18-26 ARGYLE STREET GLASGOW - PRIME RETAIL INVESTMENT WITH REDEVELOPMENT POTENTIAL - Sheridan Property Consultants
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18-26
ARGYLE STREET
GLASGOW
PR IM E R ETAIL INVE S TM E NT WITH R E D E VE LO PM E NT POTE NTIAL
INVESTMENT SUMMARY Glasgow is one of Europe’s most exciting and vibrant cities and the largest in Scotland The city is ranked as the largest and most successful retailing destination in the UK outside of London (CACI) Argyle Street is the best mainstream retailing pitch in Glasgow with estimated footfall of 20 million people per year generated by the redeveloped St Enoch Centre and attractive retailing brands such as Marks & Spencer (owner occupied), Sports Direct (owner occupied) Debenhams, H&M, Primark (owner occupied) and TK Maxx Argyle Street forms part of Glasgow’s famous Golden Z retailing pitch I deally located in proximity to Buchanan Street and the vibrant and resurgent Merchant City umerous exciting developments are either underway or planned for N the surrounding vicinity Offers a variety of value add asset management initiatives that include exploring the amalgamation of the units, obtaining vacant possession for owner occupation, applying for a change of use to create a licensed leisure unit, new lettings and lease re-gears Let to River Island and Redbird Scot Limited t/a Gobstopper Candy Total passing rent of £497,000 per annum River Island has a Dun & Bradstreet covenant of 5A1 River Island have traded successfully from their unit since 2003 Our clients are seeking offers in excess of £4,000,000 (Four Million Pounds Sterling) exclusive of VAT which reflects a net initial yield of 11.66% based on purchasers costs of 6.51% 18-26 ARGYLE STREET. GLASGOW 2
LOCATION
With over half a million square metres of
retail space, Glasgow is the largest UK
shopping destination outside London. It is Cowcaddens Road
also the most successful, ranking 2nd in Glasgow Caledonian
CACI’s UK Retail Ranking and placing it in University
the top 20 super league of major European Buchanan
Bus Station
shopping destinations by commercial Renfrew Street Killermont Street
expenditure. Within a 30 minute drive The Glasgow Royal
Concert Hall
BUCHANAN
time from Glasgow, the comparison goods GALLERIES
spend is £4.85 billion per annum whilst SAUCHIEHALL STREET
Glasgow is the largest city in Scotland, convenience expenditure is £5.23 billion
Cathedral Street
the commercial and industrial capital of per annum. The city is ranked as having the Bath Street
N Hanover Street
the country and the administrative centre highest catchment spend available out of STRATHCLYDE
Hanover Ct
UNIVERSITY
for the West of Scotland. The city has an the top UK retailing centres. Queen
John Street
Street
urban population of approximately 600,000
W Campbell Street
Blythswood Street
Wellington Street
Buchanan
people and a catchment population of over Street
Hope Street
2.89 million people within a 40 minute West George Street
BUCHANAN STREET
drive, making Glasgow the third largest GEORGE
SQUARE
GLASGOW CITY
CHAMBERS
urban centre in the UK. The city benefits St Vincent Street
from two main train stations; Central Cochrane Street
Railway Station and Queen Street Railway
Ingram Street
station both of which provide regular Gordon Street
GALLERY OF
MODERN ART
services to London and link to the wider
Hutcheson Street
Scottish Railway Network.
Glassford Street
Waterloo Street
THE GRID
PRINCES
Queens Street
Glasgow is Scotland’s main centre of DEVELOPMENT SITE
Unio
SQUARE
Cadogan Street
Miller Street
employment and an economic powerhouse,
n Str
CANDLERIGGS
Glasgow QUARTER
contributing £18 billion to the GDP each Holm Street Central
eet
DEVELOPMENT SITE
year. There are 1.2 million working age
ARGYLE STREET
people within a 45 minute commute ARG YLE STR EET
of the city and 2 million within an hour.
New Wynd
Argyle Street
treet
Stockwell Street
Jamaica Street
The city is home to an impressive list of St Enoch
son S
et
blue chip companies and major global
York Stre
Robert
organisations across numerous sectors ATLANTIC SQUARE
DEVELOPMENT SITE
Osborne Street
including Santander, Morgan Stanley, The Fox S
treet Howard Street
Student Loans Company, KPMG, Ministry of Broomielaw
CUSTOM HOUSE
DEVELOPMENT SITE
e
egat
Defence, BT, Aggreko, Scottish Power and Brid
Scottish & Southern Energy.
RIVER CLYDE
18-26 ARGYLE STREET. GLASGOW 3
Clyde Pl
RETAILING IN GLASGOW
IDEALLY LOCATED CLOSE TO
BUCHANAN STREET AND THE
RESURGENT MERCHANT CITY
Glasgow is the UK’s largest and most The St Enoch Shopping Centre
successful retailing destination outside (opposite the subject) underwent a
of London. It has an extended catchment £150 million refurbishment in 2010 and
population of 2.89 million people and has subsequently repositioned itself
an estimated shopping population as a young fashion and family retailing
of 680,000 people ranking 2nd only destination. Unlike Buchanan Street,
to London’s West End. The city has a retailing on Argyle Street is dominated
catchment spend of over £10 million, the by large unit occupiers such as Primark,
highest of the top UK retailing sectors. Marks & Spencer, TK Maxx, River Island,
Strong catchment spend is serviced by H&M, Topshop and Superdry all of whom
an attractive and prosperous city centre. generate high levels of footfall.
Glasgow’s retailing core is based around
Sauchiehall Street, Buchanan Street and Argyle Street has seen significant recent
Argyle Street which combine to form tenant activity. This includes Topshop
the famous Golden Z retail pitch. This is upsizing into part of the neighbouring
supported by shopping centres, HMV unit, Sports Direct buying 26/32
the Buchanan Galleries, the St Enoch Argyle Street for owner occupation,
Centre (opposite the subject premises) Nationwide taking a new lease over the
and Princes Square. former Officers Club at 92/96 Argyle
Street and both Clarks and Schuh
Argyle Street is one of the strongest recently extending their leases at 104 &
retailing pitches within Glasgow. 114 Argyle Street respectively. The ability
The street has experienced a recent of Argyle Street to satisfy retailer demand
resurgence and as a result has firmly for “big box” space has been a key reason
established its position as the heart of for its success. Recent “big box” entrants
Glasgow’s Southern Quarter; footfall to the street include TK Maxx, Superdry
figures for the street are estimated to be and H&M. Primark and Marks & Spencer
20 million visitors per year. owner occupy their stores.
18-26 ARGYLE STREET. GLASGOW 4
TO GLASGOW AIRPORT TO EDINBURGH & CARLISLE
M8
SAUCHIEHALL STREET
BUCHANAN GALLERIES
Queen Street
BUCHANAN STREET
Glasgow Central
PRINCES SQUARE
MERCHANT CITY
HOTEL DEVELOPMENT
• 250 bed Premier Inn Hotel St Enoch
• Opens Summer 2020
ARGYLE STREET
CANDLERIGGS
DEVELOPMENT
• 850,000 sq ft of residential,
CUSTOM HOUSE
student, hotel and
DEVELOPMENT
ST ENOCH commercial space
• 294 bed Clayton Hotel • Planning approved
• 162 bed Adegio Apart Hotel Argyle Street
• Under construction
ARGYLE STREET FORMS PART OF GLASGOW’S FAMOUS GOLDEN Z RETAILING PITCH
18-26 ARGYLE STREET. GLASGOW 5
SITUATION
The subject property occupies a prominent corner
position on the north side of Argyle Street, a prime
pedestrianised pitch between Miller Street and
Virginia Street and opposite the redeveloped
St Enoch Centre. Neighbouring occupiers include
Next, Debenhams, Marks & Spencer, Superdry,
Primark, Footlocker, Barclays, Topshop and
TK Maxx.
Hutcheson Street
Glassford Street
Vir gin ia Stree t
Argyl Street
Stockwell Street
Dunlop Street
18-26 ARGYLE STREET. GLASGOW 6
DESCRIPTION EAST END RESURGENCE
The subject property comprises two adjacent retail units. River Island is arranged over It is an exciting time for Glasgow’s East End with huge levels of investment helping to promote
ground and lower ground floors, and Gobstopper Candy over ground floor only. The units are positive change, growth and vibrancy in this historic district of the city. The East End has undergone
contained within a five storey building of brick construction under a pitched and slated roof. a resurgence following significant investment made in conjunction with the 2014 Commonwealth
Games. The momentum created continues and below is a sample of the developments planned.
Candleriggs Quarter St Enoch Centre Collegelands Developments
(above)
Construction has started on a Collegelands is part of a
The East End’s new £40m leisure development at one £200m development project
Candleriggs Quarter is the of Glasgow’s largest shopping that connects Glasgow’s
UK’s biggest city centre centres. The redevelopment will Merchant City entertainment
development outside of add 30,000 sq ft to the centre and district with the East End. The
London and has consent include a cinema, retail outlets and development comprises 588
for 850,000 sq ft of restaurants. It is scheduled to be student study bedrooms.
residential, student, hotel opened by the summer of 2020.
and commercial space. Drum
Property Group formed a
joint venture with Stamford New Hotel Developments Airport Tram-Train
Property Investments earlier New proposals include a 250 bed The Glasgow airport tram-train
this year to take this exciting hotel with a skybar, ground floor will bring millions of additional
project forward. restaurant, bakery, penthouse passengers into Central Station,
suites and a gym, and situated just located just minutes from
off St Enoch Square. Argyle Street.
18-26 ARGYLE STREET. GLASGOW 7
ACCOMMODATION
Below are the net internal floor areas as measured by Plowman
Craven.
20-26 Argyle Street - River Island
Floor sq ft sq m
Ground 8,654 804.2
Basement Sales 7,756 720.6
Basement Storage 4,486 416.8
Total 20,896 1,941.6
The reduced area (ITZA) is 3,534 sq ft (328.3 sq m).
18 Argyle Street - Gobstopper Candy
Floor sq ft sq m
Ground 1,856 172.4
TENANCY TENURE
The reduced area (ITZA) is 1,111 sq ft (103.22 sq m).
18 Argyle Street is let to Redbird Scot Limited trading as The property is held on a heritable title (Scottish equivalent
Gobstopper Candy on a full repairing and insuring lease from of English freehold).
29 September 2018 expiring 29 March 2020 at a passing rent
of £72,000 per annum (£64.80/per sq ft Zone A). On lease
expiry the lease will continue to run on the same terms until
terminated by either party on three months’ prior written COVENANT
notice.
River Island Clothing Company Limited (00636095) has
20-26 Argyle Street is let to River Island Clothing Company a Dun & Bradstreet rating of 5A1. For the year ending
Limited on a full repairing and insuring lease from 31 December 2017 the company reported a Tangible Net
28 November 2003 and which now expires on 28 September Worth in excess of £581,000,000, Sales Turnover in excess
2023, at a passing rent of £425,000 per annum of £901,000,000 and Net Profit in excess of £74,000,000.
(£120.26/per sq ft Zone A). The lease is subject to (i) a tenant
break option exercisable on or after 29 March 2020, and (ii) a Redbird Scot Limited has a Dun & Bradstreet rating of O3.
The company has been in operation for 9 months.
landlord break option exercisable on or after 29 September
2020, subject in each case to no less than 6 months’ prior
written notice.
18-26 ARGYLE STREET. GLASGOW 8
FURTHER INFORMATION
EPC Viewing
Available on request. Please contact the sole selling agents:
VAT Cathal Keane
Our clients have elected to waive exemption for VAT M 07808 627224
and accordingly VAT will be payable on the purchase E cathal@sheridanproperty.co.uk
price, although we anticipate the sale will be dealt
Graeme Millar
with by way of a Transfer of Going Concern (TOGC).
M 07523 512804
E graeme@sheridanproperty.co.uk
Legal
LONDON OFFICE
Each party will be responsible for their own legal 10 Fitzroy Square / London / W1T 5HP
costs incurred in connection with the transaction.
Noel Tiffney
M 07870 999799
Proposal E noel@sheridanproperty.co.uk
We are instructed to seek offers in excess of
£4,000,000 (Four Million Pounds Sterling)
exclusive of VAT for our client’s heritable interest
subject to and with the benefit of the existing leases.
A purchase at this level would show an attractive
Net Initial Yield of 11.66% after allowing for
purchaser’s costs at 6.51%.
Sheridan Property Consultants for themselves and for the vendors or lessors of this property whose agents
they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending
purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions,
reference to condition and necessary permission for use and occupation, and other details are given
without responsibility and any intending purchasers or tenants should not rely on them as statements or
representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each
of them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has
any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and
premiums quoted are exclusive of VAT at current rate; October 2019.
Design by Tayler Reid / 020 7355 2500 / taylerreid.london
18-26 ARGYLE STREET. GLASGOW 9
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