Mercantile Dundee

100 Commercial Street, Dundee DD1 2AJ

  • Mercantile, Dundee
  • Mercantile Dundee
  • Mercantile Dundee

Mercantile Dundee

Prime location

This large venue is located in central Dundee, just off the main shopping street and within walking distance of attractions such as the waterfront and the recently opened V&A. It's therefore very well placed to take advantage of the positive changes in the area and attract footfall.

The Mercantile will be transformed into a premium bar which is able to trade strongly throughout the day. The refurbished pub will be well placed to accommodate office workers for coffee in the mornings, shoppers and office workers for lunch and an after-work crowd in the early evening. It will also become part of the circuit later at night through live entertainment.

The pub will be focused on premium all-day eating and drinking in a relaxed environment. Moving away from traditional lunch and dinner menus, sharing boards and small plates will be key elements of the food menu, alongside some traditional pub classics. A strong world beer offer will run alongside a premium cocktail menu and wine list, all of which will ensure a drinks offering that caters to all tastes and occasions.


Experienced, Ambitious Operator Wanted!

The ideal operator will have some experience of running a similar, large venue and have a vision around the calendar of events to keep things fresh. Your food offer will be reflective of your customer's needs, casual dining while they socialise, day and night.

Pub Features

  • Rolling Tenancy
  • Refurbishment Planned
  • Catering Kitchen

Trading Area & Facilities

After a full refurbishment the dining area on the ground floor will allow for 209 covers. A Juliet balcony will be added with bi-fold glazed doors to allow more natural light into the rear of the area. Reclaimed oak flooring will be introduced throughout, with the exception of a new polished concrete floor at the entrance with painted star detail, which will spill over onto the timber flooring.

A DJ booth with ladder access will be installed and the bar servery will be moved closer to the dining area. A Victorian-style penny tiled floor will be laid around the bar in white, with German beer names in black tile. Leather fixed seating will be installed, with feature flower lighting above it. Vision will be maintained through the bar by using a metal/glass screen to the back of the gantry.

After the refurbishment the dining area/mezzanine on the first floor will allow for 88 covers. The area will be retained in its current form and redecorated. It will be used for private functions, not day-to-day trading. Reclaimed herringbone timber flooring will be introduced and decorative ceilings enhanced throughout.

A stage will be added, which will be visible throughout the premises. The existing mezzanine floor level overhanging the main entrance will be stripped out, in order to create a double height space at the entrance and improved lighting will be added.

Externally, we will completely restore and redecorate the pubs impressive facia.

Applicants should be aware that all refurbishments are subject to final board approval which will be determined as part of the leasing process.

Where significant investment is made in a pub by Star Pubs & Bars, an "Investment Exemption" will be required. The exemption means that the option of a Market Rent Option lease won't be available at rent review for a period of up to seven years for this site, as per The Pub Code [2016].

Private Accommodation

There is no private accommodation at this site.

Premises Licence Details

Premises Licence Opening Hours

Mon Tue Wed Thu Fri Sat Sun
11:00 - 00:00 11:00 - 00:00 11:00 - 00:00 11:00 - 00:00 11:00 - 01:00 11:00 - 01:00 11:00 - 00:00

Financials

Annual Rent £
66,000
Estimated Annual FMOP (Licensee Profit) £
71,453
Representative HEINEKEN UK Brand Discount Per Barrel £
150
Estimated Annual Turnover £
825,796
Estimated Annual Barrelage
301

The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details).

Historical volume figures may not include purchases made through 3rd Parties.

** All figures quoted are exclusive of VAT

*** FMOP = Fair Maintainable Operating Profit

Investment

Ingoing Costs
Estimated Licensee Fixtures & Fittings Value £
35,000
Estimated Fixtures & Fittings Valuation Fee £
250
Estimated Stock Valuation £
10,000
Deposit Amount £
16,500
Rent In Advance £
1,269
Training Fee £
1,000
Estimated Designated Premises Supervisor / Manager Fee £
50
Premises Licence Fee £
180
Rates Assessment Fee £
55
Estimated Legal Fees £
650
Estimated Total Ingoing Costs £
64,954
Estimated Minimum Ingoing Costs £
23,185

In order to ensure a successful start-up, all applicants must have a minimum £10,000 un-borrowed funds.

The Estimated Licensee Fixtures & Fittings (F&F) Value assumes that the pub will be let on a Rolling Tenancy or Business Start-Up Agreement, where we own the majority of the F&F. The F&F Value for Full Repairing & Insuring Leases will be significantly more.

The calculation of the Estimated Minimum Ingoing Costs assumes a minimum deposit of 1 month's rent or £3,000 (whichever is greater) and that fixtures and fittings (F&F) are rented. The subsequent deposit build up and F&F rental costs are not included in the rent model or ongoing costs below.

Other SP&B Ongoing Charges
Estimated Annual Buildings Insurance £
2,768
Estimated Annual Maintenance Compliance Charge £
1,392
Estimated Annual Accountancy & Stocktaking Charge (including tills) £
6,108

The above figures are provided as a guide only and will be finalised as part of the commercial agreement (please download the rent model from Trading Information section for full financial details)

* All figures quoted are exclusive of VAT

** Deposit build up will be payable over a maximum of 24 months

*** Fixtures and Fittings annual rental fee should be estimated at 15% of the F&F value. The actual F&F value will be determined on the day of entry

**** Maintenance Compliance Charge relates to the fees for various statutory inspections

***** Estimated Legal Fees is a charge applied to your account by SP&B for creation of your Lease. You are required to engage and pay for your own solicitor - your solicitor's fees are not included in the above estimate

****** The above figures assume that rent is billed weekly in advance and that Star Pubs & Bars retain ownership of large fixtures and fittings. Initial costs for a Fully Repairing and Insuring lease will be higher as rent is invoiced monthly in advance and all fixtures and fittings must be purchased