59 Years - Long Let Investment to Mitchells & Butlers
The Three Lums | Lewis Road | Aberdeen | AB16 6TG
subject to contract
Highly prominent roadside location in densely populated residential area
Secure income – let to Mitchells & Butlers Retail Ltd (Net Assets of £3.18 billon)
In excess of 59 years unexpired with no breaks
Heritable Interest (Scottish equivalent of Freehold)
Car park with approximately 25 spaces
Fully fitted restaurant and bar
Large site offering potential future redevelopment opportunity, subject to planning
£750,000, subject to contract
7% Net Initial Yield
Potential reversionary yield of up to 9%
Aberdeen is located approximately 180 km (125 miles) north of Edinburgh and 210 km (145 miles) north east of Glasgow. The city benefits from excellent road communications with the A90 and A96 offering direct links to Dundee and Inverness. In addition, the city is connected to the national rail network with direct services to London Kings Cross. Aberdeen International Airport is approximately 9.6 km (6 miles) north-west of the city centre and is used by around 3 million passengers a year for scheduled and charter flights.
Aberdeen City & Shire is the third largest city region in Scotland and home to almost 0.5 million people of which 230,000 live in Aberdeen. Aberdeen is one of the world's top five energy cities and has been ranked as one of the UK's most competitive cities. The City benefits from innovative industries, excellent academic and research capabilities and a highly skilled workforce. There is continued investment initiatives into energy, life sciences, tourism, hospitability, agriculture, digital and the creative sectors (Source: Aberdeen City Council).
The property occupies a prominent position fronting Lewis Road and is directly next door to a Co-op convenience store. The property is situated within the residential district of Sheddocksley which is 3.5 miles (5.6 km) from Aberdeen City Centre. There is a bus stop outside the property.
Lewis Road leads to the A944 Lang Stracht which provides direct access to the City Centre and the surrounding locations.
Sheddocksley represents a public housing estate developed in the 1950’s. Many homes are now owned by their occupants under right-to-buy legislation. The property is in the heart of this densely populated residential district and is the local gastro pub serving competitively priced food and drink.
The immediate and surrounding areas are occupied by a range of businesses and establishments including Woodend Hospital, a range schools, car showrooms, a Tesco Superstore and local and national retailers.
The property comprises a single storey premises and car park and is fitted out to one of Mitchells and Butlers brands called ‘Sizzling Pubs’.
The property benefits from a fully fitted kitchen with extraction, two seperate bars, a large dining area, lounge area with seating, a cellar room, staff room and office.
The property has been measured by BKR Floor Plans and provides the following accommodation:
|Frontage||34.59 m||113.6 ft|
|Gross Internal Area||433.94 sq m||4,671 sq ft|
|Net Internal Area||346.61 sq m||3,731 sq ft|
The site area is approximately 0.5 acres.
A set of floor plans are available to download and will be re-addressed to a purchaser at a cost of £795 + VAT.
Heritable Interest (Scottish equivalent of Freehold).
The property is let to Mitchells & Butlers Retail Limited, on a full repairing and insuring lease for a term of 99 years from 15th May 1980 and expiring on 14th May 2079, therefore there are in excess of 59 years unexpired on the lease.
The annual rent payable is 7% of gross turnover. This is subject to a collar of £55,252.76 and a cap of £71,039.26.
The current rent is £55,252.76 per annum.
The cap and collar is subject to review every 5 years should the landlord or tenant instigate it. The cap and collar has only ever been reviewed upwards. Neither party instigated a review in May 2020 so the current cap and collar is fixed until 14th May 2025.
Contact us for further information on the what the cap and collar review is based on.
Mitchells & Butlers was established in 1889 and is one of the largest and most established leisure operators in the UK with over 1,747 restaurants, pubs and bars. Some of their brands include All Bar One, O’Neills, Toby Carvery, Browns, Miller & Carter, Vintage Inns and Harvester. In their most recent accounts (Sept-2019), the company reported a Turnover of £2.32 bn and adjusted operating profit of £317m. For more information visit: www.mbplc.com.
The tenant, Mitchells & Butlers Retail Limited (00024542) is a wholly owned subsidiary of Mitchells and Butlers Plc and has reported the following figures:
|28th September 2019||29th September 2018||30th September 2017|
|Turnover||£1,67 bn||£1.62 bn||£1.65 bn|
|Net Assets||£3.18 bn||£3.05 bn||£2.98 bn|
The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).
We are instructed to seek offers of £750,000 (Seven Hundred and Fifty Thousand Pounds), subject to contract. This price reflects a net initial yield of 7% and a potential reversionary yield of up to 9%, assuming purchasers’ costs of 5.27%.
Please note that a purchaser will be re-charged the cost of searches which are provided in the data room.
Please note a purchaser will be charged a Transaction Fee of £5,000 + VAT.
59 years unexpired with no breaks;
The property occupies a prominent roadside location;
Securely let to Mitchells & Butlers (Pre-Tax Profits, £161m and Net Assets, £3.18 bn);
Large site with future redevelopment potential, subject to planning;
The property has a 35 metre frontage;
The property is situated in the heart of a residential area;
Attractive lot size for an investor.
Attractive net initial yield of 7%
Potential reversionary yield of 9%
|Young & Partners||+44 (0) 138 372 1621|
|John Cassellsfirstname.lastname@example.org||+44 (0) 138 374 5791|