Let to tj Morris Ltd, t/a Home Bargains
Highly Secure Income – Pre-Tax Profits £233m, Net Assets £1,086m
Let on a lease expiring in January 2028
Property forms part of a £27 million state-of-the-art development
Situated below Airdrie Community Health Centre, servicing 4,500 daily visitors
£2,100,000, subject to contract
8.5% net initial yield
Airdrie is an established commuter town located approximately 16 km (10 miles) east of Glasgow and 48 km (30 miles) west of Edinburgh. The town has a population of approximately 36,500 people with 80,000 people living within a 10-minute drive. The town draws extensively from the wider North Lanarkshire catchment with 428,000 people within a 20-minute drive.
Airdrie benefits from easy access to the M8 Motorway, which provides access to central Scotland via the wider motorway network. The M8 has recently undergone a substantial upgrade as part of the M8, M73 and M74 Motorways improvements project. Airdrie train station is located within the town centre, only a few minutes’ walk from the property. Airdrie is currently seeing considerable population growth with new housing developments emerging in recent years, most notably in Chapelhall, Rochsoles and Glenmavis.
The property occupies a prime location on Graham Street, the main pedestrianised retailing street in the town. Surrounding occupiers include Costa, Boots, Greggs, Iceland, Peacocks, wh Smith, Superdrug and Card Factory.
The upper floors are occupied by Airdrie Community Health Centre servicing 4,500 daily visitors. Airdrie Retail Park is located immediately to the south of the subjects and form the main retail warehousing offering in the town. Tenants include Tesco, McDonalds, Argos, Halfords, The Food Warehouse and B&M. A 50,000 sq ft Morrisons and Aldi are also within short walking distance.
The property forms part of a £27,000,000 mixed use development completed in June 2012. It includes the Airdrie Community Health Centre, a state-of-the-art health centre for nhs Lanarkshire. Home Bargains occupy the majority of the ground floor along with part of the basement. The health centre is owned by the Scottish Government. Plans are available to download.
The unit has extensive glazed frontage onto Graham Street. The front of the unit is used for sales with rear for storage, WC and staff accommodation. A basement area is utilised for storage and deliveries to the service entrance.
We are advised that the property provides the following Gross Internal Areas:
Ground Floor 1,579.86 sq m 17,006 sq ft
Basement 221.75 sq m 2,387 sq ft
Total 1,801.61 sq m 19,393 sq ft
Heritable (Scottish Equivalent of English Freehold).
The property is let to tj Morris Ltd (t/a Home Bargains) on a Full Repairing and Insuring lease for a term of 15 years from 07th January 2013, expiring 06th January 2028 (approximately 8.5 years unexpired lease term).
The current passing rent is £190,000 per annum (£9.80 per sq ft / £105.46 per sq m) and is subject a rent review on 07th January 2023. The rent review mechanism is upwards only to the lower of the open market rent and £231,608 per annum. The rent cannot fall below the current passing rent of £190,000 per annum.
The passing rent of £190,000 per annum reflects £9.80 per sq ft which compares favourably to the nearby Airdrie Retail Park where rents in excess of £15.00 per sq ft have been achieved.
The property forms part of a larger building for which it has a share of communal charges. The current service charge apportionment for the subject property is £12,274. There is a service charge cap which increases annually in line with rpi. The 2018-2019 cap is £13,432. The service charge based on the current budget is therefore fully recoverable. A copy of the service charge budget is available to download.
tj Morris Limited (Co. No. Sc 01505036) has reported the following figures:
30th June 2018 30th June 2017
Turnover £2,143,267,097 £1,869,198,381
Pre-Tax Profits £202,700,562 £168,226,007
Net Assets £911,755,756 £747,814,458
Established over 40 years ago, tj Morris Limited is the largest independent grocer in the country and is one of the largest privately-owned companies in the UK. According to its website it trades from over 500 stores employing more than 22,000 staff. Tj Morris Limited have an Experian credit score of 100/100 indicating very low risk of failure. For further information see .
The property has been registered for VAT. It is anticipated that the transaction will be treated as a Transfer of a Going Concern (togc).
We are instructed to seek offers in the region of £2,100,000 (Two Million, One Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 8.52%, assuming purchaser’s costs of 5.84%.
Highly secure income – let to tj Morris Ltd (Pre-Tax Profits £233m, Net Assets £1,086m);
Attractive unexpired lease term, expring in January 2028;
The property occupies a prime location within the town centre;
The property forms part of a £27 million state-of-the-art development and is situated below the Airdrie Community Health Centre, servicing 4,500 daily visitors;
Low passing rent of £190,000 per annum reflecting £9.80 per sq ft;
A purchase at the asking price reflects an attractive net initial yield.
For full details please visit our website or view PDF brochure below
* Sizes listed are approximations. Please contact the agent to verify actual sizes.