broughton house · for sale multi-let office investment with excellent development potential offers...
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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
BROUGHTON HOUSE | EDINBURGH
LOCATION
31 DUNEDIN STREET EDINBURGH EH7 4JG
02
evue
B901 B901 B901
EYR
E P
LACE
B900
BROUGHTON R O AD
B90 0
B
RO
UGH
TON
RO
AD
MCD
ONALD
ROAD
WA
RR
ISTO
N C
RE
SC
EN
T
WA
RR
ISTO
N R
OA
D
LOG
IE G
RE
EN
RO
AD
BE
AV
ER
BA
NK
PLA
CE
BE
AV
ER
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
E R
OA
D
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
BROUGHTON HOUSE | EDINBURGH
SITUATION
31 DUNEDIN STREET EDINBURGH EH7 4JG
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.
BROUGHTON HOUSE | EDINBURGH
DESCRIPTION
31 DUNEDIN STREET EDINBURGH EH7 4JG
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
BROUGHTON HOUSE | EDINBURGH
ACCOMMODATION
31 DUNEDIN STREET EDINBURGH EH7 4JG
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.
BROUGHTON HOUSE | EDINBURGH
TENANCY
31 DUNEDIN STREET EDINBURGH EH7 4JG
06
RODNEY STREET
BEAVERBANK BUSINESS PARK CANON COURT WATER OF LEITH
WATER OF LEITH WALKWAY
BROUGHTON HOUSE | EDINBURGH
31 DUNEDIN STREET EDINBURGH EH7 4JG
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