St Catherine’s Leisure Park, Dunkeld Road, Perth, PH1 5RGWell located leisure investment opportunity

UNIT 3 -BANNATYNE FITNESS

UNIT 2 -FRANKIE & BENNY’S

UNIT 1 -KFC

St Catherine’s Leisure Park, Dunkeld Road, Perth, PH1 5RG

Executive Summary

• A well located leisure investment opportunity

• A prominent and busy location on an established ‘out of town’ retail / leisure park, only a 7 minute walk from Perth City centre

• The units are situated opposite TK Maxx, Brantano and Sports Direct while other occupiers on the park include Bensons Beds, Halfords & PC World/Curry’s, Home Bargains, Pagazzi, Maplin and Dunelm Mill

• Comprises three detached units providing a total floor area of 3,169 sq m (34,111 sq ft) on an overall site of 1.22 ha (3.02 acres)

• Unit 1 let to Scotco (Eastern) Ltd trading as KFC on a 25 year lease expiring 16 July 2026

• Unit 2 let to The Restaurant Group (UK) Ltd trading as Frankie & Benny’s on a 25 year lease expiring 16 July 2026

• Unit 3 let to Bannatyne Fitness Ltd on a 25 year lease expiring 26 August 2026

• Total passing rent of £389,115 per annum

• Average weighted unexpired lease term in excess of 10 years

• Heritable interest (Scottish equivalent of English Freehold)

• Offers in excess of £5,050,000 (Five Million and Fifty Thousand Pounds), subject to contract & exclusive of VAT

• A purchase at this level reflects an attractive net initial yield of 7.26%, assuming standard purchaser’s costs of 6.11%

www.geraldeve.com

ST CATHERINE’S RETAIL PARK

ST CATHERINE’S LEISURE PARK

CITY CENTRE

RAILWAY STATION

DU

NK

EL

D R

OA

D

ATHOLL STREET

ST CATHERINES ROAD

Location

Perth is located in central Scotland and is the administrative centre of Perth & Kinross. Perthshire is estimated to attract approximately 1 million tourists per year with average annual spend of an estimated £188 million.

The City is approximately 34km (21 miles) south west of Dundee, 69km (43 miles) north of Edinburgh and 95km (59 miles) north east of Glasgow.

There are excellent road communications and Perth is accessed from Junctions 10, 11 and 12 of the M90 or from the A9, all of which are within 3km (2 miles) of the City centre.

Perth is served by rail services to Glasgow, Edinburgh and Inverness with a fastest journey times of 59 minutes, 1 hour 22 minutes and 2 hours 5 minutes respectively.

The closest airports include Dundee and Edinburgh with drive times of approximately 25 and 46 minutes respectively.

Situation

The properties form St Catherine’s Leisure Park on Dunkeld Road, approximately 0.8km (0.5 miles) north-west of Perth City centre. The Leisure Park forms part of the larger St Catherine’s Retail Park, a cluster of retail units surrounding St Catherine’s Road, making this an attractive destination for retail and leisure operators. TK Maxx, Brantano and Sports Direct trade from directly opposite the units, while other occupiers nearby on the park include Maplin, Dunelm, Carpetright, Home Bargains, Halfords & PC World/Curry’s.

The properties which wrap around an adjacent BP petrol station occupy a prominent trading position on the eastern side of the retail park which is highly visible and easily accessed from Dunkeld Road.

The Park is easily accessible for consumers with Perth Train station being located 1.1km (0.7 miles) to the south and the City centre less than 10 minutes’ walk.

www.geraldeve.com

M90

M90

A9

A90

A91

A92

A92

A985

A71 A720

A902

A701

A1

A915

A84

A811

A85

A91

M9

M9

M8 EDINBURGH

DUNFERMLINE

GLASGOW

STIRLING

PERTH

DUNDEE

M80M876

M90

M90

A90

A9

A9

A9

A85

PERTHST CATHERINE’SLEISURE PARK

ST CATHERINE’S RETAIL PARK

ST CATHERINE’S LEISURE PARK

CITY CENTRE

RAILWAY STATION

DU

NK

EL

D R

OA

D

ATHOLL STREET

ST CATHERINES ROAD

RAILWAY STATION

GLASGOW / EDINBURGH

INVERNESS

DUNKELD ROAD

ST CATH

ERIN

ES RO

AD

ATHOLL ROAD

Sports Direct

Brantano

TKMaxx

MaplinBensons

Currys PC World

DunelmCarpet Right

HalfordsPagazzi

Home Bargains

Retailing in Perth

St Catherine’s Retail and Leisure Park is the key out of town retail / leisure facility in Perth. Total retail warehouse / leisure space in Perth is approximately 37,347 sq m (402,000 sq ft) and St Catherine’s provides circa 30,397 sq m (327,000 sq ft) of this.

The subject provides the majority of the large out of town restaurant space in Perth and as such, this reflects a rare opportunity to purchase prime out of town restaurant / leisure park floorspace.

The total population within the Perth primary catchment area is approximately 163,000 people and the City has an expanding retail centre with a below average vacancy rate.

To the north of the City centre, the Highland Gateway retail park offers 6,875 sq m (74,000 sq ft) across its units with Tiso as the anchor tenant and other occupiers include M&S Simply Food & Aldi.

The city centre retail area comprises approximately 91,045 sq m (980,000 sq ft) across individual units and the St John’s Shopping Centre where key tenants include H&M, Poundland, Primark and River Island.

RAILWAY STATION

GLASGOW / EDINBURGH

INVERNESS

DUNKELD ROAD

ST CATH

ERIN

ES RO

AD

ATHOLL ROAD

Sports Direct

Brantano

TKMaxx

MaplinBensons

Currys PC World

DunelmCarpet Right

HalfordsPagazzi

Home Bargains

Description

The purpose built properties comprise two restaurants and a health club across three individual units with a total combined floor area of 3,169 sq m (34,111 sq ft).

Unit 1 is a fully-fitted, branded, purpose built single storey building comprising 232 sq m (2,502 sq ft) and trading as a drive-thru / sit in KFC, with the benefit of 54 standard and 2 disabled parking spaces.

Unit 2 is a fully-fitted, branded, purpose built single storey building comprising 328 sq m (3,532 sq ft) and trading as Frankie & Benny’s restaurant, with the benefit of 24 standard and 2 disabled parking spaces.

Unit 3 is a purpose built Bannatyne Health Club with a high quality fit-out comprising 2,609 sq m (28,087 sq ft). Facilities include large gym, swimming pool, health spa, fitness studios, café and salon. The premises further benefit from a very generous 107 standard, 6 disabled and 12 staff car parking spaces. There are rights for vehicular access to the rear of the premises for staff parking and servicing.

Tenancies

The property is let as follows:–

Unit 1 is let to Scotco (Eastern) Ltd trading as KFC on a 25 year lease expiring on 16 July 2026 with upward only rent reviews to open market rental value in 2016 and 2021. The passing rent is £64,400 which equates to £277.58 per sq m (£25.74 per sq ft). The lease is guaranteed by Herbel Restaurants Ltd.

Unit 2 is let to The Restaurant Group (UK) Ltd trading as Frankie & Benny’s on a 25 year lease expiring 16 July 2026 with upward only rent reviews to open market rental value in 2016 and 2021. The passing rent is £92,715 which equates to £282.67 per sq m (£26.25 per sq ft).

Unit 3 is let to Bannatyne Fitness Ltd on a 25 year lease expiring 26 August 2026 with upward only rent reviews to open market value in 2016 and 2021. The passing rent is £232,000 which equates to £88.92 per sq m (£8.26 per sq ft).

The property produces a total passing rental of £389,115 per annum.

Tenure

Heritable interest (Scottish equivalent of English Freehold).

www.geraldeve.com

BANNATYNE FITNESS

FRANKIE & BENNY’S

KFCBP

Covenant status

Scotco (Eastern) Ltd (Company Reg No: SC 377269) operate the restaurant as a KFC franchise. KFC serves more than 12 million customers each day in 115 countries and territories around the world and approximately 75% of KFC stores in the UK are operated by franchisees. The Tenant has a D&B Rating of N 2 which represents a lower than average risk of business failure.

Herbel Restaurants Ltd (Company Reg No. NI 014639) provide a guarantee for the Scotco (Eastern) lease. They are a major franchise operator throughout the UK.

The Restaurant Group (UK) Ltd (Company Reg No: 00894426) operates over 470 restaurants and pub restaurants and their principle brands are Frankie & Benny’s, Chiquito, Coast to Coast, Garfunkel’s, Home Counties Pub Restaurants and Brunning & Price.

The Tenant has a D&B Rating of 5A 1 which represents a minimum risk of business failure.

Bannatyne Fitness Ltd (Company Reg No: 03287770) is the largest independently owned chain of Health Clubs in the UK. It forms part of the Bannatyne Group which also includes Bannatyne Hotels and Bannatyne Spa.

The Tenant has a D&B Rating of 5A 1 which represents a minimum risk of business failure.

EPC

EPCs are available on request.

VAT

The property has been elected for VAT.

www.geraldeve.com

Proposal

We have been instructed to seek offers in excess of £5,050,000 (Five Million and Fifty Thousand Pounds), subject to contract & exclusive of VAT, which reflects an attractive net initial yield of 7.26%, allowing for standard purchaser’s costs of 6.11%.

Contact details

For further information, contact –

Sven Macaulay Richard Linessmacaulay@geraldeve.com rlines@geraldeve.comTel. +44(0)141 227 2364 Tel. +44(0)20 7333 6274

Louise Walls Elliot Cumminglwalls@geraldeve.com ecumming@geraldeve.comTel. +44(0)141 227 2362 Tel. +44(0)20 7333 6438

Conditions under which these particulars are issued

All details in these particulars are given in good faith, but Gerald Eve LLP for themselves and the Vendors/Lessors of this property for whom they act give notice that:-

1. These particulars do not and shall not constitute, in whole or in part, an offer or a contract or part thereof, and Gerald Eve LLP have no authority to make or enter into any such offer or contract.2. All statements contained in these particulars are made without acceptance of any liability in negligence or otherwise by Gerald Eve LLP, for themselves or for the Vendors/Lessors.3. None of the statements contained in these particulars is to be relied on as a statement or representation of fact or warranty on any matter whatsoever, and intending purchasers must satisfy themselves by whatever means as to the correctness of any statements made within these particulars.4. The Vendors/Lessors do not make, give or imply, nor do Gerald Eve LLP or any person in their employment have any authority to make, give or imply, whether in these particulars or otherwise, any representation or warranty whatsoever in relation to the property.

This statement does not affect any statutory rights you may have nor does it intend to limit Gerald Eve’s liability which cannot be excluded or limited by law. Particulars issued September 2015