111 PRINCES STREET EDINBURGH - PRIME RETAIL INVESTMENT - Cushman & Wakefield
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111 PRINCES
STREET
EDINBURGH
PRIME RETAIL INVESTMENT
INVESTMENT SUMMARY
Edinburgh is Scotland’s Edinburgh has a Strong occupier
capital city and catchment spend of demand and
Europe’s fourth largest
financial centre £2.56BN increasing prime
rental tone
Let to
100% Prime Current income of
retail opportunity
until January 2025 £528,000PA
Absolute
Ownership
Offers in excess of 5.25% NIY
(Scottish equivalent
£9,470,000 after allowing for
purchaser’s costs
of English freehold)
2 Cushman & Wakefield 111 Princes Street, Edinburgh
EDINBURGH
IS SCOTLAND’S 486K
CAPITAL CITY
& THE SEAT OF Population of 486,000,
predicted to grow to over
SCOTLAND’S 600,000 people by 2033
GOVERNMENT
4M
VISITORS
PER YEAR
Tourist expenditure
£334 per visitor
PEOPPL
12M
1.6M PER YEAR
Regional catchment
SHOT Princes Street had
the highest footfall
of 1.6M people in Edinburgh
4 Cushman & Wakefield 111 Princes Street, Edinburgh
51% The 2nd most
tech savvy +4M
city in the UK
51% of Edinburgh’s population according to
hold a degree or professional level Google eTown UNESCO World Heritage Site
qualification, providing a highly Awards attracting over 4M visitors per year
educated population
Most visited tourist
destination outside
4
UNIVERSITIES
of London Make Edinburgh the most popular
destination for overseas students
wishing to study at UK universities,
after London
37%
37% more affluent achievers
than the Scottish average
Cushman & Wakefield 111 Princes Street, Edinburgh 5
EDINBURGH IS ONE
OF THE STRONGEST
RETAILING CENTRES IN
THE UK, DOMINATING
ITS CATCHMENT OF
111
PRINCES STREET
Jenners
1.6M PEOPLE
WAVERLEY
MALL
Princes Street
George Street
Lothian Road
Tram line
Waverley Station
PRINCES STREET GEORGE STREET MULTREES WALK
Princes Street is the prime retailing thoroughfare, George Street provides a unique blend of retail and Anchored by Scotland’s only Harvey Nichols
attracting an excellent blend of retailers. leisure uses. In recent years the street has become store, Multrees Walk is home to up-market
known for being home to a number of high quality and luxury brands.
Major retailers present: House of Fraser, retailers, along with trendy bars and restaurants.
Debenhams, Marks & Spencer, Next, H&M, Major retailers present: Harvey Nichols,
Top Shop/Top Man, Primark Major retailers present: Jaeger, Anthropologie, Louis Vuitton, Emporio Armani, Mulberry,
Hollister, Hobbs, The White Company, White Stuff, Replay, Reiss, Tesla
Prime Zone A rates: £240 per sq ft Space NK, LK Bennett, Aspinal of London, Kuoni
Prime Zone A rates: £200 per sq ft
8 Cushman & Wakefield 111 Princes Street, Edinburgh
EVOLVING RENTAL GROWTH
CITY
As the catchment spend available is increasing, In the last 12 months there has been a significant increase in activity on Princes Street with eight new
the city centre is evolving as a retail destination. lettings in 2016. Footlocker and Ann Summers have relocated and upsized on the street. This increase in
A significant part of this evolution is the demand for space on Princes Street has seen rental levels grow up to 20%, with further upward pressure.
£850 million redevelopment of the St James There is a dearth of space available in Edinburgh city centre which has shifted the balance of power in
Centre. The new centre will deliver 1.7 million favour of the landlord. We have also seen relatively low rent free periods being negotiated and in most cases
sq ft of retail, hotel, leisure and residential straight ten year leases. A selection of recent transactions are noted below.
accommodation. The development is due to
complete post 2020.
PRINCES STREET TENANT ZONE A RATE COMMENT
The new St James Centre will heighten
10 year lease, break option year 5
Edinburgh’s appeal as a major UK retail 10/15 Foot Locker £199
New prime rental tone for this parade
destination.
42a Smiggle £248 10 year lease
87 Ann Summers £247 10 year lease
NEW ENTRANTS
89 Burger King £52 (GIA) 20 year lease, break option year 15
94 Kiko £284 10 year lease
20 year lease
97a/98 Chisholm Hunter £174 High global rent relative to ground
floor footprint
15 year lease
119 H Samuel £221
New prime rental tone for this parade
119 Card Factory £160 5 year lease
Cushman & Wakefield 111 Princes Street, Edinburgh 9
EWELLER
S
LE CREUSET
BADGER B CO
PRETTY GREEN
ETEAKET
MENSWEAR
UNDER OFFER
TACO MUZMA
PRINCES STREET
SITUATION
The subject block is 100% prime and accommodates some of the
best brands on the street including Debenhams, Boots, Zara and
Next. Recent additions to this pitch include Vodafone and Swiss
watch brand Swatch.
10 Cushman & Wakefield 111 Princes Street, EdinburghDESCRIPTION
An attractive Grade B Listed building arranged over ground and basement,
first and second levels. River Island trades from both ground and basement
levels. The subjects have been measured on a net internal basis in accordance
with the RICS Code of Measuring Practice (6th Edition) and approximate areas
are as follows:
AREA SQ M SQ FT
Ground floor 390.56 4,204
Basement 377.46 4,063
First 175.03 1,884
Second 193.24 2,080
Total area 1,133.79 12,204
ITZA 233.56 2,514
Cushman & Wakefield 111 Princes Street, Edinburgh 11TENANCY
The entire property is let to River Island until 26th January 2025, the lease was recently
extended. The rent is £528,000 per annum, reflecting a Zone A of £210 per sq ft. The rent
reviews are on 28th November 2017 and 28th November 2022.
TENANT COVENANT
River Island is one of the most recognised high street fashion brands in the United Kingdom,
with 248 stores in the UK and a further 76 in other global markets including, Europe, the
Middle East, Africa and South America.
River Island Clothing Co Limited (00636095) is rated by Experian as ‘very low risk’ with a
score of 98.
DATE TURNOVER (£s) PRE-TAX PROFIT (£s)’S) NET WORTH (£s)
29/12/2012 739,700,000 93,300,000 268,700,000
28/12/2013 809,500,000 86,100,000 242,700,000
27/12/2014 890,400,000 145,800,000 279,600,000
12 Cushman & Wakefield 111 Princes Street, EdinburghTENURE The property is held Absolute Ownership (Scottish equivalent of English freehold). EPC The rating of the unit is E and the CO2 emissions are 67.27 kgCO2 per m2 per year. A full EPC can be provided upon request. 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). Cushman & Wakefield 111 Princes Street, Edinburgh 13
PROPOSAL We are instructed to seek offers in excess of £9,470,000 (Nine Million Four Hundred & Seventy 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 6.20% based on Scotland’s Land and Buildings Transaction Tax (LBTT). FOR VIEWINGS & ENQUIRIES: Stephen Bibby Sam Waterworth Tel: +44 (0) 131 222 4523 Tel: +44 (0) 207 152 5149 Email: stephen.bibby@cushwake.com Email: sam.waterworth@cushwake.com Sarah Stewart Erin Mills Tel: +44 (0) 131 222 4524 Tel: +44 (0) 131 222 4564 Email: sarah.stewart@cushwake.com Email: erin.mills@cushwake.com MISREPRESENTATION ACT Cushman and Wakefield LLP (and any joint agent appointed) on their own behalf and for vendors or lessors of this property, whose agents they are, give notice that: (i) These particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract and must not be relied upon as statements or representations of fact. (ii) No person in the employment of the agent(s) has any authority to make or give representation or warranty whatever in relation to this property. (iii) the property is offered subject to contract and unless otherwise stated all rents and outgoings are stated exclusive of VAT (iv) Floor areas, measurements or distances given are approximate (v) Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. (vi) Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. February 2017.
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