, Category B listed former post office building. The property is arranged over ground, basement and two upper floors.
JD Wetherspoon have a lease over the whole building. The ground floor provides the bar, dining room, customer toilets and staff ancillary areas. The basement and upper floors are not currently in use as the building is undergoing refurbishment.
Tenancy
The property is let to JD Wetherspoon PLC on a Full Repairing and Insuring (FRI) lease for 35 years expiring on 30 March 2034. There is a tenant only break option on 31 March 2029. The current rent is £163,962.50 per annum, with the next rent review due on 31 March 2019.
The ground floor of the subject property have been measured on a gross internal area (GIA) basis in accordance with the RICS Code of Measuring Practice (6th Edition), and approximate areas are as follows:
Floor sq m sq ft
Second floor* 315.30 3,394
First floor* 307.70 3,312
Ground floor 802.30 8,636
Basement & garage* 975.80 10,504
Total 2,401.1 25,846
*Access to the upper floors, basement and garage was restricted, due to current works that the tenant is undertaking, at the time of inspection and these areas should be used as a guide only.
Tenant Covenant
J D Wetherspoon is a leading national public house operator with over 1,000 pubs across the UK and Ireland. The company was founded in 1979 and is well known for its low prices, long opening hours and no music policy.
J D Wetherspoon are rated by Experian as “very low risk”. For the financial year to 27th July 2014, the company had a turnover of £1,409,333,000, a pre-tax profit of £78,365,000 and a net worth of £200,330,000. This covenant provides good security of income.
Financial Year Ended
Turnover Pre-tax Profit Net Worth
29 July 2012 £1,197,129,000 £58,882,000 £152,708,000
28 July 2013 £1,280,929,000 £57,143,000 £194,749,000
27 July 2014 £1,409,333,000 £78,365,000 £200,330,000
The James Watt, 80/92 Cathcart Street, Greenock
Tenure VAT
Absolute Ownership (Scottish equivalent of English Freehold).
EPC
The Energy performance rating for the property is G with CO2 emissions of 126. A full Energy Performance Certificate (EPC) can be provided on request.
The property has been elected for VAT and therefore VAT will be elected on the purchase price. However it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC).
LAND REGISTEROF SCOTLAND
Officerʼs ID / Date
NORDNANCE SURVEY
NATIONAL GRID REFERENCESurvey Scale
C
REN9468370m
1/1250 NS2875NW NS2876SW
2585
TITLE NUMBER
9/11/1999
CROWN COPYRIGHT © - Produced from REGISTERS DIRECT on at with the authority of Ordnance Survey pursuant to section 47 of the Copyright, Designs and PatentsAct 1988. Unless that act provides a relevant exception to copyright, the copy must not be copied without the prior permission of the copyright owner. This copy has no evidential status.
28/01/2010 14:06
We are instructed to seek offers in excess of £2,290,000 (Two Million, Two Hundred and Ninety Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership in the property. A purchase at this price, after allowing for purchaser’s costs of 5.87% based on LBTT, will reflect a net initial yield of 6.75%.
For further information please contact: Sarah Stewart T: +44 (0)131 226 8736 E: [email protected]
Stephen Bibby T: +44 (0)131 226 8738 E: [email protected]
Stuart Moncur T: +44 (0) 131 226 8754 E: [email protected]
Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG
MISREPRESENTATION ACT
Cushman and Wakefield LLP 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 satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Cushman and Wakefield LLP has any authority to make or give representation or warranty whatever in relation to this property. July 2015.
Proposal