St Enoch Glasgow

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

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S

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S

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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

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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

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S

S

X

S

S IB RO

CO W

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BIRMINGHAM

M5

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CENTRAL ST

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ST ENOCH

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CE

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M42

CA

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CA

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SH

M54

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M1

M6

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MANCHESTER

ID

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LIVERPOOL

M5

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S

LEEDS

CARDIFF

LV I

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S M1

GLASGOW METRO

ROAD

BR

D

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LV I

LH

N

EA

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FOLKESTONE

ID

LL A

NEWCASTLE

M6

G

E

CR

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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.

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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).

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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

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RETAILING IN GLASGOW

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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.U12

0F.U11 1561 sqft

0F.U13

Miss Diva Colors

0F.U16

0F.U15

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

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0F.U37

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St Enoch Underground

0F.U36

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0F .U35B

0F.U66

St Enoch Underground

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Wallis

0F.U54

0F.U55

0F.U56

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< Debenhams Entrance

0F.U63

0F.U62

0F.U61

0F.U60

0F.U59

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U58

0F.U57

Ann Summers

Evans

0F.U65

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Pound World

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Cl air es

0F .U35A

Jackson the Tailor

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7 U4 ft F. q O 0s 1 22

0F.U64

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44 .U 0F

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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

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Tesco

0F.U10

0F.U32 0F.U31

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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

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1 20 F.U 05 11 sq 3 f 1 11 F.U 69 11 sq 2 ft

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1 21 F.U 29 11 sq 0 ft 11 1 .U 1F

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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