109 Princes Street

Edinburgh EH2 3AA

Overview

  • The property comprises an attractive Grade B Listed building, arranged over ground and basement levels
  • Levi's are currently undertaking a substantial re-fit of the store and replacing the shop front
  • Let to Levi Strauss (UK) Limited until August 2025, following a recent lease extension
  • Strong potential for rental growth
  • Current rental income of £230,000 per annum (£216 Zone A per sq ft)
  • Absolute Ownership (Scottish equivalent of English Freehold)
  • Offers are invited in excess of £4,130,000 (Four Million, One Hundred and Thirty Thousand Pounds Sterling) for the Absolute Ownership
  • An offer at this level would reflect a Net Initial Yield of 5.25%, after allowing for purchaser's costs of 6.06% based on Scotland's Land and Buildings Transaction Tax (LBTT)

Location

PRINCES STREET

Princes Street is the prime retailing thoroughfare, attracting an excellent blend of retailers.
Major retailers present: House of Fraser, Debenhams, Marks & Spencer, Next, H&M, Top Shop/Top Man, Primark
Prime Zone A rates: £240 per sq ft

GEORGE STREET

George Street provides a unique blend of retail and leisure uses. In recent years the street has become known for being home to a number of high quality retailers, along with trendy bars and restaurants.
Major retailers present: Jaeger, Anthropologie, Hollister, Hobbs, The White Company, White Stuff, Space NK, LK Bennett, Aspinal of London, Kuoni
Prime Zone A rates: £200 per sq ft

MULTREES WALK

Anchored by Scotland's only Harvey Nichols store, Multrees Walk is home to up-market and luxury brands.
Major retailers present: Harvey Nichols, Louis Vuitton, Emporio Armani, Mulberry, Replay, Reiss, Tesla

EVOLVING CITY

As the catchment spend available is increasing, the city centre is evolving as a retail destination. A significant part of this evolution is the £850 million redevelopment of the St James Centre. The new centre will deliver 1.7 million sq ft of retail, hotel, leisure and residential accommodation. The development is due to complete post 2020.
The new St James Centre will heighten Edinburgh's appeal as a major UK retail destination.

RENTAL GROWTH

In the last 12 months there has been a significant increase in activity on Princes Street, with eight new lettings in 2016. Footlocker and Ann Summers have relocated and upsized on the street. This increase in demand for space on Princes Street has seen rental levels grow up to 20%, with further upward pressure. There is a dearth of space available in Edinburgh city centre, which has shifted the balance of power in favour of the landlord. Consequently, relatively low rent free periods are being negotiated.
Further information can be found in the marketing brochure.

Situation

The property occupies a prominent position within the dominant fashion pitch on Princes Street, between the junctions with Frederick and Castle Streets, both of which link to George Street.

Description

109 Princes Street comprises an attractive Grade B Listed building, arranged over ground and basement levels. Levi Strauss trade from the well configured ground floor and use the basement for storage.

REFURBISHMENT

Levi Strauss are currently carrying out a comprehensive refurbishment of the unit, including the installation of a new shop front and high quality sales floor fit out.


Tenure

The property is held Absolute Ownership (Scottish equivalent of English freehold).

Tenancy

The entire property is let to Levi Strauss (UK) Limited on a 10 year FRI lease from 9 August 2015 until 8 August 2025. The current rent is £230,000 per annum (£216 zone A per sq ft). There is a rent review on 9 August 2020. The tenant has been in occupation since August 2005.

Covenant Information

Levi Strauss (UK) Limited
Levi Strauss & Co is a global clothing company with an international portfolio of brands including Levi's, Dockers, dENiZEN and Signature by Levi Strauss & Co. Levi Strauss & Co has over 500 stores across the globe, and in the UK Levi has over 40 stores and concessions.

Levi Strauss & Co (00892419) has an Experian rating of 100, which represents Very Low Risk. The table below sets out recent account information.


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).

EPC

A full EPC can be provided upon request.

Proposal

We are instructed to seek offers in excess of £4,130,000 (Four Million, One Hundred and Thirty Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership. A purchase at this level would reflect a net initial yield of 5.25% after allowing for purchaser's costs of 6.06% based on Scotland's Land and Buildings Transaction Tax (LBTT).

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NET INITIAL YIELD:
5.25%
PRICE:
£4,130,000
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