44-46 princesstreet.pdf - Culverwell Property Consultants

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100% Prime Reversionary Retail InvestmentAccommodationWe have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition) and would estimate that the subjectsextend to the following areas and dimensions:Address Tenant Net Frontage Shop Depth Floor Sqft Sqm Total Reduced Area(30 ft Zones)44 Princes Street, Edinburgh Lush 13ft 1”(3.98m)45 Princes Street, Edinburgh&Monsoon/Accessorize15ft 5”(4.7m)61ft 8”(18.8m)40ft(12.16m)Ground floorBasementTotalGround floorBasementTotal6283841,01257540898358.3435.6794.0153.4137.9091.32528 sqft (49.05 sqm)550 sqft (51.09 sqm)1 South St David Street, EdinburghMonsoon/Accessorize23ft 9”(7.24m)38ft 5”(11.72m)Ground floorTotal1,0881,088101.07101.07*828 sqft (73.29 sqm)46 Princes Street, Edinburgh Monsoon/Accessorize **26ft 9”(8.15m)41ft 1”(12.53m)Ground floorBasementTotal9361,6192,55586.95150.4237.36***1,006 sqft (93.46 sqm)*A reduced area of 789 sqft is stated in the Lease. ** Return frontage onto 1 South David Street of 41ft 1” (12.53m). *** Includes end allowance of 5% for return frontage.Tenancy ScheduleAddress Tenant LeaseStartLeaseExpiryNext RentReviewRent (Zone A/ sqft) ERV (Zone A/sqft) Comments44 Princes Street Lush Retail Limited t/a Lush 01-10-98 30-09-23 29-09-13 £115,000 (£217/sqft) £113,520 (£215/sqft) FRI Lease45 Princes Street /1 South St David StreetMonsoon Holdings Limited t/aAccessorize29-09-97 28-09-22 29-09-12 £167,500 *(£210/sqft) £174,795 (£215/sqft) FRI Lease. The Lease provides two options asto how to value the property at review. The firstoption is to value the two shops to a ‘marketvalue’. The second option is to value 45 PrincesStreet to a ‘market value’ and in respect of 1South St David Street a formula is stated in theLease to derive a ‘market value’ based on areduced area of 789 sqft.46 Princes Street Monsoon Holdings Limited t/aMonsoon08-10-90 07-10-15 28-08-10 £188,500 (£187.37/sqft) £216,300 (£215/sqft) FRI Lease. Review outstanding. Notice served.The review will be left for the purchaser tonegotiate. There has been no negotiations withthe tenant in respect of this matter.Total £471,000 £504,615* A Zone A rate of £210/sqft was agreed at the last review.
Offers Over £7,500,000TenureHeritable (Scottish equivalent of English Freehold).CovenantMonsoon/AccessorizeMonsoon/Accessorize is a design led retailer operating twohighly successful chains – Monsoon and Accessorize. Monsoonwas founded in 1972 and their original focus was on clotheswith an ethnic origin. In May 1999 Monsoon launched its firstshop in Kings Road, London and since then has expandedrapidly from its London base. Today there are over 400 Monsoonand Accessorize stores throughout the UK. Additionally theinternational side now has over 600 outlets in 54 countriesincluding Austria, Brazil, China, Denmark and France amongstmany others.Monsoon Holdings Limited have a Dun & Bradstreet rating of 3A2representing a lower than average risk of business failure. Forthe financial year ending 29 August 2009 they reported a profit inexcess of £79 million and a tangible net worth of £8,069,434.Excellent rental growthprospects underpinned bystrong occupational demandLushLush is a handmade cosmetics company established in 1994 inPoole, Dorset. Lush produces and sells a variety of handmadeproducts, including face masks, soaps, bath bombs, bubblebars, hand and body lotions and hair treatments. Lush arean international retailer with over 600 stores in 43 countriesincluding over 90 stores in the UK.Lush Retail Limited have a Dun & Bradstreet rating of N3. Forthe financial year ending 30 June 2009, they reported a turnoverin excess of £40 million, with a loss of £3,349,268.Lush Retail Limited is a wholly owned subsidiary of Lush Limited(Parent Company). Lush Limited has a Dun & Bradstreet ratingof 3A1, representing a minimum risk of business failure. For thefinancial year ending 30 June 2009 they reported sales turnoverin excess of £21 million, a profit of £6,140,537 and a net worth inexcess of £11.2 million.ERVThe eastern end of Princes Street has become the preferredlocation for retailers seeking representation on the streetbecause of the predominance of the major stores in this areatogether with proximity to both covered shopping centres, StJames Centre and Princes Mall. Additionally, the main transporthubs of Waverley Train Station and Edinburgh Bus Stationare located in the east end of Princes Street. The proposedredevelopment of the St James Centre will only further improvethe east end of Princes Street.In our opinion, the subject properties have a total estimatedrental value of £504,615 pa which equates to a Zone A rate of£215 per sqft. Evidence includes the adjacent unit let to Swatch(42 Princes Street) which is passing off a rent at or around £230per sqft Zone A and a sub-letting to Scribbler (80 Princes Street)at circa £220 per sqft Zone A. Additionally, Vodafone are underoffer on 24/25 Princes Street at a rent which equates to over£210 per sqft Zone A. This is an inferior retailing pitch where theprevious rental tone was set at or around £165 per sqft Zone A.In the medium term, we anticipate excellent rental growth prospectsunderpinned by strong occupational demand and an ever increasingimportance of the east end of Princes Street as a retail destination.MonsoonAccessorizeLush
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