Investment For Sale
High Quality Supermarket Investment Development Opportunity
Edinburgh is the capital city of Scotland, located approximately 400 miles north of London and 45 miles east of Glasgow. It is one of the seven cities categorised by PMA as a major city and, consequently, benefits from a significant catchment population.
Road communications are excellent with the M90 located to the north, the M8 and M9 to the west and the A1 trunk road to the south which provide links to all major cities in the UK. The city is well served by the rail network.
Morningside Road is one of the most vibrant and affluent suburbs in Edinburgh. There is a high footfall with locals and visitors to the city. The subject property is situated at the south side of Morningside Road, between Millar Crescent to the north and Maxwell Street to the south. The surrounding area includes a number of national occupiers including Waitrose, Marks and Spencer Simply Food, Superdrug, Pizza Express, Oxfam and Lloyds TSB.
The subject property comprises a purpose built convenience food store development arranged over ground and basement levels of a single storey building. The property benefits from a wide glazed frontage with the ground floor providing predominantly sales and the basement being used for storage and comprises the following approximate net internal areas:
Ground Floor: 2,658 sq ft / 246.9 sqm
Basement: 710 sq ft / 65.96 sqm
Offers of £1.8m (One Million Eight Hundred Thousand Pounds) Sterling, exclusive of VAT are sought for our client’s heritable interest, subject to and with the benefit of the existing lease. A purchase at this level would show an attractive net initial yield of 5%.
The subject property is let to Sainsbury’s Supermarkets Ltd on an FRI lease expiring 8/7/27 at a passing rent of £82,037 pa. The rent is subject to review effective 9/7/22 on an upward only basis to RPI, capped at 3.5% and collared at 1.5% per annum compounded. It is anticipated that the rental following the review will be in the order of £95,000 pa. Sainsbury’s have an option to extend their lease for a period of 10 years from 8/7/27, which would then include provision for further reviews on a 5 yearly basis on an RPI mechanism.
This property has an EPC rating of F+.
Each party to be responsible for their own legal and professional costs incurred in this transaction. For the avoidance of doubt the ingoing tenant will be responsible for Land & Buildings Transaction Tax (LBTT), registration dues and any VAT payable thereon.
In order to comply with anti-money laundering legislation, the successful tenant will be required to provide certain identification documents. The required documents will be requested at the relevant time.
ORINSEN, their clients and any joint agents give notice that:
They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.
Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It is assumed that the property has all necessary planning, building regulations or other consents and ORINSEN have not tested any services, equipment or facilities.
Purchasers must satisfy themselves by inspection or otherwise.Unless otherwise stated all prices and rents are quoted exclusive of VAT. Prospective purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction.