PRIME SHOPPING CENTRE INVESTMENT OPPORTUNITY
‘A prime 865,000 sq ft city centre shopping centre and high street retail investment opportunity with significant asset management potential’
GLASGOW
KEY INVESTMENT HIGHLIGHTS n
A prime shopping centre and high street retail investment covering a site area of 12.3 acres
n
The largest shopping centre in Glasgow city centre comprising 865,000 sq ft of accommodation plus 850 car parking spaces
n
Heritable Title (Scottish equivalent of English freehold)
n
Contracted income of c.£15.9m per annum and a net operating income of c.£14.6m per annum
n
Current occupancy is 95% and the WAULT to expiry is 11.1 years
n
82% of the income is derived from national multiple covenants
n
48% of the income is generated from national multiple covenants on Arygle Street
n
Footfall in 2014 was in excess of 19 million and has increased by c.18% since 2010
n
£150 million refurbishment and extension in 2010
n
Anchored by Debenhams and BHS, Hamleys and a food court. Other retailers including Topshop/Topman, H&M, Tesco, Boots, JD Sports and Superdry
n
Significant asset management potential
n
Glasgow is Scotland’s largest city and one of Europe’s top 20 financial centres
n
Glasgow is second only to London in terms of retail rankings (CACI)
n
Glasgow is the third largest city in the UK. A population of 1.62m live within a 30 minute drive time of the centre
n
St Enoch is located 200 metres from Scotland’s largest railway station
‘St Enoch is the largest shopping centre in the UK’s 2nd ranked retailing city’ (CACI)
‘Significant opportunity to increase St Enoch’s offer and scale through asset management.’
GLASGOW
Largest
Shopping Centre in Glasgow City
Large
Leisure
Asset Management potential
12.32 Acres (4.99 Ha)
19,000,000
(Scottish Freehold)
car parking spaces
Site area of
Footfall in excess of
Heritable Title
Over 850 on site
Strong demand from both
A1 and A3 occupiers
Gross Income in excess of
ÂŁ15,900,000
GLASGOW
1
2
3
MAIN MALL
FOOD COURT
ARGLYE STREET
n
Shopper footfall in excess of 19m per annum
n
ÂŁ150m refurbishment and extension in 2010
n
Opportunity to create
- A new leisure and restaurant court - Multi-screen cinema (7-9 screens) - 6 new restaurants
n
The focus for Glasgow family dining
n
48% of gross income secured by prime high street covenants
n
One of the largest food courts in Scotland
n
n
Opportunity to increase the dining offer to accommodate 150 additional seats
Tenants including Debenhams, H&M, JD Sports, Superdry, Barclays and Topshop/Topman
n
Argyle Street WAULT of 7.1 years
n
Opportunity to create new high street flagship stores
ASSET MANAGEMENT OPPORTUNITY
MAJOR FLAGSHIP STORES
2. FOOD COURT
1. MAIN MALL
ASSET MANAGEMENT OPPORTUNITY
MULTI-SCREEN CINEMA & RESTAURANT
* For indicative purposes only.
3. ARGYLE STREET FRONTAGE
GLASGOW
GLASGOW A truly global city with outstanding transport connections
ROAD The road network surrounding Glasgow is excellent, providing strong links with the rest of Scotland and the wider UK. The M8 motorway runs through Glasgow City connecting it with Edinburgh to the East. The M74 motorway links Glasgow with the south of the country and the M77 motorway links Glasgow to the west coast. RAIL Glasgow has the UK’s largest suburban rail network outside London and the biggest rail station, Glasgow Central, offers connections to all major UK cities. Glasgow Queen Street station connects Glasgow to the east and north of Scotland (Edinburgh, Perth, Dundee, Aberdeen, Inverness) and the scenic west coast towns and villages of Oban, Glencoe, Ballachulish, Fort William and Mallaig. The two major mainline railway stations are in close proximity to St Enoch with Glasgow Central being 200m to the west and Queen Street situated 600m to the north. METRO The city has an underground rail system with three stations in the city centre. It connects the west end and south side of Glasgow to the city centre. Trains run every 5 minutes at peak times and every 10-12 minutes off peak. The recently refurbished St Enoch station is adjacent to the shopping centre providing direct access to the network. BUS There are over 170 bus services in and out of Glasgow to surrounding areas with Buchanan Bus Station at the northern end of the city receiving 40,000 passengers per day. The airport can be reached from the city centre by bus in just 15 minutes. AIR Glasgow benefits from close access to two international airports. Glasgow Airport is 15 minutes from the city centre and Glasgow Prestwick is 45 minutes away. Glasgow Airport has direct flights to over 100 destinations, including many European and worldwide destinations, including North America and the Middle East. In 2014 Glasgow Airport recorded its busiest year since 2008 as 7.7 million travelled through it, representing an annual increase of 4.8% on 2013.
FINLAND NORWAY
HELSINKI
TALLINN
SWEDEN
OSLO
ESTONIA
STOCKHOLM
LATVIA RIGA
GLASGOW
DENMARK
BELFAST
LITHUANIA VILNIUS
COPENHAGEN
NEWCASTLE
MINSK
IRELAND DUBLIN
BELARUS
MANCHESTER LIVERPOOL
HAMBURG BIRMINGHAM
CARDIFF BRISTOL
CONNECTIVITY
WARSAW
UNITED KINGDOM AMSTERDAM LONDON
BERLIN
KIEV
NETHERLANDS
POLAND
DÜSSELDORF
UKRAINE
BRUSSELS
Glasgow is a truly global city; Scotland’s largest city is renowned for its culture, style and diverse population. The City boasts the third largest population in the UK and excellent communication links with the rest of the UK and Europe.
BELGIUM
COLOGNE PRAGUE
FRANKFURT
CZECH REPUBLIC SLOVAKIA
LUXEMBOURG PARIS
STUTTGART VIENNA
MUNICH
Glasgow is a port city on the River Clyde in Scotland’s western Lowlands situated 48 miles to the west of Edinburgh, the closest major city.
FRANCE
BRATISLAVA BUDAPEST
AUSTRIA
HUNGARY
BERN
SWITZERLAND
SLOVENIA
ROMANIA
LJUBLJANA
CROATIA
BUCHAREST
ZAGREB
BOSNIA & HERZEGOVINA
BELGRADE
SERBIA BULGARIA
SARAJEVO
ITALY
SOFIA
PRESTINA
KOSOVO SKOPJE
MACEDONIA ROME
PORTUGAL MADRID Lisboa (Lisbon) Setúbal
SPAIN
TIRANA
ALBANIA GREECE
ATHENS
UK RAIL
CARLISLE
NEWCASTLE LEEDS
PRESTON
INVERNESS
SHEFFIELD DONCASTER
ABERDEEN
INVERNESS
RAIL
MANCHESTER
GLASGOW
ABERDEEN
BIRMINGHAM CARDIFF
A9
LONDON
BRISTOL
EDINBURGH
A90
READING CARLISLE
DONCASTER
M9
MANCHESTER EDINBURGH
BIRMINGHAM CARDIFF
GLASGOW METRO
LONDON
BRISTOL
METRO SS
READING
S
SS O
S
GOVAN
BRIDGE ST
EN
S
ST T ES
S D IE L SH
W
RK PA G N IN N
S
RD
S
KI
ST ENOCH CENTRAL ST
RIVER CLYDE
DIGITAL S
GOVAN
BRIDGE ST
ST
Connectivity extends into the digital world with S Glasgow aiming to be a world leading digital city by 2017. Glasgow City Council awarded a Wi-Fi/small cell concession to BT to make Wi-Fi freely available in the city centre to all citizens, businesses and visitors from July 2014.
T
S
ES W
G
D
O N SS
IN
M25
CE
M3
S IE L
CK
X
RO IB
M4
S
RD
S
PA RK
S
N
S
KI N
M1
M40
LONDON BRISTOL
S
CK N O SS
S
S
X
S
S IB RO
CO W
S
BIRMINGHAM
M5
D
CENTRAL ST
D
ST .G
S
PARTICK
D
ST ENOCH
PARTICK
CE
S
M42
CA
S
CA
KE
S
SH
M54
W CO
S
D
ES RG EO
N
IL H
LV I
LH
S
CR
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D EA
H N
M1
M6
ES RG EO
ST .G
S
RIVER CLYDE
KE
LV I
MANCHESTER
ID
LL A
LIVERPOOL
M5
N KE
S
LEEDS
CARDIFF
LV I
IL H
S M1
GLASGOW METRO
ROAD
BR
D
KE
LV I
LH
N
EA
H
FOLKESTONE
ID
LL A
NEWCASTLE
M6
G
E
CR
O
EXETER
S
M8
FOLKESTONE
SHEFFIELD
EN
M77
EXETER
LEEDS
PRESTON
M90
GLASGOW
NEWCASTLE
In 2013 Glasgow was awarded £24 million as host of Innovate UK’s Future Cities Demonstrator. This is a recognition of Glasgow’s ability to innovate, adopt and embrace new technologies.
GLASGOW
‘Connectivity extends into the digital world with Glasgow aiming to be a world leading digital city by 2017’
DIVERSITY & VIABILITY Glasgow is classified as a Primary Centre, based on its retail offer, geography and demographic profile. Retail centres are scored based on the quality and quantity of the retail offer in the form of a retail attractiveness score. Glasgow is ranked 2nd nationally by this standard (CACI). Glasgow also ranks 2nd nationally in terms of retail goods spend, which is annually £1.9 billion. Of this spend, 72% is resident based with 21% coming from tourism and the remainder being worker expenditure. Outside of London, Glasgow is ranked by Promis (2015): n n n
Number 1 nationally based on total population in primary catchment area Number 1 nationally based on total shopper population Number 1 by volume of in store comparison goods spend available in the catchment
Retail Centre
Minor Class
Comparison Goods Expenditure Rank
Catchment Comparison Goods Spend (m)
RANK RF (Retail Attractiveness)
2015 Resident Population
2015 Shopper Population
London West End
International Centres
1
£4,867.3
1
15,017,785
1,242,581
Glasgow
National Centres
2
£1,858.8
2
2,882,061
606,028
Manchester
National Centres
3
£1,662.0
3
6,301,557
552,934
Birmingham
National Centres
4
£1,405.3
7
5,299,100
568,715
Leeds
National Centres
5
£1,320.7
5
4,368,941
500,723
Liverpool
National Centres
6
£1,226.6
4
3,496,387
483,749
7
£1,220.9
9
10,286,701
475,040
8
£1,212.8
10
5,789,440
510,949
9
£1,211.2
11
9,275,517
540,471
10
£1,183.0
15
5,981,695
545,609
11
£1,174.0
17
10,985,267
169,505
Large Premium London Regional Malls Premium Outer Bluewater London Regional Malls Westfield Large London Stratford City Regional Malls Trafford Large Premium Centre Regional Malls Larger London London Tourist - Dominated Knightsbridge Centres Westfield London
Source: CACI Comparison Goods Spend is the key measure of retail ranking in the UK and a consistent measure to compare towns.
‘Glasgow ranks 2nd nationally in terms of retail goods spend’
Kyle of Lochalsh Dornie Kyleakin
Oldmeldrum
Rhynie
Inverurie
Invermoriston Aviemore
vasar
Alford
ABERDEEN
GLASGOW
Aberdeen
Kingussie
Invergarry
Mallaig
Laggan
Ballater Braemar
Dalwhinnie
Spean Bridge
Banchory Stonehaven
DEMOGRAPHICS Fort William Glencoe
Montrose
Pitlochry Kirriemuir
Aberfeldy
Blairgowrie
Lochaline Dunkeld
Craignure
dlussa
Glasgow is the UK’s 3rd largest urban agglomeration with the primary population 723,132 and a total population of 2,882,061.
being Arbroath Carnoustie
Killin
Oban
Crianlarich
Dundee Dundee
Glasgow captures a very large proportion of the various catchment sub sectors, with a 41.6% share of the Primary Catchment and a large 21% share of the total catchment.
DUNDEE
Lochearnhead
Perth
Crieff
St Andrews M90
Callander Strachur
Tarbet
Dunblane
Glenrothes
Stirling M9
Lochgilphead Helensburgh Dunoon Tighnabruaich
Gourock
Greenock Rothesay
Clydebank
M80 M73 M8 M74
GLASGOW
Johnstone
M8
GLASGOW
Brodick
Irvine
300,834
£674.1
41.6%
£1,232.5
153,615
£338.7
27.5%
£2,852.5
454,449
£1,012.8
35.5%
507,294
£1,115.0
91,621
£201.2
18.9%
1,091,408
£2,433.2
59,958
£132.6
5.5%
Total 2,882,061 Catchment
£6,400.7
606,028
£1,346.6
21.0%
Livingston
Eyemouth
M8
Secondary
Motherwell Carluke
Lesmahagow
Biggar
Peebles Galashiels
PRESTWICK
Selkirk
Mauchline Abington
Cumnock
560,227
Core 1,283,359 Catchment
Maybole
Hawick Moffat
Dalmellington
Girvan
Source: CACI
Primary (at least 50% of total visits to centre) Secondary (at least 75% of total visits to centre)
Lockerbie
New Galloway
Dumfries
Tertiary Langholm (at least 90% of total visits to centre)
A74(M) Quaternary (remaining of total visits to centre)
Cairnryan Castle Dalbeattie Douglas Kirkcudbright
Tertiary Jedburgh
A74(M)
New Cumnock
Stranraer
£1,620.0
723,132
Kelso Troon Prestwick Ayr
Campbeltown
Market Share (%)
Primary
EDINBURGH EDINBURGH
EDINBURGH
M74
Kilmarnock
Shopper Population
Comparison Goods Market Potential £m)
Dunbar
M9
Airdrie
East Kilbride
Kilwinning
Kirkcaldy Cowdenbeath
M90
Falkirk Cumbernauld
Dumbarton
M77
Ardrossan
Dunfermline
M80
Hamilton
Tayinloan
Alloa
Buckhaven
Total Comparison Total Goods Catchment Population Expenditure by Residents (£m) North Berwick
Annan
Gretna
Quaternary
Source: CACI
GLASGOW
‘A total shopper catchment population of over 2.88 million’ (CACI)
Brechin
Montrose
Pitlochry Kirriemuir
Aberfeldy
Forfar
Blairgowrie
URBANISATION AND Dunkeld POPULATION GROWTH
Arbroath Carnoustie
Killin Crianlarich
Dundee Dundee
Lochearnhead
Tayport
Perth
Crieff
St Andrews M90
Callander Tarbet
Dunblane
Glenrothes
Stirling M9
elensburgh
Gourock
nock
Clydebank
M80 M73 M8 M74
Johnstone
M8
GLASGOW GLASGOW
Hamilton M77
Irvine
Troon Prestwick Ayr
ybole
EDINBURGH
PRESTWICK
DRIVE TIME CATCHMENTS
Motherwell
Population
Carluke
Lesmahagow
Biggar
Peebles
Cumnock
10 minutes
20 minutes
30 minutes
2015
176,286
949,884
1,616,013
2020
178,749
962,245
1,626,003
1.4%
1.3%
0.6%
180,974
973,027
1,631,405
2.7%
2.4%
1.0%
Galashiels Projected Growth 2015 to 2020 Kelso Primary (at least 50% flows to centre)
Abington
Selkirk
Secondary (at least 75% flows to centre)
A74(M)
Quaternary (remaining flows to centre)
Moffat
2025
Projected Growth 2015 to 2025
Source: CACI Jedburgh
Tertiary (at least 90% flows to centre)
New Cumnock
Dalmellington
Eyemouth
M8
Mauchline
Source: CACI
EDINBURGH EDINBURGH
Livingston
M74
Kilmarnock
Dunbar
M9
Airdrie
East Kilbride
Kilwinning
North Berwick
M90
Falkirk Cumbernauld
Dumbarton
Kirkcaldy
Dunfermline
M80
Stoneywood
GLASGOW GLASGOW
Alloa
Hawick
In line with Global trends Glasgow is set for strong levels of population growth over the next 5 and 10 years which will add to consumer spending levels and demand for accommodation from retailers.
ECONOMIC FUNDAMENTALS
CULTURE & HERITAGE
Glasgow is a prime target for foreign direct investment and ranks first behind London across the whole of northern Europe (Financial Times fDi Magazine Awards 2014/15).
Glasgow has a rich and diverse cultural offering, hosting over 800 events a year across the city. The Riverside Museum was awarded European Museum of the year 2013 and together with Glasgow’s other museums attracted 3.3 million visitors in 2012.
At around 27 million sq ft, Glasgow is Scotland’s largest office market and the UK’s third largest regional office market. The financial and business services sector continues to be one of the principal drivers of the Glasgow economy. The International Financial Services District (IFSD) developed by Glasgow City Council has harnessed over £1 billion of investment and created more than 15,000 jobs into the area. Among the impressive list of occupiers are:
Nearly 800 manufacturing businesses operate in Glasgow, with 19,000 employees and generating £1.4 billion in GVA. Glasgow is also home to some of the world’s biggest energy businesses with a particular focus on low carbon industries. Glasgow focusses on innovative start-up companies with a number of incubation centres across the city centre. The city is home to over 2,000 registered enterprises which generate turnover of over £1 billion and employ 17,000 staff.
HIGHER EDUCATION The City’s five higher education institutions (Glasgow, Strathclyde, Caledonian, Glasgow School of Art and The Royal Conservatoire of Scotland) teach over 65,000 students. The University of Glasgow is the 4th oldest in the English speaking world and contributes around £509 million to Scotland’s GDP. * GVA: Gross value added
Glasgow benefits from over 90 parks with an estimated 25 million annual visits made to them. The SSE Hydro provides a world class venue for music artists and other events, being located in the heart of Glasgow. Glasgow is also a centre for sporting excellence, with mainstream sports such as football and rugby well catered for but also, by hosting the Commonwealth Games, Glasgow has new sports facilities. The Emirates Arena with the Sir Chris Hoy Velodrome offers incredible facilities for both athletes and spectators. Glasgow has a vibrant tourist industry with over 30,000 people employed (Business Register & Employment Survey, 2013). Tourism generated £687 million for the local economy in 2014 up 39% from the £495 million in the previous year. Glasgow benefits from the Scottish Exhibition and Conference Centre (SECC) which is Scotland’s premier national venue for public events, concerts and confereneces. Glasgow is now the 5th most visited UK City by international tourists ranking ahead of Oxford, Bristol, Cambridge, Leeds, York, Cardiff and Liverpool (ONS).
‘Financial Times fDi magazine ranked Glasgow 1st behind London as a target for foreign direct investment across northern Europe’
GLASGOW
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Argyle Street forms an extension of the Buchanan Street fashion pitch, is part pedestrianised and benefits from dual entrances to St Enoch Centre and large stores for TK Maxx, Primark, M&S, River Island and Next.
M8
POR
This pitch is supported by the busy thoroughfares of Argyle Street (at the southern end of Buchanan Street) and Sauchiehall Street (to the north of Buchanan Street).
S
ST
Glasgow is home to an impressive list of top class retailer brands whose presence endorses Glasgow as a world class retail destination. Retailers with a presence in Glasgow range from premium operators such as Apple, Bang & Olufsen, Ralph Lauren and Mulberry, to popular mass market retailers, including H&M, Top Shop/Top Man, Urban Outfitters and River Island.
COWCADDENS
The three main department stores anchoring Glasgow city centre include Debenhams (anchoring St Enoch Centre), House of Fraser (at the bottom of Argyle Street) and John Lewis, with other large stores represented by Primark, M&S, BHS and Forever 21. Buchanan Street is one of the strongest retail pitches in Europe and comprises the prime, fully pedestrianised high street retail pitch in Glasgow city centre.
LAND
The ‘style mile’ is one of Britain’s most dynamic and diverse retail centres with everything from high end designer stores and independent boutiques to every major UK retailer on offer. The area is focussed around Glasgow’s busy thoroughfares, including Buchanan Street, Argyle Street (where St Enoch Centre is located), Merchant City and West End areas. These areas make up the Glasgow City Centre’s retail footprint, much of which is pedestrianised.
M A IT
Glasgow is the UK’s largest and most successful shopping location outside of London. Over half a million square metres (5,380,000 sq ft) of retail accommodation can be found in Glasgow, with extensive prime and super-prime shopping on offer within one square mile in the city centre, known as the ‘style mile’.
DOBB IES LO A N
GH
RETAILING IN GLASGOW
N
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GLASGOW
‘St Enoch Centre is the largest shopping centre in Glasgow, situated on the ‘style mile’ and in close proximity to major transport hubs’
GLASGOW SHOPPING CENTRES
OUT OF TOWN PROVISION
ST ENOCH At 865,000 sq ft it is the largest shopping centre in the city centre. The centre is located at the base of Buchanan Street on Argyle Street.
Glasgow city centre is complemented in terms of retail provision by a selection of out of town shopping centres and parks. The three main fashion focussed centres are Silverburn Shopping Centre, Braehead Shopping Centre and Glasgow Fort Retail Park.
BUCHANAN GALLERIES The centre opened in 1999 and provides 600,000 sq ft of retail accommodation located at the northern end of Buchanan Street. PRINCES SQUARE Totalling approximately 100,000 sq ft, this centre provides the ‘high end’ retail offer for Glasgow city centre. Princes Square is located at the southern end of Buchanan Street.
ST ENOCH CENTRE St Enoch is the largest shopping centre in Glasgow city centre, extending to 865,000 sq ft, with significant scope to increase the size and net income through asset management. The Centre is situated on the corner of Buchanan Street and Argyle Street in the heart of Glasgow’s prime retail pitch. St Enoch was originally developed in 1989 and underwent a significant, £150 million, refurbishment and extension in 2010. The Centre provides a covered, modern, shopping experience, housed under a glazed roof predominantly arranged over two floors with some accommodation on the third floor and significant prime high street frontage to Argyle Street. St Enoch is strongly anchored by Debenhams, with an excellent supplementary fashion offer from H&M, Top Shop/Top Man, Superdry, JD Sports and Burton/Dorothy Perkins. Other leading tenants include Tesco, Boots and the Disney store. Appealing as a family destination, St Enoch benefits from a large Hamley’s toy-store anchoring the 3rd floor (one of only 7 UK city centre stores) and also accommodates the main covered Food Court in Glasgow city centre providing a fast food and ‘grab and go’ offer. The centre’s restaurant provision has recently increased to include Ed’s Easy Diner, Pizza Hut and Harry Ramsden’s. There are a number of ongoing initiatives to improve the Food Court environment and increase the number of A3 units (in conjunction with a cinema re-development) and this will further cement St Enoch’s position as the number one family dining destination in Glasgow. St Enoch features a striking glazed entrance on the corner of Buchanan Street and Argyle Street just 200m from Glasgow Grand Central Station. This major entrance is supplemented from a number of other access points, including the Debenhams entrance and through Dunlop Street. There are a number of possible options to improve the entrance and retail experience on Dunlop Street. St Enoch Square offers additional retail and restaurant provision. The attractive Square is located directly opposite Buchanan Street adjacent to St Enoch’s main entrance and accommodates the newly refurbished subway entrance. The Bucks Head building (43 to 63 Argyle Street) is included within the ownership and takes the form of four retail units let to tenants including WH Smith, Poundworld and Card Factory.
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0F.U14 Love Accesories
Clinton Cards
M&Co
Warren James Ness
0F.U34
0F.U33
0F.U30
No.1 Currency Exchange Thorntons
2 U4 F. O 43 .U 0F
U17
0F.U68
Card Factory
Pound World
WH Smith
0F.U54
0F.U55
0F.U56
0F.U57
U58
U46
0F.U59
0F.U60
0F.U61
0F.U62
< Debenhams Entrance
< Debenhams Entrance
0F.U63
to be to be Caffe Nero
0F.U65
Evans
Ann Summers
Wallis
O2
St Enoch Underground
0F.U63
Argyle Street Station
Argyle Street
0F.U32 0F.U31
Muffin Break Zumo 0F.U29
GROUND FLOOR
FIRST FLOOR
1 20 F.U 05 11 sq 3 f
Ch K ocimb o l Calatees fe
1F.U115 2330 sqft
U46
0F.U59 12216 sqft
U90
(Second Floor)
1 11 F.U 69 11 sq 2 ft
1F
1 21 F.U 29 11 sq 0 ft
Pu .U111 lp
1 10 F.U 75 10 sq 4 1 ft 44 F.U 00 10 sq 3 ft
5 10 .U 1F
7 10
06 1/ 1F .U 10
1F.U102 2935 sqft
Burger King
U28
1F.U96
1F.U95
.U
70
USA Nails
1F.U94
Edinburgh Woollen Mill
29 .U 06 10 sq 8 ft
71
1F .U
Food court seating
1F .U
McDonalds
72
RBS
St. Enoch Working 1F.U92 1753 sq ft
1F.U91
1F.U89 2490 sq ft
1F.U102
1F
Di Maggio’s > 1F .U 1F.U73
Wongs
1F.U99
Mooboo
Pizza Hut 1F.U100
Rollover Hotdogs >
Taste > 1F.U74
1F.U75
KFC 1F.U76
Ed's Easy Diner 1F.U77
1F.U78
Optical Express Aulds 1F.U79
Trespass
1F.U83
1F.U82
1F.U81
1F.U80 3133 sq ft
Regis Hair Thomas Cook
1F.U84 1300 sq ft
Card Land
1F.U86
1F.U85 971 sqft
JD Sports
1F.U87 4383 sq ft
Food Court BHS
1F.U98
>
>H Sw en ee ley ts ’s 1F
GLASGOW
2F.U119
GLASGOW
‘The centre benefits from a total of 855 car parking spaces’
CAR PARKING The centre contains both a surface and a multi-storey car park, generating net revenue of £1.2 million. Multi-storey car park
Dunlop Street Car Park
Integrated into the shopping centre is a 743 space multi-storey car park, which feeds shoppers directly into the shopping mall. This car park is accessed via a ramp at the rear of the scheme on Howard Street.
The Dunlop Street car park is a surface car park, providing 112 spaces, which is situated to the rear of BHS and accessed via Osborne Street.
The car park is operated by the Centre Management and the current tariff is as follows:
This car park is let to Glasgow City Council. The Council pay 90% of the annual rental profit to the landlord of St Enoch. The income received by the landlord for 2015 is projected to be £229,696. The surface car park is operated via a pay and display system and the current parking charges are as follows:
Length of Stay
Tariff
Up to 1 hour
£1.50
Up to 2 hours
£3.50
Length of Stay (Mon - Sun)
Tariff
Up to 3 hours
£5.50
0 - 1 hour
£1.40
Up to 4 hours
£6.50
1 - 2 hours
£2.80
Up to 5 hours
£7.50
2 - 3 hours
£4.20
Up to 6 hours
£8.50
3 - 4 hours
£6.00
Up to 8 hours
£12.00
4 - 5 hours
£8.40
Over 8 hours
£15.00
5 - 24 hours
£10.00
The net operating income from the multi-storey car park for 2015 is projected to be £968,831.
FOOTFALL
COMMERCIALISATION
The annual footfall for St Enoch during 2014 was in excess of 19,000,000 which is comparable with some of the UK’s leading Prime Shopping Centres.
In 2015 the St Enoch Centre is projected to generate £301,990 from commercialisation activities, after a 25% payaway to Shoppertainment Management. There is an additional amount of c.£300,000 per annum generated from additional commercialisation.
The footfall is distributed across the various entrances to the centre with the busiest being the Buchanan Mall entrance with approximately 30% of the footfall.
There is significant scope to drive commercialisation income, especially in partnership with the Council in St Enoch Square.
84
PH
78 to 80
15
92
70 to
7.9m
76
ACE
56 to
9.4m
68
201 5
14
52
MAXWEL L STREET
22 24
15
20
18
4
30
24
6
26
Station
117
St Enoch Underground
48
STREE T
65 to
18
36 to
ARG YLE
8
ADAM S CO URT LANE
50
TCBs
LB
The site totals 12.32 acres (4.99 hectares).
13
94
3
96 to
5 to 17
98
3
102
OCH PL
3
106
12
Travel Centre
Bank
Posts 2
51
T STREE
23
DUN LOP
19 to
40 38
17
Argyle Street Station
60 to 64
16
Posts
22
21 to
28
DS TRE ET
19 29
St Enoch Shopping Centre 31
40
8.2m
40 42
TCBs
43
ET
54 to 58
66
to 4 8
ST RE
33 to
Hotel
50 52
22
PH
OS B
5
68 76
70
OR
12 2
NE
ET
72
8
ON
82
ST RE
12 0
HO WA R
17
33 35
179
46 to
56
177
44
13 to
Posts PCs
9.2m 11
34 36
47
1
TCB ST ENOCH SQUARE
1 to 9
75
25 to 29
DIX
60
Car Park
4
LB
90
6
FO XS TR
EE T
8.1m 6.7m
101
6 10
22 0
90
ET TR E
6
PS
19
St An d re RC w's Ca the d ra l
en s
157 to 16 1
165 169
25 1
Ga rd
75
Qu ay
153
5.9m 21 4
e
9
171
175
H OW ARD
179 181
185
STRE
191 195 197
100
102
33 104
14
LB
ET
180
7
6.4m
Ho us
LL ST REET
63
6.1m
14
m
E
141
PH 22 2
PLAC
KW E
Multistorey Car Park
STOC
96
MA XW ELL
STOCK WELL
5.7m 0
26 0
170
2 66
55
8
41
26
61
ST RE ET
ST RE ET
40
27
The ownership plan shown is an approximate for illustrative purposes with further details available on the website.
110 to 114
167 to
ST EN
120
1
116 to
7.3m
The property is held Heritable Title (Scottish equivalent of English freehold).
V
3
122
11
132
9 to
62to66
134
4
138
3
1
140
Tunnel
8
TENURE
For illustrative purposes only
GLASGOW
Car
El Su
186
GLASGOW
TENANCIES
SERVICE CHARGE
A full schedule of tenancies is provided in the data room and sets out in detail the accommodation, income and expiry profiles for the centre. St Enoch is let to 87 retailers; 73 of the retailers are located within the centre and the remaining 14 are on Argyle Street. In addition, a number of retailers lease remote storage units within the scheme. 27 of the retail leases include a turnover provision.
The service charge period runs from January to December, with a budget for 2015 of £3,948,261. The service charge is calculated on a weighted floor area basis and there are three separate budgets for the main Centre, the Argyle Street units and the Food Court.
The anchor stores and a number of the LSU’s are let on long leases thereby providing significant income security. The centre has a strong expiry profile with a WAULT of 11.1 years to expiry and 6.4 years to break. The Centre currently provides a total gross income including car park, turnover and commercialisation of £15.9m*. Allowing for marketing and landlord’s shortfalls the Centre provides a net income of £14.6m per annum. *Car park income is net.
The service charge for the main Centre equates to £11.18 psf. Year
Status
Amount
2015
Budget
£3,948,261
2014
Reconciled
£3,858,014
2013
Reconciled
£3,957,149
‘Over 87 retailers provide a WAULT of 11.1 years’
“St Enoch generates a net income of £14.6m per annum”
GLASGOW
INCOME & COVENANT PROFILE The total contracted gross income, including vendor top ups on unexpired rent free periods is £15.9m per annum. After the deduction of landlord non-recoverable costs and the landlord contribution towards marketing, the net current rent is £14.6m per annum.
Car Park 7.2%
3.9% Mall Income
2.3% Regional Multiple 4.4% Local Covenant
St Enoch benefits from an excellent WAULT to lease expiry of 11.1 years, excluding the main car park.
Rent by Covenant Type The income profile is further strengthened by having 82.2% secured against national multiple occupiers with an additional 7.2% being generated from the car parks.
IncoMe expiry profile
£9,000,000 £8,000,000
82.2% National Multiple
£7,000,000 £6,000,000
Rent Breakdown
£5,000,000
48% of the gross annual income is derived from the high street property fronting Argyle Street; this proportion of income constitutes a prime high street investment block.
£4,000,000 £3,000,000 £2,000,000 £1,000,000 £0
7% Car Park
48% Argyle Street
0-1 years
1-2 years
2-3 years
3-4 years
4-5 years
5-8 years
Over 8 years
ESTIMATED RENTAL VALUE The total ERV for the Centre is £16.9m per annum.
45% Shopping Centre
0F 0F .U 51 27 .U 7 52 sq ft
Folli 0F.U53 Follie
Fa Xil sh e io n
Fo 0F.U ss 50 il
0F .U 38
Co st a >
0F .U 39
Caffe Nero
Ro ha n 0F .U 40
0F.U37
0F .U 41
Greggs
Ec co
St Enoch Underground
0F.U36
Nandos
0F .U35B
0F.U66
St Enoch Underground
O2
Wallis
0F.U54
0F.U55
0F.U56
< Debenhams Entrance
< Debenhams Entrance
0F.U63
0F.U62
0F.U61
0F.U60
0F.U59
U46
U58
0F.U57
Ann Summers
Evans
0F.U65
to be Caffe Nero WH Smith
Pound World
Argyle Street
Cl air es
0F .U35A
Jackson the Tailor
l at te col Ho ho C 48 .U 0F
7 U4 ft F. q O 0s 1 22
0F.U64
>
44 .U 0F
Moriconi Jewellery >
U28
0F.U26
0F.U27
The Perfume Shop
0F.U24
0F.U25
Blue Inc Woman
Jnr Station U23
0F.U21
0F.U20
Arran Aromatics
0F.U19
Rebel Rebel
Barrhead Travel
49 .U 0F
T Sh aki ap ng e
>
Millieâ&#x20AC;&#x2122;s Cookies
U1
Tesco
0F.U10
0F.U32 0F.U31
No.1 Currency Exchange Thorntons
0F.U34
0F.U33
0F.U30
Pavers
0 2, F.U 78 45 2 sq ft
U2
0F.U4
0F.U3
Quiz Clothing
0F.U7
0F.U6
0F.U5
Body Shop Garage Shoes H.Samuel Blue Inc
0F.U8
The Works
Game
Yankee 0F.U9 Scotland
0F.U12
0F.U11 1561 sqft
0F.U13
Miss Diva Colors
0F.U16
0F.U15
0F.U14 Love Accesories
Clinton Cards
M&Co
43 .U 0F
U17
0F.U68
0F.U63
Argyle Street Station
4. Flagship Store on Argyle Street 2. Dunlop Street
Warren James Ness
Muffin Break Zumo 0F.U29
2 U4 F. O
O B pt o ici o an ts s
ASSET MANAGEMENT OPPORTUNITIES
U46
0F.U59 12216 sqft
U90
1. Cinema & Restaurant Re-development
1F.U115 2330 sqft
Ch K ocimb o l Calatees fe
1 20 F.U 05 11 sq 3 f 1 11 F.U 69 11 sq 2 ft
Pu lp
1 21 F.U 29 11 sq 0 ft 11 1 .U 1F
1 10 F.U 75 10 sq 4 1 ft 44 F.U 00 10 sq 3 ft 29 .U 06 10 sq 8 ft
5 10 .U 1F
7 10 .U
06 1/ 10 .U 1F
U28
1F.U96
1F.U95
(Second Floor)
1F.U102 2935 sqft
Burger King
USA Nails
1F.U94
Edinburgh Woollen Mill
1F
Food court seating
70
.U
1F
McDonalds
71
.U
1F
RBS
St. Enoch Working 1F.U92 1753 sq ft
1F.U91
1F.U89 2490 sq ft
1F.U102
>H Sw en ee ley ts ’s 1F
Di Maggio’s >
72
.U
1F
1F.U73
Wongs
1F.U99
Mooboo
Pizza Hut 1F.U100
Rollover Hotdogs >
Taste > 1F.U74
1F.U75
KFC 1F.U76
Ed's Easy Diner 1F.U77
1F.U78
Optical Express Aulds 1F.U79
Trespass
1F.U83
1F.U82
1F.U81
1F.U80 3133 sq ft
Regis Hair Thomas Cook
1F.U84 1300 sq ft
Card Land
1F.U86
1F.U85 971 sqft
JD Sports
1F.U87 4383 sq ft
BHS
1F.U98
>
3. Food Court Reconfiguration
2F.U119
GLASGOW
ASSET MANAGEMENT OPPORTUNITIES
1 CINEMA & ADDITIONAL A3 Plans have been prepared to accommodate a 30,000 sq ft unit at ground floor and on the upper floors, 6 restaurants and a 30,000 sq ft cinema (7-9 screens). There is also the possibility to extend the re-development further, increasing the size of any potential cinema to 60,000 sq ft. The landlord is in advanced discussions with cinema operators and also existing tenants in relation to downsizing into newly created ground floor units.
2
DUNLOP STREET Dunlop Street provides an important second link from Argyle Street into the shopping centre. Plans have been created to enhance the street through both public realm works and re-development. This will drive pedestrian flow. As an integral part of any cinema and leisure re-development this entrance would be enhanced by these improvements. As part of the upgrade of Dunlop Street a number of the retail units can be reconfigured to provide improved accommodation. The potential also exists to create additional income through increasing the lettable floor area.
3
4 FOOD COURT The food court at St Enoch is a major USP and is the most popular family dining location in Glasgow. Plans have been created to create an additional 150 seats in a redesigned and refurbished food court. The efficient redesign not only refreshes the environment but the associated space savings will allow the creation of three additional A3 kiosks, generating more income.
FLAGSHIP STORES ON ARGYLE STREET
Unique to the shopping centre is the extremely powerful Argyle Street frontage, a natural extension to Buchanan Street. There is an opportunity to re-develop either one flagship store or up to three triple height, glazed, retail units. This re-development could either be completed as a â&#x20AC;&#x2DC;stand alone blockâ&#x20AC;&#x2122; or the ability exists to extend into the centre. The latter option would allow a 50,000 sq ft flag ship store to be created. There are a number of ongoing discussions with target tenants regarding either a flagship store letting or a break up into smaller stores.
GLASGOW
EPCs A full set of EPCs are available for the Centre and are located in the data room.
VAT We understand that the property is elected for VAT purposes. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
OWNERSHIP STRUCTURE The property is held in a Jersey Unit Trust. Offers are invited for both the property and the units of the Trust. A structure chart is available on the marketing website.
‘The shopping centre offers a covered shopping experience which was greatly improved and expanded following a £150 million refurbishment and extension in 2010’
GLASGOW
WEBSITE Additional information can be found on the marketing website www.stenochinvestment.co.uk.
CONTACTS James Waldock james.waldock@eu.jll.com 020 7852 4830 Edward Owen ed.owen@eu.jll.com 020 7318 7822 Joshua Vernon joshua.vernon@eu.jll.com 020 7087 5346 MISREPRESENTATION ACT 1967 | DISCLAIMER COPYRIGHT Š JONES LANG LASALLE IP, INC. 2015. All rights reserved. Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract. b) The information contained in this communication has not been independently verified. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither Jones Lang LaSalle nor any of their employees, directors, advisers and/ or representatives shall have any responsibility or liability whatsoever for any loss howsoever arising from any use of or reliance upon this communication or its contents or any further communication relating to the subject matter of this communication or otherwise arising in connection with this communication. The information set out herein is confidential and may be subject to updating, completion, revision, verification and amendment and such information may change materially. c) No person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to the subject matter of this communication. September 2015. Designed and produced by Creativeworld. Tel: 01282 858200.
PRIME SHOPPING CENTRE INVESTMENT OPPORTUNITY