Glasgow leisure destination handed £5m price tag
A leisure destination in Glasgow city centre has been placed on the investment market with a price tag of £5,000,000, reflecting a net initial yield of 11.38%.
Merchant Square is Glasgow’s only exclusively indoors leisure destination. The scheme, located in the Merchant City area, comprises 11 licensed units extending to 683,62 sq ft, with one additional unit which is currently unlet.
Tenants include Mitchells & Butler, Momo Hub, Vodka Wodka, Sono, Table Twenty Eight, The Tap Yard, Delictoria, Bar Soba, Nomad Escape, NQ64, and Lochy’s.
The asset produces a rental income of £606,583 per annum and has a weighted average unexpired lease term of 12 years to expiry and nine years to break.
Merchant Square also features a 7,610 sq ft cobbled courtyard, which is currently used to host events. There is potential for the area to be altered to create a new lease to gain additional rental income or an opportunity to operate the space directly.
Nearby developments include Candleriggs Quarter, a £300m mixed-use community which sits directly opposite Merchant Square, as well as the University of Strathclyde’s Technology and Innovation Centre, The Social Hub, offices at 110 & 100 Queen Street, Collegelands, and The Garment Factory.
Sheridan Keane Real Estate Investment and Creevy Darroch have been appointed to find a suitable buyer.