Case Study | Perth
Perth was acquired in 2011, the aim of this project was to turn a building being used by an industry in decline, in this case an arcade, into an investment which creates secure long term income.
Purchase Price: £250,000
Current Value: £490,000
Current Profit: £240,000
Rental Income: £40,000
The original business in this property was an arcade/gaming centre (a rapidly declining industry at the time of purchase). Although profitable, the sector has been affected by regulatory changes and decreasing discretionary consumer spend.
However, the tenant secured for this property is in fact in the same sector as the previous, however, they are a national chain and have thousands of shops across Europe.
The business and the freehold was purchased from the administrators as a going concern and transformed into an investment producing Secure Long Term Income “SLTI”, by creating a long-term Institutional FRI lease with a National operator on a 15 year term. The tenant extensively refurbished the property and has recently applied for landlord’s consent to spend over £100,000 on a complete revamp providing their state of the art new gaming product offering to the local community.
Taylor Capital not only seeks to generate income for investors, but our strategies focus on the reciprocal effects of regeneration and re-profiling of the town centre and the positive effects on local communities.
The property in Perth sits in a tremendous location on Scott Street, as it stands side by side against other high street brands. Many brands have transitioned from the main expensive pedestrianised street to the secondary location that is Scott Street where the local bus stops are housed that provides a steady stream of daily footfall.
The increase in value and high-quality lease arrangements with long term national brands hugely reduces risk and creates a lowly geared investment that will survive and thrive during the next economic correction.
|Address||39-40 Scott Street, Perth, Scotland|
|Acquisition Date||June 2011|
|Lease Length||15 years|