Location

The powerhouse of Scotland

Glasgow is regarded as the economic powerhouse of Scotland, generating £43 billion GVA in 2016. It is the UK's 3rd largest financial centre (Source: Invest Glasgow). More than 54,000 companies make their home in the Glasgow city region, supporting 844,000 jobs (Source: Invest Glasgow). Glasgow is home to a range of blue chip companies, major global organisations and international SMEs.

The city has an above average representation of employment within the financial services sector (Source: Promis). Companies represented in Glasgow include Santander, RBS, Clydesdale Bank and JP Morgan. Some of the biggest names in pharmaceuticals, research services, engineering and a range of global brands also call Glasgow home, including Glaxosmithkline and Lockheed Martin (Source:Invest Glasgow).

Employment in Glasgow is to increase as a consequence of the £1.13 billion Glasgow City Region City Deal, which aims to create thousands more new jobs, drive business innovation and growth and generate billions of pounds of private sector investment (Source: Glasgow City Region City Deal). Funding for this initiative started in 2015.

Glasgow's population is continuing to grow. Glasgow City had the highest population in 2017, out of all 32 council areas in Scotland. The greater Glasgow area accounts for more than 40% of Scotland's entire population. 70% of this population is of working age, highlighting Glasgow's relatively young population in comparison to the rest of the UK.

Glasgow is home to 5 Higher Education institutions, including the University of Glasgow (ranked 69th in the world), The University of Strathclyde (ranked 268th in the world) and Glasgow Caledonian University, as well as the Glasgow School of Art. Glasgow has the highest student population in the UK outside of London, with 87,290 students (Source: HESA).

Situation

A major UK retail destination

Buchanan Street is the prime retail street in Scotland and is widely regarded as the strongest retailing street outside of London. It is anchored by the 660,000 sq ft Buchanan Galleries to the north and the 540,000 sq ft St Enoch Centre to the south and forms the central part of Glasgow's 'Golden Z' of retail. It is the busiest prime high street in the UK, after Oxford Street in London, with an average footfall of over 6,500 people per hour. Glasgow receives more than 90 million shoppers per year and this is increasing thanks to the growing number of tourists and visitors in the city.

Glasgow's retail catchment is extensive and is formed not only of the immediate densely populated city centre but also a large proportion of the west of Scotland. There are over 2.2m people within a 45 minute drive of Glasgow city centre which creates a comparison spend of £2.56 billion, which is 2nd behind London in the UK (Source: CACI). Glasgow benefits from an extensive transport network, including train services across the UK, its own underground network and a range of bus services connecting Glasgow to all major Scottish cities.

Glasgow's city centre is to receive a budget of £115.5 million out of the £1.13 billion Glasgow City Region City Deal, with the specific aim of developing improved infrastructure, including the resurfacing of streets and pavements, improving underground facilities and reducing vehicle traffic (Source: Glasgow City Council). Retailers on the street include Apple, Hugo Boss, Massimo Dutti, Ted Baker, Levi's, Nike and Zara.

Prominent location in City Centre

120 Buchanan Street is located on the prime block of the street, with surrounding occupiers including Swatch, Scribbler, Jack Wills, Hobbs, The Ivy and All Saints.

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Description

The subject property comprises a retail unit arranged over ground and basement floors, from which the tenant trades from both. The unit forms part of a larger traditional category B listed building.

The upper floors are used as offices and are under separate ownership.

Accommodation

The subject property has been measured in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition). The Net Internal Area has been calculated as in the link below:

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Tenure

The property is held on a Heritable title (Scottish equivalent of English Freehold).

Tenancy

The property is let entirely to Diesel (London) Limited on a 25 year FRI lease, expiring 5th October 2022. The passing rent is £376,500 per annum (£311.47 per sq ft Zone A).

At the 2017 rent review an allowance of 2.5% was made for the 15 year assumed term within the lease. On re-letting the allowance will not apply.

Covenant Information

Further information can be found within the link below.

VAT

The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated the sale will be treated as a Transfer of a Going Concern (TOGC).

Planning

The property currently has planning consent for Class 1 (Shops).

Proposal

The property is being offered for £8,340,000 (Eight Million, Three Hundred and Forty Thousand Pounds Sterling) exclusive of VAT for the benefit of our client's interest.

A purchase at this level would reflect a net initial yield of 4.25%, after allowing for purchaser's costs of 6.18% based on Scotland's Land and Buildings Transactions Tax (LBTT).

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