Darnley Leisure Park Glasgow / G53 7RH - EPF Group
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Darnley Leisure Park G l a s g o w / G 5 3 7 R H
Executive Summary
• Prime Leisure Park investment in Glasgow,
prominently located on major arterial route.
• Highest calibre, national tenant line-up including
Costa Coffee, McDonald’s, KFC, Carphone
Warehouse and Domino’s.
• 100% income producing with 87% of total
income secured against national covenants.
• Situated next to large Sainsbury’s and
B&Q, with an extensive retail catchment.
• Adjacent land to be further enhanced by a
significant mixed-use development, including
300 new homes.
• Current passing rent of £377,500 per annum.
• Income security for an average weighted
unexpired term of over 10 years until the earliest
lease breaks, with over 73% of the income
secured until at least November 2026.
• Demonstrable rental growth with consistent
uplifts at reviews.
• Park totals 13,797 sq ft (1,281.78 sq m).
• 158 car parking spaces, offering an excellent car
parking ratio of 1:88 sq ft (1:8 sq m).
• Heritable interest (Scottish equivalent of
Freehold).
• Clear asset management opportunities to add
further value.
• Offers in excess of £5,500,000 (Five Million,
Five Hundred Thousand Pounds) exclusive of VAT
are invited. A purchase at this level provides a net
initial yield of 6.49%, assuming purchaser’s standard
acquisition costs of 5.80%.
A82
GLASGOW
AIRPORT
A8
Location
Glasgow is Scotland’s largest city and the third largest in the UK.
Glasgow City has a population of approximately 593,000, 11.40%
of Scotland’s population. Greater Glasgow includes the surrounding
A77 local authority areas and has a population of 1.75 million, 34% of
A726
Scotland’s population.
A724
Darnley
Leisure Park A749
A736
A77
A726
A725
Situation
Darnley Leisure Park is located approximately 10 km (6.5 miles)
south-west of Glasgow city centre. The Park lies adjacent to Nitshill
Road (A726), which is a very busy arterial road linking the wealthy
commuter suburbs of East Renfrewshire to the M77 motorway
network. The M77 is the main arterial route connecting Glasgow
city centre, to its southern suburbs and onwards to Ayrshire.
More specifically, the subjects are situated to the west of Junction
3 of the M77 and accessed from either Nitshill Road or Leggatston
NIT
SHIL Drive, which form the northern and eastern boundaries of the
L RO
AD property respectively.
A726 Darnley to Glasgow
Leisure Park While the surrounding area is predominantly residential in nature,
City Centre
(6.5 miles) the property lies on the same development as a B&Q warehouse
and Sainsbury’s superstore. Both stores have a substantial
catchment and trade exceptionally well, generating significantly
DA
high car volumes to Darnley Leisure Park.
RN
L EY
MA
INS
RD Silverburn Shopping Centre is also located nearby, approximately
1.5 miles north of the property and is easily accessible from
A726
Junction 2 of the M77. Benefitting from a footfall in excess of
E
RIV
NI
TS
ND
HI 14 million visitors per annum, Silverburn is the principal upscale
O
LL
TST
RO
GA
AD shopping centre in Glasgow and attracts shoppers from across
LEG
central Scotland.
There are no competing fast food drive-thru’s at Silverburn and
Darnley Leisure Park subsequently benefits from the high passing
trade of the Silverburn shoppers.
Glasgow City Centre
M8 Motorway
J2
M77 Motorway
A726 Nitshill Road J3 M77 North On-Ramp
J3 M77 On-Ramp
A726 Nitshill Road J3 M77 Off-Ramp
South to Ayrshire
Darnley Darnley
Leisure Park Leisure Park
G l a s g o w / G 5 3 7 R H Darnley Mains Road, Glasgow, G53 7RH
Waukglen Road
Darnley Darnley
Leisure Park Leisure Park
Darnley Mains Road, Glasgow, G53 7RH Darnley Mains Road, Glasgow, G53 7RH
MERIDIAN DEVELOPMENTS
Darnley Darnley MIXED USE 77 ACRE DEVELOPMENT SITE
Leisure Park Leisure Park
G l a s g o w / G 5 3 7 R H G l a s g o w / G 5 3 7 R H
Site Plan Description
Darnley Leisure Park was developed in 2 phases known as Darnley 1 and
Darnley 2.
D
OA
A7
26
SR
NIT
Darnley 1 comprises a retail park of 11,946 sq ft (1,109.82 sq m), which
MAIN
SH
ILL
RO includes three large solus units and a larger block of three adjoining units.
AD
DARNNLEY
The Park was developed in 2001 and all units are of modern steel frame
construction.
Two of the solus units are drive-thru fast food restaurants (let to
McDonald’s and KFC) which have both been subject to significant recent
refurbishment by the respective tenants. The third unit is let to Carphone
Warehouse and the three unit block comprises a large Health Centre/
Pharmacy, a Domino’s and a newly-let Subway.
LE
GG
AT
Darnley 1 provides 130 on-site car parking spaces, reflecting an excellent
SO
N
DR
ratio of 1:92 sq ft (1:9 sq m).
IVE
Darnley 2 is located to the south of Darnley Mains Road and provides
an extensive single storey, purpose-built ‘Costa Coffee Drive-Thru’ unit
designed to the Costa corporate style. The property extends to 1,851 sq
ft (171.96 sq m) and was completed in 2012.
G The unit is the second of its kind to be built in Scotland by Costa and is
part of a wider expansion of the ‘Drive-Thru’ concept within the UK.
Costa secured the letting ahead of a number of competing corporate
occupiers. Since opening, the unit has performed exceptionally well,
exceeding all forecasts. The property benefits from 20 on-site car parking
spaces plus 2 designated disabled spaces, reflecting an excellent ratio of
1:93 sq ft (1:9 sq m).
The Park extends in total to approximately 1.433 hectares (3.54 acres).
EPC Ratings
Scottish Equivalent English
Unit Tenant
EPC Rating EPC Rating
A McDonald's Restaurants Ltd G D
Kentucky Fried Chicken
B G D
(Great Britain) Ltd
C Carphone Warehouse Ltd F C
D Houlihan Pharmacy Ltd E C
E DP Realty (t/a Domino's) G D
F Subway Realty Limited F A
G Costa Ltd C B
Surrounding
Developments
Immediately adjacent to the leisure park lies a 85,000
sq ft Sainsbury’s supermarket and a 120,000 sq ft B&Q
Darnley Darnley DIY Superstore, both of which generate substantial
Leisure Park Leisure Park
G l a s g o w / G 5 3 7 R H Darnley Mains Road, Glasgow, G53 7RH
volumes of traffic to the locality.
A significant mixed-use, commercial and residential
Darnley Darnley development is planned on the site located to the south
Leisure Park Leisure Park
Darnley Mains Road, Glasgow, G53 7RH Darnley Mains Road, Glasgow, G53 7RH of the B&Q store as highlighted on the plans opposite.
The 77-acre, £150 million scheme has outline planning
Darnley Darnley consent (12/00398/DC) to develop 300 new 3-5 bedroom
Leisure Park
G l a s g o w / G 5 3 7 R H
Leisure Park
G l a s g o w / G 5 3 7 R H
homes, a 75-bedroom hotel and leisure club, as well
as offices, showrooms and retail warehouses. Bellway
Homes and Persimmon Homes are to develop the
residential element of the scheme.
*Plans opposite are provided by ADF Architects and are intended for
indicative purposes only.
Tenancy Schedule
The units are let to the following tenants on full repairing and insuring terms:
Lease Size Size Rent Rent Next Rent Lease
Unit Tenant Lease Start Comments
Expiry (Sq FT) (Sq/M) (£'s PA) (£'s Per Sq Ft) Review Break Date
Rent reviews are to
A McDonald's Restaurants Ltd 21/12/2001 20/12/2026 3,043 282.70 £90,500 £29.74 21/12/2016 open market value
05/08/2017 04/08/2017 Rent reviews are to
B Kentucky Fried Chicken (Great Britain) Ltd 05/08/2002 04/08/2027 2,852* 264.96 £77,000 £27.00 open market value
Rent reviews are to
C Carphone Warehouse Ltd 25/07/2002 24/07/2027 2,032 188.78 £50,000 £24.61 25/07/2012 open market value
Rent reviews are to
D Houlihan Pharmacy Ltd 01/05/2007 30/04/2027 2,057* 191.10 £50,000 £24.31 28/02/2017 open market value
Rent reviews are to
E DP Realty (t/a Domino's) 19/03/2007 18/03/2027 972* 90.30 £25,000 £25.72 28/02/2017 open market value
Rent reviews are to
F Subway Realty Limited Feb 2014 Feb 2029 990 91.97 £25,000 £25.25 Feb 2019 Feb 2019 open market value
Rent reviews are to
G Costa Ltd 28/11/2012 27/11/2027 1,851 171.96 £60,000 £32.41 28/08/2017 open market value
13,797 1,281.78 £377,500
*Areas shown are those documented in the leases
**Agreement for lease executed 31/01/2014, conditional on building warrant. Lease start due in mid-February. The Tenant has an additional break option in the 10th year.
• Darnley Leisure Park is 100% income producing with 87%
of total income secured against national tenant covenants. Proportion of Tenant Income
• The letting profile provides income security for an average
weighted unexpired term of over 10 years to the earliest McDonald's Restaurants Ltd 24.00% 16.00% 24.00%
break options. Over 73% of the income is secured until at
least November 2026. Kentucky Fried Chicken
20.00%
(Great Britain) Ltd 7.00%
• The recent letting of Unit F to Subway attracted substantial 20.00%
Carphone Warehouse Ltd 13.00% 7.00%
interest from a number of leisure, retail and medical users,
further underlining the desirability of the scheme.
Houlihan Pharmacy Ltd 13.00%
DP Realty (t/a Domino's) 7.00%
Subway Realty Limited 7.00%
Costa Ltd 16.00%
13.00% 13.00%
Covenant Information
The Park has an exceptional occupier line-up, with 100% occupancy and 87% of the income secured
against tenants with a D&B rating of 5A1 or better:
Pre-Tax Tangible Sales
Tenant Year End Profit Net Worth Turnover D&B Rating
(£000’s) (£000’s) (£000’s)
McDonald’s Restaurants Ltd
31/12/2012 202,214 643,048 1,317,594 5A1
(1002769)
Kentucky Fried Chicken
(Great Britain) Ltd 02/12/2012 39,137 91,470 423,345 5A1
(967403)
The Carphone Warehouse
30/03/2013 98,895 864,975 1,672,115 5A1
Ltd (2142673)
Houlihan Pharmacy Ltd
31/12/2012 (112) (2,726) 8,876 N2
(SC 268674)
DP Realty Ltd (t/a Domino’s)
30/12/2012 (620) 348 15,530 B2
(2882513)
Subway Realty Ltd
31/12/2012 2,021 2,507 28,059 2A3
(4174473)
Costa Ltd
28/02/2013 93,927 243,951 552,959 5A1
(1270695)
Service Charge
The total service charge equates to £25,000 per annum and is fully recoverable. Full details will be
provided upon request.
Tenure
Heritable interest, (the Scottish equivalent of English freehold).
A726 Nitshill Road VAT
The property has been elected for VAT and accordingly VAT will be
payable on the purchase price. It is anticipated that the sale will be
treated as a Transfer of a Going Concern (TOGC).
J3 M77 On-Ramp
M77 Motorway Ayrshire
Planning
J3 M77 Off-Ramp Darnley Leisure Park is covered by the approved Glasgow & Clyde
Glasgow City Centre J3 M77 North On-Ramp Valley Joint Structure Plan (2009) and adopted Glasgow City Plan 2
(2009). The Park and is allocated for commercial uses in accordance
with Class 1,2,3,4 and 11 and related sui generis uses.
Darnley 1 was awarded detailed planning consent in accordance
with the Town and Country Planning (Scotland) Act 1997 in
August 2000 and November 2001 (Application Nos: 99/02233/DC
and 01/01562/DC).
Unit D - Houlihan Pharmacy Ltd also benefits from having a pharmacy
licence which is extremely valuable. We understand that the nearby
Sainsbury’s had historically applied for their own pharmacy licence
to create an in-store Chemist but this application was refused by
Glasgow Council.
Darnley 2, (Unit G - Costa Coffee) was awarded detailed planning
consent in accordance with the Town and Country Planning (Scotland)
Act 1997 in February 2012 (Application No. 11/02891/DC).
A copy of all planning related documents is available on request.
Asset Management
A number of additional asset management opportunities exist and
may include the following:
• Working through the forthcoming rent reviews to improve the
rental income.
• Negotiation with KFC to remove their tenant break
option in August 2017.
• Future negotiation with Subway Realty Ltd to remove their
A726 Nitshill Road tenant break options in February 2019 and 2024.
• Addition of another solus unit on unused area of car park STP.
• Addition of advertising hoardings STP.
Proposal We are instructed to seek offers in excess of £5,500,000 (Five Million, Five Hundred Thousand Pounds) exclusive of VAT for the heritable interest in the property. A purchase at this level provides a net initial yield of 6.49%, assuming full purchaser’s costs of 5.80%. Viewing & Further Information For further information, please contact: Martyn Brown Campbell Docherty Lawrence Telford Mark Sheehan 0141 204 7703 0141 204 7722 020 7299 0746 020 7299 0689 martyn.brown@cbre.com campbell.docherty@cbre.com ltelford@cocol.co.uk msheehan@cocol.co.uk CBRE/Coffer Corporate Leisure on its behalf and for the Vendors or Lessors of this property, whose Agents they are, give notice that: These particulars are set out as a general outline only for guidance to intending Purchasers or Lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Parties 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. No person in the employment of CBRE/Coffer Corporate Leisure has any authority to make any representation or warranty whatsoever in relation to this property. Unless otherwise stated, all prices and rents are quoted exclusive of VAT. Date of publication February 2014.
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