106 110 SOUTH STREET ST ANDREWS KY16 9QD FOR SALE High profile office investment in one of the UK s most prestigious market towns
Investment Considerations High profile office investment in one of the UK s most prestigious market towns FRI lease to Pagan Osborne Ltd expiring June 2029 (c. 12 years unexpired) Current passing rent of 72,000 pa St Andrews is located on the east coast of Fife approximately 50 miles north of Edinburgh and 73 miles north-east of Glasgow, it is regarded as one of Scotland s finest towns and is one of the UK s leading visitor destinations. Its status as the international home of golf along with the reputation of its acclaimed university mean it is one of a handful of places in Scotland that is genuinely recognised across the world. The town has a resident population of 16,900 people (2011 census) and attracts some 666,300 visitors per annum (STEAM 2012). It is anticipated that each year visitors to St Andrews spend 98M in the town (STEAM 2012). The education sector is a major local employer comprising c. 37% of the work force with tourism accounting for a further 29% (economic impact of the University of St Andrews 2011 2012). St Andrews is well served in terms of road and rail links, connecting to the M90 motorway and beyond via the A91 and A92 and to the East Coast rail network via the nearby mainline station at Leuchars (6 miles away). A85 A85 Perth Minimum rental uplifts to 79,200 pa (June 2020) and 87,120 pa (June 2025) A84 A9 A91 A92 A91 St Andrews Offers over 1.1M (exclusive of VAT) Net initial yield of 6.21% rising to 6.83% in June 2020 and 7.51% in June 2025 (allowing for purchasers costs of 5.41%) M8 A811 Dumbarton Paisley GLASGOW M80 M73 A8 A80 M9 M80 A91 Stirling Falkirk Cumbernauld Bathgate A985 M8 M90 M9 EDINBURGH A71 A702 Glenrothes A92 Kirkcaldy Dunfermline Dalgety Bay Livingston A701 Dalkeith Tranent A68 A1 Haddington Hamilton A73 West Linton A7
Situation The subjects occupy a prominent position within the core town centre of St Andrews being located on the south side of South Street in close proximity to Madras College (South Street), the Holy Trinity Church and the connecting streets of Logie s Lane, Church Street and Queens Gardens. Together Market Street and South Street comprise the two main commercial thoroughfares in St Andrews. THE ROYAL & ANCIENT GOLF CLUB OF ST ANDREWS UNIVERSITY OF ST ANDREWS THE PROPERTY MARKET ST SOUTH ST NORTH ST ST ANDREWS CATHEDRAL Description The subjects comprise two adjoining buildings connecting at first floor level over a pend. On the west side of the pend is a traditional stone built two storey and attic building under a pitched and slated roof. This is connected at first floor to a modern, more extensive, stone built pitched and slated building. The buildings provide a combination of well-presented cellular and open plan office accommodation capable of sub-division and benefiting from profile and significant frontage onto South Street. Public access is provided at ground floor level on either side of the pend with a separate office entrance located to the open plan office extension through the pend on the east side. Five clear parking spaces are located opposite this entrance. A right of pedestrian and vehicle access prevails through the pend to a flatted development at the south of the subjects and separated by an electronically operated barrier.
Accommodation We estimate the net internal area of the property to be as follows: Description Sq m Sq ft Ground Floor 185.97 2,002 First Floor 197.94 2,131 Second Floor 44.35 477 TOTAL 428.26 4,610 Plus 5 clear car parking spaces. Ground Floor Plan First Floor Plan Second Floor / Roof Plan 2,002 sq ft 2,131 sq ft 477 sq ft INDICATIVE TILE PLAN RIGHT OF PEDESTRIAN & VEHICLE ACCESS
EPC Rating The property has an Energy Performance Rating of D. A copy of the report can be provided to interested parties. Tenancy The subjects are leased on full repairing and insuring terms to Pagan Osborne Ltd (SC226270) expiring on 17 June 2029. The current passing rent of 72,000 per annum is subject to upward only rent reviews on 18 June 2020 and 18 June 2025. The rent is to be reviewed to the higher of open market rental value or a minimum 10% increase on the previous passing rent. Mountview Investments Ltd (t/a Stonehouse Lettings), currently occupy part of the ground floor of 110 South Street on a sub-lease expiring on 31 July 2022. We estimate the current passing rent to reflect a rental rate of 14.95 per sqft adopting an adjusted net internal area of 369.63 sqm (3,979 sqft) and assuming a rental value of 2,500 per annum per car parking space. Tenure Outright ownership interest/heritable (Scottish equivalent of English freehold). Tenant Covenant Pagan Osborne is one of Scotland s leading legal, financial and property companies with over 100 members of staff and offices in Anstruther, Cupar, Edinburgh and St Andrews. Established as a traditional law firm in the 18th century, the company has expanded over the last 35 years to offer legal services, financial and tax expertise and estate agency for individuals, charities and privately held small rural and family businesses. The company recently received recognition from Investors in People for 10 years of excellence and success at the Law Awards of Scotland. (www.paganosborne.com.) For their accounts to 31 October 2016 the company reported a turnover of over 5.32M and operating profit of 296,812. Pagan Osborne have occupied the subject property continuously since 1999. Proposal We are instructed to invite offers in excess of 1.1M exclusive of VAT representing a net initial yield of 6.21% rising to a minimum of 6.83% in June 2020 and 7.51% in June 2025 (allowing for purchaser s costs based on LBTT of 5.41%). VAT We understand the property is VAT elected and therefore VAT will be payable on the purchase price. We anticipate the transaction can be treated as a Transfer of a Going Concern (TOGC). Viewing and Further Information Strictly by appointment with the sole selling agents Ryden LLP. Nick Armstrong Email: nick.armstrong@ryden.co.uk DD: 0131 473 3223 Finlay Miller Email: finlay.miller@ryden.co.uk DD: 0131 473 3210 Ryden is a limited liability partnership registered in Scotland. Messrs Ryden for themselves and for vendors or lessors of this property whose agents they are given notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants 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; (iii) no person in the employment of Messrs Ryden has any authority to make or give any representation or warranty whatever in relation to this property. June 2017.