BROUGHTON HOUSE · for sale multi-let office investment with excellent development potential offers in excess of £1,000,000 (7.64% niy & £96/sqft capital rate) broughton house 31

FOR SALEMULTI-LET OFFICE INVESTMENT

WITH EXCELLENT DEVELOPMENT POTENTIAL

OFFERS IN EXCESS OF £1,000,000 (7.64% NIY & £96/SQFT CAPITAL RATE)

BROUGHTON HOUSE31 DUNEDIN STREET EDINBURGH EH7 4JG

B900

Road

Broughton Road

Broughton Road

Dunedin Street

Logie Mill

BroughtonRoad Park

LOG

IE MILL

DUNEDIN STREETD

UNEDIN

STREET

B900

B

ROUGHTON ROAD

B900

EXECUTIVE SUMMARY • MULTI-LET OFFICE BUILDING WITHIN WALKING

DISTANCE OF EDINBURGH’S CITY CENTRE;

• 9 OFFICE SUITES AT A RANGE OF SIZES AND EXTENDING TO 967.9 SQM (10,418 SQFT) ON A SITE OF 0.16 ACRES;

• FULLY LET TO BINAP, RANDOLPH HILL NURSING HOME & WORLD MISSION AGENCY;

• TOTAL PASSING RENT EQUATES TO £80,683 PER ANNUM;

• LOW AVERAGE PASSING RENTAL RATE OF £7.74/SQFT;

• 86.83% OF THE INCOME SECURED TO DUN & BRADSTREET CREDIT RATED 4A1 COVENANTS;

• EXCELLENT ASSET MANAGEMENT POTENTIAL;

• POTENTIAL FOR REDEVELOPMENT OF THE ENTIRE SITE FOR ALTERNATIVE/RESIDENTIAL USE (SUBJECT TO PLANNING);

• WE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF £1,000,000 (ONE MILLION POUNDS STERLING) EXCLUSIVE OF VAT.

• A PURCHASE AT THIS LEVEL WOULD REFLECT AN ATTRACTIVE NET INITIAL YIELD OF 7.64% AND A CAPITAL RATE OF £96/SQFT, ASSUMING STANDARD PURCHASER’S COSTS OF 5.65%, TO INCLUDE LAND & BUILDINGS TRANSACTION TAX (LBTT).

BROUGHTON HOUSE | EDINBURGH

01BROUGHTON HOUSE

31 DUNEDIN STREET EDINBURGH EH7 4JG

QUEENSFERRY ROAD

DEAN PARK CRESCENT

G RA N G EC RI C KE T

C LU B

WEST APPROACH ROAD

GORGIE ROAD

ANGLE PARK TERRACE

CRAIGLEITH PARK

DALRY

ROAD

DUNDEE STREET

POLWORTH GARDENS

MERCHISTON AVENUE

VIEWFORTH

RAVELSTON TERRACE

CHESTER STREET

BROUGHTON ROAD

RO YA L B O TA N I CG A RD EN S

Water of Leith

HaymarketStation

FOUNTAINBRIDGE

SEMPLE ST

L A U R I S T O N P L A C E

LONDON ROAD

LEIT

H WALK

MCDONALD ROAD

PILRIG STREET

REGENT ROAD

CALTON RD

CANONGATE

ST ANDREW

BROUGHTON ST

SQUARE

ELM

ROW

EAST

ER R

OAD

HOLYROOD ROAD

HOLYROOD PALACE

THE SCOTTISH

PARLIAMENT

TORPHICAN ST

GRO

VE ST

WEST APPROACH ROAD

NICO

LSON

STREET

MELVILLE DRIVE

MEADOWS

ST LEON

ARD

S

BRUNTSFIELD LINKS

UNION STREET

MELVILLE ST

WEST COATES HAYMARKET TERRACE

ORCHARD BRAE

LEARMO

NTH

AVE

COM

ELY BANK AVE

LEARMO

NTH

GRO

VE

LEARMONTH GDNS

S LEARMONTH GDNS

CHAMBERS STREET

Edinburgh Castle

HAN

OV

ER ST

HILL STTHISTLE ST

THISTLE ST

EAST LONDON STREET

GREAT KING ST

FETTES ROW

RODNEY STREETEYRE PLACE

BRAN

DO

N ST

HENDERSON ROW

GLENOGLE ROAD

EAST CLA

REMONT STREET

INVERLEITH

ROW

ST STEPHEN ST

ST VINCEN

T ST HO

WE ST

DU

ND

AS STR

EET

M

CA

ST

LE STQUEENSFERRY ST

CHARLOTTE

SQUARE

ROSE STROSE ST

ROSE ST

THE M

OU

ND

HIGH STREET

ST JAMESCENTRE

BusStation

Waverley

Station

MORRISON ST

SHANDWICK PLACE

MAITLAND ST

BREAD ST

LOTH

IAN

ROA

D

PRINCES STREET

PRINCES STREETGEORGE STGEORGE ST

GEORGE STQUEEN STREET

ALBYN PLACE

P C E

HERIOT ROW

NORTHUMBERLAND STREET

CUMBERLAND STREET

GLO

UCESTER LAN

E

OR

Y L AA

YORK PLACE

NO

RTH BRID

GE

COMELY BANK RAEBURN PLACE

CIRCUS LANE

CASTLE TERR

GEO

RGE IV BRID

GE

PLEASANCE

WARRISTON ROAD

WEST PORT

GRASSMARKET

LADY LAWSON ST

BRUNTSFIELD PLACE

ROSEBURN TERRACE

QUEENSFERRY ROAD

1

2

3

4

5

BROUGHTON HOUSE

EDINBURGH HAS A POPULATION OF 495,000 WITHIN THE CITY, INCREASING TO 1.6 MILLION WITHIN THE LOTHIAN CATCHMENT AREA. IT IS THE MOST PROSPEROUS REGIONAL CITY IN THE UK AND ITS WORKFORCE IS ONE OF THE MOST HIGHLY EDUCATED IN THE UK WITH 45.3% HOLDING A DEGREE OR PROFESSIONAL QUALIFICATION.

The city’s financial and business centre is extremely diverse and the city is home to more FTSE 100 companies than any other city in the UK outside London. The city weathered the financial uncertainties of recent years well, with a number of new entrants gaining significant representation as well as existing companies expanding. New entrants include Virgin Money, Tesco Bank, Amazon, Avaloq and the Green Investment Bank.

Financial services continue to be a major facet of the Scottish economy and account for up to one in ten Scottish jobs. Edinburgh also has a world class reputation for enterprise in areas such as information technology and software development, biotechnology and life sciences.

The city has a strong educational heritage, boasting four universities, providing an educational hub for over 1,000,000 students, including more than 156,000 international students, making it the most popular destination for overseas students wishing to study at universities in the UK outside London.

The city benefits from excellent communication links; Edinburgh Airport is the fifth largest international airport in the UK and is located 8 miles west of the city centre. Over 50 airlines operate from Edinburgh Airport which fly to 120 destinations across 29 countries.

Furthermore, the city boasts 2 iconic train stations, Waverley and Haymarket, both of which are a short walking distance from Princes Street. Both Stations provide direct services to and from London and are easily reached from other main English towns and cities as well as providing services to all major Scottish centres. The new tram system commenced operations in May 2014 and connects the Airport and the west of Edinburgh to the city centre.

POINT OF INTEREST DISTANCE TRAVEL TIME (WALKING)

1 Tram Stop (York Place) 0.8 miles 18 mins

2 Waverley Station 1.1 miles 22 mins

3 Broughton Street 0.6 miles 13 mins

4 Leith Walk 0.9 miles 12 mins

5 Canonmills 0.2 miles 3 miles


LOCATION


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B901 B901 B901

EYR

E P

LACE

B900

BROUGHTON R O AD

B90 0

B

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TON

RO

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MCD

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ROAD

WA

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SC

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LOG

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RO

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BE

AV

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BA

NK

PLA

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BE

AV

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HA

LL RO

AD

DUNEDIN STREET

WARRISTON R

OAD

POWDERHALL ROAD

EA

ST C

LAR

EM

OU

NT

STR

EE

TB

ELL

STR

RE

T

BE

LLE

VU

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OA

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MCD

ONALD

PLACE

CLAREMO

NT

BA

NK

ANNAND

ALE ST

3

4

2

1

6

5

BROUGHTON HOUSE

180 NEW HOMES UNDER CONSTRUCTION

BEAVERBANK BUSINESS PARK

KINGSFORD RESIDENCIESPOPPY SCOTLAND

BROUGHTON HOUSE IS SITUATED ON THE SOUTH-WEST SIDE OF DUNEDIN STREET WITHIN THE POWDERHALL AREA OF EDINBURGH LOCATED 0.8 MILES TO THE NORTH-EAST OF THE CITY CENTRE. DUNEDIN STREET CAN BE ACCESSED VIA LOGIE GREEN ROAD / POWDERHALL ROAD TO THE NORTH OR BROUGHTON ROAD TO THE SOUTH, BOTH OF WHICH ALLOW EASY ACCESS TO THE CITY CENTRE AND EDINBURGH’S WIDER REGION.

Transport links to Broughton House are excellent with north to west and north to south bus stops along Broughton Road servicing the north to west and north to south commute through the City with the No. 8,23,27 & 36 running frequent daily services and within walking distance of Broughton House.

In addition to the residential occupiers surrounding Broughton House, the area is also home to a number of commercial occupiers to include James.F.Kidd, Sixt UK, Continental Wine, Dunedin Builders Merchants, Tesco, Lidl and Costa Coffee.

POINT OF INTEREST DISTANCE TRAVEL TIME (WALKING)

1 36 Bus Stop (Gyle) 0.2 miles 4 mins

2 Canonmills 0.4 miles 6 mins

3 Tesco & Costa 0.3 miles 5 mins

4 Lidl 0.2 miles 4 mins

5 8 Bus Stop (Edinburgh Royal Infirmary) 0.3 miles 5 mins

6Water of Leith Walkway to North and North-West Edinburgh

0.5 miles 8 mins


SITUATION


03

The site offers a fantastic opportunity for any purchaser

to redevelop the site or buildings for alternative uses at a later

date, subject to planning

There are a total of 13 car parking spaces available

BROUGHTON HOUSE COMPRISES 2 INTERLINKING OFFICE BUILDINGS ON A STANDALONE SITE WITH OFFICE ACCOMMODATION COMPRISED OF A MIX OF OPEN-PLAN AND CELLULAR SPACE ARRANGED OVER LOWER GROUND, GROUND AND FIRST FLOOR LEVELS. ACCESS TO BROUGHTON HOUSE IS VIA TWO SEPARATE STEPPED, MAIN DOOR ENTRANCES WITH THE INTERNAL SPACE ACCESSED VIA TWO COMMON STAIRWELLS.

The larger offices are interconnecting for the purposes of the current tenant’s occupation but could easily be sub-divided to provide smaller suites all with centrally shared WC and kitchen facilities. All suites offer a plentiful supply of natural daylight together with fire and intruder alarm systems.

In addition to the physical space, there are a total of 13 car parking spaces available with 7 of those contained within a built-in, lower ground garage (5 clear, 2 blocked) with the remaining 6 spaces located at the front of Broughton House.

FUTURE DEVELOPMENT Broughton House is surrounded primarily residential and student housing occupiers with the commercial office and industrial space within the area having undergone significant redevelopment since the late 1990’s. Powderhall & Warriston adjoin one another on the sites of the old Football Stadium and Greyhound Track with the areas undergoing significant redevelopment in the recent past with more pipelined for the future.

The original development of Powderhall Road & Brae in 1999-2002 was developed by Bryant Homes with Powderhall Rigg developed by Miller Homes between 2002-2004. Since then, AMA Homes redeveloped the old Printworks into 19 loft styled apartments in the mid 2000’s.

More recently, Watkin Jones completed their residential and student development for 24 private dwellings and 324 student beds with the development lying adjacent to Broughton House which also incorporated a Lidl supermarket.

As of today, Artisan Homes are now on site on the old B&Q depot which will see a further 180 new homes being built together with the Kingsford Residence redeveloping the old Broughton Primary School which will house 74 apartments and has recently been completed.

It is our opinion that the property and wider site offers a fantastic opportunity for any purchaser to redevelop the site or buildings for alternative uses at a later date, subject to planning.


DESCRIPTION


04

SUITE 6A

SUITE 6

SUITE 5A

SUITE 5

SUITE 7

SUITE 2

SUITE 6A

LOWER GROUND FLOOR

GROUND FLOOR

FIRST FLOOR

SUITE 6

SUITE 4 SUITE 3

SUITE 1

FEMALEWC

MALEWC

DISABLEDWC

ST

GARAGE

FEMALEWC

FEMALEWC

MALEWC

MALEWC

STAFF KITCHEN

OFFICE

ST

ST

SUITE 6A

SUITE 6

SUITE 5A

SUITE 5

SUITE 7

SUITE 2

SUITE 6A

LOWER GROUND FLOOR

GROUND FLOOR

FIRST FLOOR

SUITE 6

SUITE 4 SUITE 3

SUITE 1

FEMALEWC

MALEWC

DISABLEDWC

ST

GARAGE

FEMALEWC

FEMALEWC

MALEWC

MALEWC

STAFF KITCHEN

OFFICE

ST

ST

SUITE 6A

SUITE 6

SUITE 5A

SUITE 5

SUITE 7

SUITE 2

SUITE 6A

LOWER GROUND FLOOR

GROUND FLOOR

FIRST FLOOR

SUITE 6

SUITE 4 SUITE 3

SUITE 1

FEMALEWC

MALEWC

DISABLEDWC

ST

GARAGE

FEMALEWC

FEMALEWC

MALEWC

MALEWC

STAFF KITCHEN

OFFICE

ST

ST

We have measured the subjects in accordance with the RICS Code of Measuring Practice (Sixth Edition) and calculate the approximate areas and sizes as follows:

FLOOR | SUITE NET INTERNAL AREA (SQM) NET INTERNAL AREA (SQFT)

Ground Floor | Suite 1 136.88 1,473

Ground Floor | Suite 2 143.22 1,542

First Floor | Suite 3 148.33 1,597

First floor | Suite 4 168.18 1,810

Ground Floor | Suite 5 85.1 916

Ground Floor | Suite 5a 31.02 334

Lower Ground Floor | Suite 6 84.57 910

Lower Ground Floor | Suite 6a 29.59 318

Lower Ground Floor | Suite 7 141.01 1,518

TOTAL 967.9 10,418

The building sits on a site extending to approximately 0.16 acres.

FLOOR PLANS


ACCOMMODATION


05

TENUREThe subject property is held on heritable title (Scottish equivalent to English freehold).

PROPOSALWe are instructed to seek offers in excess of £1,000,000 (ONE MILLION POUNDS STERLING) exclusive of VAT.

A purchase at this level would reflect an attractive Net Initial Yield of 7.64% and a capital rate of £96/sqft, assuming standard purchaser’s costs of 5.65%, to include LBTT.

VATOur 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 COSTSEach party will be responsible for their own legal costs incurred in connection with the transaction.

TENANT D&B CREDIT RATING SUITE AREA (SQ FT) REPAIR PASSING RENT

P.A RENT PER SQ FT LEASE START LEASE EXPIRY EPC COMMENTS

Randolph Hill Nursing Homes Group Limited

4A1 1,2,7 4,533 FRI £43,562 £9.61 11/03/2015 31/05/2020 D

Randolph Hill occupy the 7

space garage as per the terms of

their lease.

BINAP Limited H3 5 & 5A 1,250 FRI £10,625 £8.50 11/03/2015 31/05/2020 D

World Mission Agency - Winner's Chapel International, Scotland Ltd.

4A1 3,4,6,6A 4,635 FRI £26,496 £5.72 12/09/2016 11/09/2021 D

TOTAL 10,418 £80,683 £7.74

There is a nominal service charge budget for the building that equates to £0.61/sqft. Further details are available on request.


TENANCY


06

RODNEY STREET

BEAVERBANK BUSINESS PARK CANON COURT WATER OF LEITH

WATER OF LEITH WALKWAY



07

VIEWING & FURTHER INFORMATIONPlease contact the sole selling agent:

Sheridan Property Consultants 37 One 37 George Street Edinburgh EH2 2HN

Tel 0131 300 0296

Stewart Sheridan/Cathal Keane/Graeme Millar

Stewart Sheridan 07740 940898 Cathal Keane 07808 627224Graeme Millar 07523 512804

Email: [email protected] Email: [email protected] Email: [email protected]

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 have 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. JULY 2019

Sheridan Property Consultants

Documents

BROUGHTON HOUSE · for sale multi-let office investment with excellent development potential offers in excess of £1,000,000 (7.64% niy & £96/sqft capital rate) broughton house 31