Brochure - LSH Investment Sales

INVESTMENT SALE
High Yielding Industrial Investment
636-646 South Street • Glasgow
· Modern terrace of brick built units
· Established industrial location
· Multi-let providing active management potential
· Current net rental income of £67,475 per annum
· Our clients are seeking offers over £430,000,
reflecting a net initial yield of 15.08%
A92
A82
DUNDEE
LOCATION
M90
Glasgow is the commercial and industrial capital of Scotland and the third
largest city in the UK, with a resident population of 650,000 persons and a
regional catchment in excess of 2 million persons. Glasgow has a dynamic
and widely based economy, embracing traditional industries such as
manufacturing, engineering, shipping and brewing, along with an expanding
financial services sector.
The city has excellent road communications, linking to Edinburgh by the M8
motorway and Central / Northern Scotland via the M90 / M80. The M73 /
M74 motorways provide access to Southern Scotland and England.
M80
Firth of Forth
M9
GLASGOW
EDINBURGH
M8
A1
A68
M77
A72
Firth
of
Clyde
A83
The units are prominently located fronting South Street in the Whiteinch area
of Glasgow and lies approximately three miles from the city centre. The area is
an extremely popular trade location, serving the city centre and west end. The
property is in close proximity to the A814 Clydeside Expressway and access to
this important arterial route is available at the Northwood roundabout. The
Expressway provides easy access to and from the city centre and also to the
Clyde Tunnel, which connects the North and South sides of the river.
A697
M74
A76
A68
A7
VICTO
RIA
PAR
K
OW
CR
AD
RO
A814
DR
IVE
NO
RT
H
ST
Victoria Park
BAL
SHA
GRA
Y
BAR
TON
ROA
D
EE T
ZEL
TH S
TRE
ET
SQU
SOU
IRE
STR
ED
AVE
NUE
A814
DUM
LS
TR
EE T
SC
OT
ST
OU
N
A739
A814
DESCRIPTION
Clyde Tunnel
The premises form a modern terrace of brick built industrial units with a steel
portal frame, set beneath a corrugated pitch roof. Access to the individual
units is by means of metal roller shutter doors fronting onto a concrete
yard. Internally, the units have the benefit of 3 phase electrical supply and
fluorescent lighting. The units have a clear head height of approximately
3.5m (11ft 6in).
Glasgow
City Centre
CLY
DE
SID
E
EX
PR
ESS
WA
Y
River Clyd
e
636-646 South Street • Glasgow
COVENANT
The estate is let to a wide range of local businesses who have generally been in
occupation for a number of years.
TENANCIES
STR
EET
The current rental income is £67,475 pa after deduction of the ground rent. Rents
range from £6.41 to £7.02 per sq ft.
CUR
LE S
STR
EET
TRE
ET
DAN
STR
SERVICE CHARGE
JOR
The service charge budget for the year 2014 is £8,000. All occupational leases make
provision for the recovery of service charge.
MANAGEMENT FEES
NCH
EET
RENT
THI
ED
ZEL
L
The estate is let in accordance with the tenancy schedule. Leases are generally held on
modern repairing and insuring terms.
NOR
SOU
TH S
TRE
ET
All leases allow for the recovery of a management fee through the service charge.
Further details are available on request.
TENURE
The property is held on 3 long ground leases from the City of Glasgow District Council
for a period of 125 years from 1 August 1985. The current ground rent payable is
£9,250 pa and is subject to upward only review every 5 years to the greater of the
open market value or 12.5% of rents receivable.
JORD
ANV
ALE
AVE
N
UE
SITE
The demise of the subject property is shown outlined red on the adjacent Ordinance
Survey extract (not to scale). We calculate the site area to be approximately
0.6 acres.
MARKET COMMENTARY
The property provides scope to enhance the investment through active management to
extend the existing lease terms and the occupational tenancies.
636-646 South Street • Glasgow
TENANCY SCHEDULE
UNIT
TENANT
LEASE
EXPIRY
1
Trim Workshops Ltd
2
PASSING
RENT
GROSS INTERNAL
AREAS (SQ FT)
31/05/16
£6,950
1,028
Mr Andrew Thomas (t/a Smart
Oils Ltd)
09/04/16
£6,600
1,029
3
R L Crawford Motor Engineers Ltd
31/08/16
£6,600
1,003
4
Brian Elder Motors Ltd
07/06/16
£6,530
1,005
5
Danny McGuire (t/a FGA)
30/04/16
£6,500
973
6
Danilo Lucchi UK Ltd
31/05/16
£6,625
982
7
Danilo Lucchi UK Ltd
31/05/16
£6,595
977
8
Kenneth P Scott
31/05/16
£7,850
1,119
9
Margaret Gordon
10/11/15
£8,500
1,237
10
M. Haddad Esq
05/09/16
£6,750
1,078
11
Louise Burns
27/05/17
£5,538
852
Hoarding
Peel Advertising Ltd
02/12/15
£1,687
Long Leasehold from
Glasgow Council
28/08/2110
-£9,250
£67,475
11,283
TOTAL
TENANT
BREAK OPTION
RENT
REVIEWS
01/08/2010
636-646 South Street • Glasgow
A96
A82
ABERDEEN
A9
PROPOSAL
We are instructed to seek offers over £430,000 (FOUR HUNDRED AND THIRTY
THOUSAND POUNDS), exclusive of our client’s interest in the above property.
A purchase at this level would reflect a net initial yield after deductions of the
ground rent of approximately 15.08%.
A90
A9
The property has been elected for VAT and as such the purchase price will
attract VAT at the standard rate. However, we anticipate that the transaction
will also qualify as a transfer of a going concern (TOGC).
A92
A82
DUNDEE
VAT
All prices, premiums and rents etc. are quoted exclusive of VAT at the
prevailing rate.
M90
M80
Firth of Forth
DATA ROOM
M9
GLASGOW
EDINBURGH
M8
A68
M77
A72
A83
A1
Firth
of
Clyde
A697
M74
• Interested parties should note that all documentation is held within a
data room, access to which can be arranged through the retained agents
• All Energy Performance Certificates are available in the Data Room
• It should be noted that the vendors cannot warrant the information
provided
VIEWING INFORMATION
A76
A7
A68
For viewing and further information on this portfolio, please contact:
Ewen White
0141 226 6772
ewhite@lsh.co.uk
IMPORTANT NOTICE
Lambert Smith Hampton for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of an offer or contract; (ii) all
descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves
by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of Lambert Smith Hampton has any authority to make or give any representation or warranty whatever in relation to this property. Date of Preparation of Details: November 2015.