The Barracks, Forthside

Stirling FK8 1QZ

Overview

  • Dominant modern leisure park
  • Located in Stirling, a regionally dominant retail and leisure destination which attracts a host of high profile national and international brands
  • Significant potential for reversion on 2018 rent reviews
  • Long income WAULT of 11.48 years to expiry and 8.36 years to breaks
  • 95% of the income comes from national covenants:  Vue Entertainment Limited, Nando's Chickenland Limited and The Restaurant Group (UK) Limited t/a Frankie & Benny's
  • The property is held on a Long Leasehold from Stirling Council for 125 years, expiring on 9th May 2132, at 5% of annual rents receivable
  • Offers are sought in excess of £5,300,000 (Five Million, Three Hundred Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Long Leasehold
  • This represents a net initial yield of 7.50%, after allowing for purchaser's costs of 6.12% based on Scotland's Land & Buildings Transaction Tax (LBTT)

Location

Stirling is strategically positioned in the heart of Scotland, with excellent commuter connections to Glasgow (42km) and Edinburgh (59km) via the M80 and M9 respectively. The city population is expected to grow by 9.17% by 2039 and has a primary catchment of 224,000 people within a 40-minute drive time.

  The University of Stirling, located on the north-eastern edge of the city, employs over 1,400 staff, with approximately 12,300 students.

Situation

The subject property is situated within the Forthside Quarter, between the city centre and out of town retail parks. Accessed via the new rail bridge immediately adjacent to the development, the scheme is within a 2-minute walk of Stirling Rail Station and a 5-minute walk of Thistle Shopping Centre and Stirling Bus Station.

Forthside is a newly established 40-acre, vibrant and sustainable city quarter, which occupies a prominent position beside the city centre. The area has been significantly redeveloped to provide a high quality mixed use environment.

Description

The property was constructed in 2008 and comprises a 29,607 sq ft modern leisure development, consisting of an 8-screen, 1,071-seat multiplex cinema, three restaurant units and one kiosk unit. The scheme benefits from excellent pedestrian links and connectivity within the city centre via the stunning Forthside Bridge, which also provides direct access to the city's main line train station and principal bus station.

The Barracks provides the only cinema and modern casual dining restaurants in the Stirling area, attracting the city's large affluent catchment population. The next alternative cinema and leisure destination is located over 15 miles to the south east of the subject property, in Falkirk.

Tenure

The property is held on a long leasehold from Stirling Council for 125 years, expiring on 9th May 2132, at 5% of annual rents receivable.

Tenancy

95% of the income comes from national covenants: Vue Entertainment Limited, Nando's Chickenland Limited and The Restaurant Group (UK) Limited t/a Frankie & Benny's.

  For full tenancy information please see the link below.



VAT

The property has been elected for VAT and therefore VAT will be payable on the purchase price. However it is assumed 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 £5,300,000 (Five Million, Three Hundred Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Long Leasehold. A purchase at this level would reflect a net initial yield of 7.50%, after allowing for purchaser's costs of 6.12% based on Scotland's Land & Buildings Transaction Tax (LBTT).

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NET INITIAL YIELD:
7.5%
PRICE:
£5,300,000
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