Aberdeen is Scotland's third largest city, and the administrative, economic and principal retail centre of the North East. Aberdeen is well-known for expertise in the oil and gas industry. The city is diversifying these skills into the renewable energy sector as well as building on tourism and the life sciences sector. All-Energy, the UK's largest renewable energy exhibition and conference, takes place in Aberdeen each year.
Major employers in the city include BP, The Wood Group, First UK Bus Services, Lloyds Registers and Aberdeen Standard Investments, who following a merger now provides an enlarged company with approximately £583 billion of assets under management.
The city also boasts a high student population of approximately 29,000 people, served by the prestigious University of Aberdeen and Robert Gordon University.
Aberdeen City Council, Aberdeenshire Council and Opportunity North East have agreed a City Region Deal with the UK and Scottish governments. The City Region Deal is valued to be worth £826.2 million over the next ten years. This funding will deliver significant digital and physical infrastructure improvements across the region, including installation of world class affordable ultrafast internet, creation of two innovation hubs, building on the existing life sciences, food, drink and agriculture sectors, and an oil and gas technology centre. In addition to the ongoing major infrastructure investment already underway, the new city bypass known as the Aberdeen Western Peripheral Route is due to complete in winter 2017, which will ease congestion in the city centre. Further investment in the city includes the Aberdeen Exhibition and Conference Centre (opening 2019) and Aberdeen Airport expansion, where the first stage opened in May 2017.
There is now free wi-fi available in 30 public buildings across Aberdeen city centre, which is furthering Aberdeen's connectivity and transformation into a digital capital.
Aberdeenshire attracts annual tourist numbers of over 1.3 million and an annual spend of £421 million (Visit Scotland). This is due to the abundance of attractions available including 55 golf courses, 8 distilleries, 300 castles and 10 key festivals (Visit Aberdeenshire).
The subjects comprise three retail units within a larger 5-storey building. The retail units are formed over ground, basement and lower basement floors. The upper floors form a hotel operated by Travelodge and the principal access is via their Bridge Street reception. For the avoidance of doubt, the hotel is under separate ownership and does not form part of the property for sale.
Millets, situated mid terrace, trade from ground and basement floors with ancillary storage on lower basement.
Boots, also situated mid terrace, trade from ground floor only and operate a pharmacy. Staff and stock rooms are located in the basement with the lower basement used as a plant room.
Barclays Bank, situated on the corner, benefits from dual frontage to both Union Street and Bridge Street.
The units have been measured on a Net Internal Area (NIA) basis in accordance with the RICS Code of Measuring Practice (Sixth Edition) and the approximate areas are available in the link below.
The property is held Absolute Ownership (Scottish equivalent of English freehold).
The subject property has a WAULT of c. 5.80 years to expiry and c. 3.55 years to breaks.
Barclays Bank plc is a British multinational banking and financial services company providing personal and corporate banking services to businesses. Barclays is a universal bank with operations in retail, wholesale and investment banking, as well as wealth management, mortgage lending and credit cards.
Barclays Bank plc has an Experian rating of 92, reflecting a Very Low Risk.
Boots UK Limited is the UK's leading pharmacy-led health and beauty retailer. Boots has over 2,500 stores in the UK, ranging from local community pharmacies to large destination health and beauty stores.
Boots UK Limited has an Experian rating of 100, reflecting a Very Low Risk.
Blacks Outdoor Retail Limited is a specialist in outdoor footwear, apparel and equipment. The company acquired Millets in 2009, who now have 97 stores nationwide.
Blacks Outdoor Retail Limited has an Experian rating of 49, reflecting an Above Average Risk.
The table below sets out the tenants' recent account information.
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).
We are instructed to seek offers in excess of £3,850,000 (Three Million, Eight Hundred and Fifty Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership (Scottish Equivalent of English Freehold) interest in the subject property. A purchase at this level would reflect a Net Initial Yield of 9.50% after allowing for purchaser's costs of 6.05% based on Scotland's Land and Buildings Transaction Tax (LBTT).