stop glasgow-city-centre-mixed-use-opportunity - Singer Vielle Sales

Glasgow City Centre Mixed Use Opportunity

Regent House | 113 West Regent Street | Glasgow  | G2 2RU

£1,350,000

offers in excess of

SOLD

Summary

  • Prominent corner location

  • Multi-let to a variety of occupiers

  • Upper floor offices with ground floor/lower ground floor pub and convenience store

  • B listed building ensuring no vacant rates

  • Asset management opportunities

  • Offers in excess of £1,350,000

  • 9.06% net initial yield

Location

Glasgow is Scotland’s largest city and the third largest city in the United Kingdom. Glasgow is located approximately 651 km (405 miles) north of London and 70 km (45 miles) west of Edinburgh. The city benefits from good road communications with the M8 Motorway bisecting the city centre providing access to Edinburgh to the east and Glasgow Airport to the west. The M8 links to the M73 and M74 Motorways at Junction 4 providing access to the north of England and the M80 Motorway which offers access to the north of Scotland.

The City is also connected to the national railway network with services to all major cities in the United Kingdom and a fastest journey time to London’s Euston of 4 hours, 31 minutes from Glasgow Central. Glasgow Airport, which is 13 km (8 miles) west of the city centre, provides direct scheduled flights to the major European centres in addition to all of the main cities in the UK.

Situation

The building occupies a prominent position within the City Centre and sits at the corner of West Regent Street and Wellington Street. Surrounding properties are predominantly multi-let office buildings. Sauchiehall Street lies approximately 2 minutes’ walk to the north of the subjects and is one of the strongest retailing pitches in Glasgow city centre. Characterised by its attractive pedestrianised section, the street boasts a number of key retail occupiers such as TK Maxx, Primark, Marks & Spencer, Boots, WH Smith and Sainsbury’s, as well as numerous other national multiples.

There is a 24 hour Q Park located 1 minute walk from the building providing 372 car spaces with metered parking on West Regent Street and Wellington Street. In addition to the numerous office occupiers nearby, the surrounding properties provide a mix of commercial uses including hotels - Hampton by Hilton, Apex and Abode Glasgow, bars and restaurants.

Description

The building comprises a B-listed corner sandstone building with hipped slate covered roof incorporating timber dormers. The upper floors are laid out as a variety of office suites all with good natural light and comprising a mix of open plan and cellular office accommodation. There is a modern door entry security system with a 5 person passenger lift and common stairwell providing access to the upper floors. All the suites, with the exception of the ground floor, have self-contained toilets and tea prep/kitchen areas.

The ground/lower ground floor comprises fully fitted bar/restaurant and lock-up retail unit trading as a convenience store.

Accommodation

The office property provides a total lettable floor area of approximately 912.02 sq.m. (9,817 sq.ft.) with an additional floor area of approximately 282.79 sq.m. (3,044 sq.ft.) for the Convenience Store and Bar properties.

Please refer to the Tenancy Schedule for a floor by floor breakdown.

Tenure

Heritable (Scottish equivalent to English freehold).

Tenancies

The property is multi-let to 10 tenants in accordance with the tenancy schedule which is available to download.

The total passing rent is £129,149 per annum.

Covenants

Bucks Bar -The tenant company of Bucks Bar Limited was incorporated prior to taking on the lease for the premises and the lease is personally guaranteed by the director Michael Bergson who also owns and operates another two restaurant premises in Glasgow.

Newsbox – This tenant company has been in occupation of the premises since 1995 and there is a personal guarantee from the director Mr. Asif Bashir. The Newsbox premises has recently been sub let by Alam Retail Limited to Mr. Sohail Kayani.

Management

The management of the building is currently undertaken by Land & Property Management who are responsible for collecting rents and the service charge as well as maintaining the day to day running of the property.

A copy of the current Service Charge Budget is available to download.

The Service Charge for the year to February 2018 is £27,870 equating to £2.84/sq ft and is fully recoverable. The agents also charge a separate management fee.

Asset Management

The property offers numerous asset management prospects including;

  • Renew and re-gear lease to The United Reformed Church (existing tenant)

  • Increase headline rental levels

  • Let vacant 3rd floor suite

  • Refurbish common areas and lift car

VAT

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

Proposal

Our client is seeking offers in excess of £1,350,000 (One Million Three Hundred and Fifty Thousand Pounds), subject to contract, reflecting a net initial yield of 9.06%, a reversionary yield of 9.48% in September 2017 and 11.04% after letting of the vacant office suites, assuming standard purchaser’s costs of 5.28%.

Investment Considerations

  1. Opportunity to acquire a whole building in Glasgow City Centre;

  2. The property is let to 10 tenants providing an investor with a diverse and low risk spread of income;

  3. Clear opportunity to enhance value and income through asset management strategies;

  4. A purchase at the asking price reflects a highly attractive net initial yield and potential reversionary yield.

Contact Us

Singer Vielle Scotland  +44 (0) 141 221 4545
Graham Waddell graham@singervielle.co.uk +44 (0) 203 701 1388
Singer Vielle  +44 (0) 207 935 7200
Neil Singer neil@singervielle.co.uk +44 (0) 203 478 9120
Dale Henry dale@singervielle.co.uk +44 (0) 203 701 1356
Richard Wolfryd richard@singervielle.co.uk +44 (0) 203 701 1353

Vendors Solicitor

Anderson Strathern +44 (0) 141 242 6068
Ken Gerber ken.gerber@andersonstrathern.co.uk

Joint Agent



Neil Munro  neil@neilmunroproperty.co.uk  +44 (0) 141 248 4447

customer service