DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK - IRVINE AYRSHIRE KA12 8EJ - LoopNet
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I R V I N E • AY R S H I R E • K A 1 2 8 E J DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
rivergatecentre.com
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
Investment Considerations
Rivergate is the dominant shopping centre in Irvine,
Ayrshire, situated 32 miles south west of Glasgow.
A convenience-led centre serving a loyal catchment,
extending to circa 200,000 people within a 20 minute
drive time.
Anchored by strong footfall drivers Asda (33.3% of the
income) and Primark (11% of the income).
The centre provides approximately 353,562 sq ft of
accommodation across 62 units and Rivergate House
providing circa 12,500 sq ft of office floorspace.
Approximately 85% of the income is secured against
national multiples.
The top 5 tenants by rent are Asda, Primark, Wilko, Boots
and Poundland, accounting for 58% of the total income.
Other key retailers include JD, Superdrug, Specsavers,
Holland & Barrett, Deichmann, JD Wetherspoon, Body
Care, Card Factory, Vodafone, EE, Costa and Greggs.
WAULT of circa 4.6 years.
Active asset management opportunities.
1,100 car parking spaces with free parking for up to
4 hours and on weekends.
Total gross income of £3,741,839 per annum.
Net operating income, after deductions of shortfalls,
of £2,619,240 per annum.
Large site of 18.2 acres (7.37 hectares)
Held Feuhold and long leasehold.
Proposal
We are instructed to seek offers in excess of £24,533,000
(Twenty Four Million, Five Hundred and Thirty Three
Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive net initial yield
of 10.00% based off the net income, assuming standard
purchaser’s costs. This equates to a low capital value of
£69 per sq ft.
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
Location The North Ayrshire Local 32 miles
The property is located in Irvine, a coastal new town on Development Plan 2019 south west of Glasgow
the west coast of Scotland in North Ayrshire. Irvine
The area is set to benefit further from initiatives set out
9 miles
lies approximately 32 miles south west of Glasgow,
9 miles west of Kilmarnock and 60 miles south west of in the North Ayrshire Local Development Plan 2019. Inverness
Edinburgh. The town has a population of around 33,690, 2 miles south east of the subject property is i3, which west of Kilmarnock
making it the largest settlement in North Ayrshire. is south west Scotland’s leading innovation and industrial Aberdeen
investment location. The campus offers businesses a
Irvine was a manufacturing town with one of the most
prominent ports in Scotland. Now most jobs are focused
range of attractive serviced sites, which has attracted
companies such as GSK. Thanks to £21 million Ayrshire
60 miles
south west of Edinburgh
in the public and private sector, with the public sector Growth Deal funding, the council is looking to maximise
accounting for 20.2% of total employment in Irvine, the full potential of this area. Dundee
slightly above the average for centres of a similar size.
Ayrshire Growth Deal is aiming for major redevelopments Stirling
The town benefits from excellent accessibility via the at Irvine Harbourside, 0.5 miles south west of the Greenock Edinburgh
subject property. It has been identified as a potential Glasgow
local road network with the A78 and A71 accessed via
the Warrix Interchange 1 mile to the south east. The growth location for residential, tourism, industrial and IRVINE Kilmarnock
A78 provides quick road links to the north, the A71 to commercial leisure uses.
the east and connecting to the M77 at Junction 8 via
Kilmarnock, approximately 8 miles to the north east.
Newcastle Upon Tyne
Irvine train station is situated adjacent to the subject Carlisle
Sunderland
property, which is on the mainline between Ayr and
Glasgow. It serves nearby towns, with frequent trains £21 million Penrith
Darlington
Middlesbrough
to Glasgow with a journey time of 40 minutes. Glasgow investment funding for
Airport is located 20 miles to the north east of the
property and provides flights to a number of national developments through the Harrogate
and international destinations.
Ayrshire Growth Deal Leeds
York
Bradford Hull
Manchester
LiverpoolSheffield
Lincoln
Mansfield
Crewe
Newcastle- Stoke-on-trent
under-Lyme Nottingham
Derby
Stafford Burton upon
Trent
Shrewsbury Cannock
Telford
Wolverhampton Tamworth
Sutton
Walsall
Leicester Peterborough Norwich
West Bromwich Coldfield
Willenhall Hinckley
DudleyNuneaton
Halesowen
Stourbridge Birmingham Corby
Kidderminster SolihullCoventry
Rugby
Stourport-
on-Severn
Redditch Leamington
Spa Northampton Cambridge
Worcester Bedford
Milton I
Keynes
Gloucester Cheltenham Stevenage Colcheste
Luton
Harlow C
Oxford
Swansea AmershamWatford
High
Wycombe Brentwood
Newport Swindon Slough Basildon
Southe
Cardiff Bristol Reading GravesendMarg
Rochester
Weston- Staines Chatham Gillingham
super-Mare Bath Camberley
Woking Maidstone
Basingstoke
Guildford
Crawley Tunbridge We
Eastleigh
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
Situation
Rivergate Shopping Centre is situated on the western side of Irvine
and forms an integral part of the town centre. The centre anchors the
main streets of the High Street and Bridgegate and is an essential link
between Irvine Train Station and the High Street. The site is bounded by
Bridgegate to the east, River Way Retail Park to the south, Irvine Train
Station and associated train line to the west, and Friars Croft offices
to the north. The River Irvine runs underneath the eastern side of the
subject property.
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The centre forms the principal retailing provision for the town, with
Riverway Retail Park, located approximately 0.2 miles south of the
centre. The centre combines with the retail park and nearby foodstores
to create the dominant retail destination for the town and its extensive
catchment of approximately 200,000 people.
The shopping centre is situated in a very prominent and accessible
position off the A737. Access to the scheme is provided on the western
edge of the property via New Street at Rivergate Roundabout and via
A737 at Fullarton Roundabout.
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
Rivergate Shopping Centre is an essential
link between Irvine Train Station, the High
Street and Bridgegate
Heatherhouse Industrial Estate Irvine Beach
Sainsbury’s Tesco Extra
Bogside Flats SSSI
Riverway Retail Park
Irvine Station
Cunningham House
Kirkgate Car Park
Bridgegate & High Street
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
Demographics
Irvine has a sizeable and loyal catchment of over 198,000 within a 20 minute drive time.
Total retail expenditure in Forecast growth in retail 3 designated strategic investment
2020 was £416,000,000, expenditure from 2020-2025 zones in Irvine identified
substantially more than centres is 1.7% per annum. in the North Ayrshire Local
of a similar size. Development Plan 2019.
House price growth of 10.6% Over 4,000 new homes Irvine, Winner of Scotland’s Most
between 2019 Q4 - 2020 Q4. to be built in the next 10 Improved Place. The regeneration
years. has had a transformative effect
on the town centre.
i3, Irvine’s strategic innovation 1 in 5 of the immediate Car ownership increased at
and industrial investment catchment are retirees who are significantly above the average
location with £21 million of less likely to shop online and rate for centres of a similar size,
funding. GlaxoSmithKline (GSK) prefer to shop frequently and in terms of total car ownership
recently expanded in the area locally. and multiple car ownership.
which involved an investment of
around £70 million.
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
RIVERGATE SHOPPING CENTRE KEY STATISTICS
353,562 sq ft 18.2 acre 1,100 car parking spaces
of retail space across site in the heart of with free parking
62 units Irvine town centre at weekends
90.5% let 85% of the income
is secured against
33% of the centre’s
income secured
by floor area national multiples against Asda
4.6 years 8,390,000 £3,741,839
per annum
WAULT to expiry annual footfall gross income
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
Description
The property is located in the centre of Irvine and forms an integral
part of the town centre. The centre anchors the main streets of
the High Street and Bridgegate and therefore benefits from a high
level of footfall. Rivergate Shopping Centre comprises a dominant
purpose-built shopping centre that opened in 1974 and was later
refurbished and extended in 1992, when it incorporated a 77,989
sq ft Asda supermarket anchor. The centre is the prime retail offer in
Irvine and is the largest covered shopping centre in Ayrshire. Retail
offer within the 353,562 sq ft centre complements the demographic
with anchor tenants including Primark, Boots, Wilko, Poundland and
JD. The property also includes a two-storey office building known as
Rivergate House.
Rivergate has several entrances, the eastern entrance provides
access from the High Street and Bridgegate whilst the western
entrance provides access from the car park and train station. The
two-storey property is of concrete frame construction with brick and
block external walls and a flat roof coated in bitumen.
There is ample car parking with approximately 1,100 car parking
spaces. This is provided by a multi-storey car park linked by a
footbridge to the centre, a surface car park at the western end of the Approximately 85% of the income is
centre and another car park dedicated to the Asda store.
secured against national multiples
INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
Tenancies
The scheme is let on 55 tenancies.
Approximately 85% of the income is secured against
national multiples.
58% of the income is secured against the top 5 retailers Asda (33.3%),
Primark (11.0%), Wilko (5.4%), Boots (4.0%) and Poundland (3.8%),
which all trade well at the scheme.
Most tenants are secured on FRI leases with fully recoverable
business rates, service charge and insurance provisions. A tenancy
schedule is available in the marketing data room, with the overall
tenancy position summarised as follows:
• Current gross income of £3,741,839 per annum
• Net income of £2,619,240 per annum
59%
of the income is secured to 2026 and onwards
97%
of this is secured against national covenants
such as Specsavers, Asda, Boots, Greggs, JD,
Wetherspoon, Primark and Deichmann
The top 15 rent payers comprise almost
70%
of the incomeINVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
I R V I N E | AY R S H I R E | K A 1 2 8 E J
The largest covered shopping centre
in Ayrshire with an average footfall
of 161,000 people per week
DAVIDSON
WHOLESALE
LTD
CARD CHOICE
BRANDS OUTLET
CLOTHING
DISCOUNT STORES
BLACK ROOSTER PERI PERI
LITTLE RIPLEY
GIFT SHOP
AND
SPECSAVERS
PICK UP
Asda and Primark anchor the centre
and comprise 44% of the income,
secured until 2026INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
Tenure
The vendor holds both the feuhold and long
leasehold in the property.
The site extends to 18.2 acres (7.37 hectares).
Asset Management
We understand the shopping centre trades well, as evidenced by
the range of retailers present here. Although the centre is 90.1% let
and income producing, there are numerous ongoing discussions with
existing and new occupiers to improve the scheme. Whilst Asda, who
comprise 33% of the centre’s rental income, have a lease with a 5.75
year unexpired term, recent discussions have taken place regarding
agreeing a new longer lease. We highlight some asset management
opportunities which could be undertaken to create further value:
• Active asset management to secure existing tenants by extending
lease commitments.
• Increase alternative offers to diversify tenant mix, with a focus on
F&B and leisure to increase dwell time and decrease vacancies.
• Implement ongoing rates mitigation action to improve the level of
net operating income.
• Flexible floor space to combine or split units to accommodate
tenant demand.INVESTMENT TENURE & PROPOSAL &
AERIAL LOCATION SITUATION RETAIL PROVISION DEMOGRAPHICS KEY STATISTICS DESCRIPTION TENANCIES GOAD PLAN
CONSIDERATIONS PLANNING CONTACTS
DOMINANT REGIONAL SHOPPING CENTRE ANCHORED BY ASDA AND PRIMARK
EPCs
Proposal
Energy Performance Certificates (EPCs) are available via the
marketing data room. We are instructed to seek offers in excess of £24,533,000
(Twenty Four Million, Five Hundred and Thirty Three
Corporate Acquisition Thousand Pounds), subject to contract and exclusive of VAT.
A purchase at this level reflects an attractive net initial yield
Both interests in the property are held in separate Special Purpose
of 10.00% based off the net income, assuming standard
Vehicles (SPVs), domiciled in Jersey. These entities will be made
purchaser’s costs. This equates to a low capital value of
available to prospective purchasers. Further information is
£69 per sq ft.
available upon request.
Data Room Contacts
Further information is held on a dedicated marketing data room.
Miles Marten
Access can be provided on request.
T: 020 7317 3777
M: 07770 748 290
Surveys E: miles.marten@avisonyoung.com
The vendor has commissioned measured and building surveys Jack Lloyd
which can be made available to a purchaser at their cost. T: 020 7317 3796
M: 07747 883 231
E: jack.lloyd@avisonyoung.com
VAT
Carys McCulloch
The property is elected for VAT, however, it is anticipated that T: 020 7911 2772
the transaction will be treated as a “Transfer of a Going Concern” M: 07552 246 069
(TOGC). E: carys.mcculloch@avisonyoung.com
Avison Young
22 Ganton Street
London W1F 7FD
avisonyoungretail.co.uk
MISREPRESENTATIONS NOTICE Avison Young hereby gives notice that the information provided either for itself, for any joint agents or for the vendors lessors of this property whose agent Avison Young is in this brochure is provided on the following conditions: 1. The particulars are set out as a general outline only,
for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. 2. All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and
are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. 3. No person in the employment of Avison Young, or any joint agents, has any authority to make or give any
representation or warranty whatsoever in relation to the property or properties in this brochure. 4. All prices quoted are exclusive of VAT. 5. Avison Young shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third
parties, and not by Avison Young. Anti-Money Laundering: To comply with our legal responsibilities for Anti-Money Laundering, it will be necessary for the successful bidder to provide information necessary to complete these checks before the deal is completed. Information required will include: 1. Corporate structure
and ownership details. 2. Identification and verification of ultimate beneficial owners. 3. Satisfactory proof of the source of funds for the buyers/funders/lessee. October 2021. Designed and produced by Creativeworld Tel: 01282 858200.You can also read
