Topgolf & Puregym Glasgow_Property for Sale

10 Duchess Place, Rutherglen, G73 1DR, UK

Topgolf & Puregym Glasgow

Asset description

Glasgow is the largest city in Scotland with a population of 635,000, increasing to 1.84 million people within the Greater Glasgow conurbation.
The property benefits from a catchment of 1,275,000 within a 20-minute drive time.
Large prominent site situated approximately 4 miles from Glasgow city centre on Junction 2 of the M74, making it one of Scotland’s most accessible locations, with unrivalled motorway access to the M74, M8, M73, M80 and M77.
The property itself comprises a best-in-class new-build entertainment and driving range leisure facility occupied by Topgolf, as well as a new-build standalone industrial unit let to PureGym.
Topgolf's premises extends to 48,369 sq ft, arranged over 3 floors, providing 72 driving bays on a 12.09-acre site.
PureGym's premises extends to 13,350 sq ft across ground and mezzanine levels on a 0.71 acre site.
Combined floor areas of 61,719 sq ft upon 13.98 acres.
Excellent sustainability credentials include EPC ratings of B (19) at Topgolf and A+ (4) at PureGym.

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Attributes

Tenants

Topgolf Ltd & PureGym Ltd

Asking price

CA$46,989,000

WAULT

17 years

Total Annual Rent

CA$3,510,155.47

Year built

2022

Building area net

5,734 sm

Media

Investment highlights

Fully-let to Topgolf Limited and PureGym Limtied on FRI terms, with Topgolf expiring on 13 November 2042, and PureGym expiring 12th January 2040 providing a term certain of 17 years.
Both tenants provide Dun and Bradstreet Ratings of 5A2.
Topgolf is let on a 20-year lease, providing an unexpired term certain of 17.7 years at a passing rent of £17,710,000 p.a., subject to 10% rental uplifts effective every 5 years.
PureGym is let on a 15-year lease at a passing rent of £175,500 p.a., subject to a break option on 12 January 2035, providing an unexpired term certain of 10 years.
Total passing rent of £1,885,500 p.a. with an income profile of 91% secured to Topgolf and 9% to PureGym.

We are instructed to seek offers in excess of £25,240,000 (Twenty Five Million Two Hundred and Forty Thousand Pounds) exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.00%, allowing for standard purchaser's costs based on LBTT.

A purchase at this level would provide a reversionary yield of 7.63% in November 2027, 8.40% in November 2032 and 9.24% in November 2037 (adopting Oxford Economics’ CPI projections for PureGym).