SECURE INCOME OFFICE INVESTMENT WITH FIXED UPLIFT FOR SALE Westpoint, Edinburgh West Office Park, South Gyle, Edinburgh, EH12 9DQ
INVESTMENT SUMMARY Heritable interest (Scottish equivalent ofenglish freehold). Edinburgh is the second largest financialcentreinthe UK behind London. Edinburgh WestOffice Parkforms part of Scotland spremier outof town business destination. Westpointoccupiesa prominentpositionon the Park smainthoroughfare Edinburgh WestOffice Parkoffers a significantdiscountto EdinburghCity Centrewhere rents havenow reached 32.00persq ft.. Amodern,self-containedofficebuildingtotalling 35,597 sq ft which has been comprehensively refurbished. The property has beena businesscentre since2001 and trades strongly with 100% occupancy. 106 car parking spacesprovidinga ratio of 1:332 sq ft. Let to Edinburgh South GyleCentreLtd (trading asregus) with a guaranteefrom Regus Plc The lease term expires 10 April 2027 (8.6 yrs unexpired) Totalincome of 639,408 per annum ( 17.96 psf) with a fixeduplift in April 2025 to 703,348 per annum ( 19.75psf) Offers in excess of 7,480,000 (Seven Million, Four Hundred & Eighty Thousand Pounds) subject to contract and exclusiveof VAT. Apurchase at this levelreflects an attractive net initial yield of 8.00% assuming purchaser scostsof 6.80% anda low capitalvalueof 210 persqft. The yieldincreases to 8.80% in April 2025.
EDINBURGH WAVERLEY SOUTHGYLE 4 QUEENSFERRY FIRTH OFFORTH Westpoint is situated on Edinburgh West Office Park whichformspart of thesouthgyle commercial district on the western edge of EdinburghCityCentre. SouthGyleisrecognised as one of Scotland s premier out of town business locations with Edinburgh West Office Park and the adjacent Edinburgh Park accounting for the majority of thecommercial accommodation. M9 M90 KIRK LISTON NEWBRIDGE EDINBURGH AIRPORT A720 2 DAVIDSON S MAINS South Gyle SOUTH GYLE MURRAYFIELD SIGHTHILL GRANTON A70 A702 1 2 LEITH 0 A701 A7 A1 A199 RESTALRIG EDINBURGH A1 A6095 NEWHA A1 M8 RATHO EDMONSTONE A7 CONNECTIVITY COLINTON A702 BRAIDHILLS A772 A72 A70 South Gyleis situated just sixmileswest of Edinburgh City Centreandbenefits from excellent communicationlinks to the CityBypassandits junctionwith the M8 motorway. Edinburgh Airport is just two miles west and is directly accessed via the M9and /M90. South Gyle and Edinburgh Park railway stations are both within walking distance of the property and provideregular services to Edinburgh City Centre and other key towns in Scotland. The property also benefits from access to the Edinburgh Trams network. AMENITIES CURRIE Edinburgh West Office Park benefits from a range of amenities in closeproximity includinggyleshopping Centre, 0.5 miles from the Park. Extending to over 300,000 sq ft, the shopping centre is home to a number of national retailers includingmarks & Spencerand Morrisons.To the south of the Park is Hermiston Gait Retail Park, home to Tesco,B&QandTKMaxx. A720 A701 3
DESCRIPTION The building is arrangedover ground andtwo upper floors totalling 35,597 sq ft andprovidesthe following internal specification: Impressive fullheight reception area Suspendedceilings Air conditioning VDU compatiblelighting Flexible floor plates, capableofsubdivision Twopassengerlifts serving allfloors Male,female and disabledwc's on eachfloor Shower facilities on the second floor 106 car parkingspacesproviding a ratio of 1:332 sq ft Totalsite areaof 1.62 acres(0.66hectares) Floor Use Sq m Sq Ft Second Office 1,095.70 11,794 First Office 1,083.69 11,665 Ground Office 1,093.49 11,770 Ground Reception 34.18 368 Total 3,307.06 35,597 Westpoint has been extensively fitted out as serviced office accommodationwith de-mountable partitioningto create a series of flexible offices and meetingrooms. Additionaloccupier benefits include: Category5e cabling Commsroom Broadbandconnectivity Programmabledigital phone network High quality kitchen/breakout areas Highly secure environment Staffed reception
TENANCY The property is let in its entirety to Edinburgh South Gyle Centre Ltd (trading as Regus),with a guarantee from RegusPlc,on a full repairingand insuringleasefor a term of 20 years commencing 11 April 2001 and expiring 10 April 2021. The tenant has entered into a Minute of Variation and Extension of the lease which extends the expiry date to 10 April 2027 (8.6 years term certain). The Current total rent is 581,280 ( 16.33psf) with a fixed uplift in April 2020. The Vendor will top up the rent to 639,408 per annum which equates to 17.96 per sq ft overall. There is a fixed uplift on 10 April 2025 to 703,348.80 per annum which equates to 19.76 per sq ft. There is a cap on the guarantor s liability up to the 15 th April 2020 which is currently 871,920. From the 15 th April 2020 this cap will be 479,556, which will expire on the 25 th April 2025. REGUS COVENANT Edinburgh South Gyle Centre Ltd is a wholly owned subsidiary of Regus Plc, the world s largest providerof flexible workspacesolutions.foundedin 1989, Regus now has almost 3,000 business centres in 120 countries and is listed on the LondonStockExchange. Forthe year ending31 December2017, RegusPlcreported a Sales Turnoverof 2.3 Billion and an operating profit before taxes of 177.2m Further information canbe found at www.regus.co.uk 5
TENURE Heritable interest (Scottish equivalent ofenglish freehold). EPC The property has an EPC rating of B CAPITAL ALLOWANCES The benefit of any unclaimed capital allowances could be made available to a purchaser.further information is available on request VAT The property is elected for VAT. However, it is anticipated that the sale will be treated asa Transfer of a GoingConcern(TOGC).
PROPOSAL Offers in excessof 7,480,000 (Seven Million, Four Hundred & Eighty ThousandPounds), subject to contract and exclusiveof VAT. Apurchaseat this levelreflects an attractive net initial yield of 8.00% assuming purchaser scostsof 6.80% anda low capital valueof 210 per sqft. The yieldincreasesto 8.80% in April 2025. CONTACT For Further information or to arrange a viewing of the property, Please Contact: Sammy Kingston E: Sammy@harrispi.co.uk DD: 0203 911 2761 Jonathan Harris E: jonathan@harrispi.co.uk DD: 0203 841 5185 DISCLAIMER: Harris Associates give notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Harris Associates or their associated agents has any authority to make any representation or warranty whatsoever in relation to this property. September 2018