FOR SALE PROMINENT OFFICE/RETAIL INVESTMENT OFFERS OVER 655,000 (6.26% NIY) 40-44 ELM ROW, EDINBURGH EH7 5HN Sheridan Property Consultants
Executive Summary: Rare opportunity to acquire an office/retail investment in Edinburgh s vibrant East End Let entirely to Aberdein Considine & Co Passing rent of 43,000 per annum ( 17.59 per sq ft) Brand new 10-year lease from December 2017 Extensively refurbished at significant tenant expense We are instructed to seek offers in excess of 655,000 (SIX HUNDRED AND FIFTY- FIVE THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial yield of 6.26% after allowing for purchasers costs of 4.81% including LBTT (Land Building and Transactions Tax)
Location: Edinburgh is the capital city of Scotland, located approximately 400 miles north of London and 45 miles east of Glasgow. It is one of the six cities categorised by PMA as a major city and, consequently, benefits from a significant catchment population. Road communications are excellent with the M90 located to the north, the M8 and M9 to the west and the A1 trunk road to the south which provide links to all major cities in the UK. The city is well served by the rail network, with direct and frequent services to London (Euston and Kings Cross) and Glasgow with fastest journey times of approximately 4 hour 50 minutes and 51 minutes respectively. Edinburgh also benefits from one of Britain s fastest growing airports, providing both domestic and international flights. 40-44 ELM ROAD, EDINBURGH EH7 5HN
FOR SALE Situation: The subject premises are located on the east side of Elm Row bound by Montgomery Street to the south and Brunswick Street to the north. Elm Row acts as a continuation of Leith Walk connecting the Leith and Edinburgh East region with the City Centre. Leith Walk is an arterial route both in and out of the City Centre with Elm Row occupying the southern section of Leith Walk. Within walking distance of the subjects are the mixed-use leisure and cinema complex known as The Omni Centre. The Edinburgh St James scheme, also within walking distance, is one of the largest city centre regeneration projects in Scotland s history and will see 1.7million sqft of commercial and residential space being created at a projected cost of 1billion. 2019 Proposed Tram Extension: The proposed tram extension is due to be debated by councillors at Parliament later this year. If approved, this could result in the existing tram line being extended down Leith Walk stopping at McDonald Road, Balfour Street and the Foot of the Walk ensuring excellent connectivity and accessibility to and from the subjects. Work to extend the tram line, if approved, could start in Spring 2019 with practical completion in 2021/22. Nearby occupiers include Edinburgh Central Hostel, Slumdog, Vittoria, Costa Coffee, Tanz, McCalls Tartan and Owl & Deer Café.
Description: The subjects are arranged over ground and basement levels contained within a four storey, mid-terraced, traditional stone building held under a pitched and slated roof. The property benefits from three separate glazed access doors at pavement level whilst benefiting from an extensive glazed frontage offering fantastic display space for Aberdein Considine s estate agency practice. Internally, the tenants have carried out an extensive works programme which has allowed them to create a modern, DDA compliant, open plan estate agency practice together with two large open plan sales & conveyancing rooms with back office support and three dedicated W/C facilities located towards the rear. Accommodation: We have measured the subject premises in accordance with the RICS Code of Measuring Practice 2007 (Sixth Edition) and would estimate the following approximate net internal areas: FLOOR SIZE (SQ M) SIZE ( SQ FT) Ground 175 1,884 Basement 52 560 TOTAL 227 2,444
Edinburgh Office Market: Edinburgh s office market continues to break records with another record year for office take up in the City Centre during 2017 reaching 787,000 sqft which is approximately 22% above the five-year average. Take up in the wider market reached 1.1 million sqft last year, again the strongest on record. The single biggest threat to take-up levels is the distinct under supply of suitable office space. By the end of 2017, there was only 1.1million sqft of office space available with approximately only 220,000 sqft of this considered to be of a Grade A specification. To put this into context, there is less than one year s worth of supply at average Grade A take up levels. We fully expect the distinct shortage in supply to have a strong, positive impact on rental growth for the city centre and the wider office market. Aberdein Considine & Co: Aberdein Considine was founded in 1981 in Aberdeen and has grown to become an award-winning law firm with 19 offices across Scotland and the north of England and nearly 400 staff. Aberdein Considine are specialist lawyers, independent financial advisers and property experts who act for thousands of private and commercial clients across the country. They are Scotland s largest estate and leasing agent with a national network of high street branches, including in the key cities of Aberdeen, Edinburgh, Glasgow, Perth and Stirling. Aberdein Considine is a partnership made up of 30 partners. The business is led by Managing Partner Jacqueline Law, who joined the firm in 1993. Firm history. In 2014, the firm began its expansion into other parts of Scotland and now has nine offices outwith the north-east, including England, in Newcastle s historic Cloth Market. Accounts provided up to 31 October 2015 show a turnover of in excess of 15million, a net profit after tax in excess of 3million and net current assets in excess of 4.4million.
Tenancy Information: The subjects are let entirely to The Firm of Aberdein Considine & Co from 11 December 2017 with expiry at 10 December 2027 at a passing rent of 43,000 per annum, paid quarterly in advance. The tenants are entitled to a 12-month rent free period from the date of entry. However, the vendor will top-up the rent for this period. There is a rent review on the 5th anniversary to the greater of OMRV or the rent immediately payable prior to the review date. The lease is held on Full Repairing & Insuring terms (subject to a schedule of condition). Tenure: The properties are held on heritable title (Scottish equivalent to English freehold). EPC: The subjects have an EPC Rating of G. Proposal: We are instructed to seek offers in excess of 655,000 (SIX HUNDRED AND FIFTY-FIVE THOUSAND POUNDS STERLING) exclusive of VAT. A purchase at this level would show an attractive net initial yield of 6.26% after allowing for purchasers costs of 4.81% including LBTT (Land Building and Transactions Tax). VAT: Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be dealt with by way of a Transfer of Going Concern (TOGC). Legal Costs: Each party will be responsible for their own legal costs incurred in connection with the transaction. Viewing & Further Information: Please contact the sole selling agent: Stewart Sheridan/Cathal Keane/Graeme Millar Sheridan Property Consultants 37 ONE, 37 George Street Edinburgh EH2 2HN Tel. 0131 300 0296 Sheridan Property Consultants www.sheridanproperty.co.uk Stewart: 07740 940898 email: stewart@sheridanproperty.co.uk Cathal: 07808 627224 email: cathal@sheridanproperty.co.uk Graeme: 07523 512804 email: graeme@sheridanproperty.co.uk Sheridan Property Consultants 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, reference to condition and necessary permission 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 and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate; Date of Publication: April 2018