BROUGHTON HOUSE 31 DUNEDIN STREET EDINBURGH EH7 4JG
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 | EDINBURGH BROUGHTON HOUSE 01
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;
L O GLogie Mill IE ET RE M ST • POTENTIAL FOR REDEVELOPMENT OF THE IL DIN L NE ENTIRE SITE FOR ALTERNATIVE/RESIDENTIAL USE DU (SUBJECT TO PLANNING);
D U • WE ARE INSTRUCTED TO SEEK OFFERS IN N E D IN EXCESS OF £1,000,000 (ONE MILLION POUNDS S T R EE STERLING) EXCLUSIVE OF VAT. T
• A PURCHASE AT THIS LEVEL WOULD REFLECT 00 Dunedin Str B9 AN ATTRACTIVE NET INITIAL YIELD OF 7.64%
eet D BroughtonA Road AND A CAPITAL RATE OF £96/SQFT, ASSUMING RO ON B900HT STANDARD PURCHASER’S COSTS OF 5.65%, OUG BR Broughton Road Park ghton Road ou TO INCLUDE LAND & BUILDINGS TRANSACTION Br
TAX (LBTT). 00 B9
Road
31 DUNEDIN STREET EDINBURGH EH7 4JG BROUGHTON HOUSE | EDINBURGH LOCATION 02
EDINBURGH HAS A POPULATION OF 495,000 WITHIN THE CITY, INCREASING TO 1.6 MILLION WITHIN THE LOTHIAN
INVERLEITH ROW CATCHMENT AREA. IT IS THE MOST PROSPEROUS REGIONAL AD RO N ROYAL BOTANIC TO CITY IN THE UK AND ITS WORKFORCE IS ONE OF THE MOST IS BROUGHTON HOUSE R R GARDENS A PILRIG STREET W HIGHLY EDUCATED IN THE UK WITH 45.3% HOLDING A DEGREE 5 MCDONALD ROAD OR PROFESSIONAL QUALIFICATION. Water of Leith BROUGHTON ROAD
BRANDON ST RODNEY STREET
LEITH WALK
GLENOGLE ROAD EYRE PLACE GRANGE The city’s financial and business centre is extremely diverse and the city is home to EAST CLAREMONT STREET CRICKET 4 CLUB HENDERSON ROW more FTSE 100 companies than any other city in the UK outside London. The city C OMELY BANK COMELY BANK AVE weathered the financial uncertainties of recent years well, with a number of new R EAST LONDON STREET AEBU LEARMONTH GROVE FETTES ROW RN ELM ROW P U LA NION STREET entrants gaining significant representation as well as existing companies expanding. LEARMONTH AVE C BROUGHTON ST E
New entrants include Virgin Money, Tesco Bank, Amazon, Avaloq and the Green LANE CUMBERLAND STREET US ST VINCENT ST HOWE ST C IR DUNDAS STREET CRAIGLEITH PARK ST STEPHENC ST Investment Bank. LONDON ROAD ORCHARD BRAE GREAT KING ST 3 EASTER ROAD LEARMONTH GDNS 1 Financial services continue to be a major facet of the Scottish economy and account GLOUCESTER LANE S LEARMONTH GDNS NORTHUMBERLAND STREET for up to one in ten Scottish jobs. Edinburgh also has a world class reputation for Q YORK PLACE UE DEAN PARK CRESCENT EN enterprise in areas such as information technologySF and software development, ST JAMES E Y PL A C RR A E Y R CENTRE ROA O biotechnology and life sciences. D QUEENSFERRY ROAD M HERIOT ROW EW Bus THISTLE ST ST ANDR Station QUEEN STREET HANOVER ST The city has a strong educational heritage, boasting four universities, providing THISTLE ST GEORGE ST an educational hub for over 1,000,000 students, including more than 156,000 ALBYN PLACE HILL ST SQUARE C GEORGE ST REGENT ROAD AS ROSE ST HOLYROOD international students, making it the most popular destination for overseas students NORTH BRIDGE T GEORGE ST PALACE L TE E RAVELSTON TERRACE LOT ROSE ST CALTON RD wishing to study at universities in the UK outside London. CHAR S PRINCES STREET T QUEENSFERRY ST T OSE ST 2 H R P E SC AR THE MOUND ley er L O E IAME AR Wav T SQU T The city benefits from excellent communication links; Edinburgh Airport is the fifth TE ISH Station NT CANONGA largest international airport in the UK and is located 8 miles west of the city centre. PRINCES STREET ET E AD TR O Over 50 airlines operate from Edinburgh Airport which fly to 120 destinations across S MELVILLE ST R OD R TE O ES YR 29 countries. H LOTHIAN ROAD C HIGH STREET HOL G E O SHANDWICK PLACE R Furthermore, the city boasts 2 iconic train stations, Waverley and Haymarket, both Edinburgh Castle G C E A I S V T of which are a short walking distance from Princes Street. Both Stations provide L B E R
T I D E R AR P R SSM KET G L A E direct services to and from London and are easily reached from other main English R E G A
TORPHICAN ST CHAMBERS STREET S A
MAITLAND ST N towns and cities as well as providing services to all major Scottish centres. The new NICOLSON STREET C
E L RT AD EST PO tram system commenced operations in May 2014 and connectsRO the Airport andW the MORRISON ST Y W SEB EST COATES HAYMARKET TERRACE LA URN W TERRACE ST LEONARDS BREAD ST SO west of Edinburgh to the city centre. N SEMPLE ST ST Haymarket Station O N P L A C E R I ST GROVE ST L A U POINT OF INTEREST DISTANCE TRAVEL TIME (WALKING)
LRY ROAD A WEST APPROACH ROAD 1 Tram Stop (York Place) 0.8 miles 18 mins D MEADOWS 2 Waverley Station 1.1 miles 22 mins FOUNTAINBRIDGE WEST APPROACH ROAD BRUNTSFIELD MELVILLE DRIVE 3 Broughton Street 0.6 miles 13 mins LINKS DUNDEE STREET 4 Leith Walk 0.9 miles 12 mins
V I EWFORTH E C 5 Canonmills 0.2 miles 3 miles A L P D EL IE ROAD ANGLE PARK TERRACE FI G TS N GOR U BR MERCHISTON AVENUE
POLWORTH GARDENS 31 DUNEDIN STREET EDINBURGH EH7 4JG BROUGHTON HOUSE | EDINBURGH SITUATION 03
BROUGHTON HOUSE IS SITUATED ON D A THE SOUTH-WEST SIDE OF DUNEDIN O R STREET WITHIN THE POWDERHALL AREA N O T OF EDINBURGH LOCATED 0.8 MILES TO H D A G O HALL U THE NORTH-EAST OF THE CITY CENTRE. R DER ROAD N W O O PO ST 180 NEW HOMES UNDER R DUNEDIN STREET CAN BE ACCESSED VIA I CONSTRUCTION B R R A
LOGIE GREEN ROAD / POWDERHALL ROAD W
TO THE NORTH OR BROUGHTON ROAD
TO THE SOUTH, BOTH OF WHICH ALLOW B
BEAVERBANK BUSINESS E T PARK A E V EASY ACCESS TO THE CITY CENTRE AND E E R M T R S C EDINBURGH’S WIDER REGION. H IN 0 D A D 0 L L E 9 O O L N B N U 6 POPPY SCOTLAND G R D KINGSFORD RESIDENCIES A I O E L A D G T Transport links to Broughton House are excellent with north D R R N B to west and north to south bus stops along Broughton E BROUGHTON HOUSE O E E E A C A N Road servicing the north to west and north to south V S 1 D D E E R commute through the City with the No. 8,23,27 & 36 A O R R O B A running frequent daily services and within walking distance C R D A D N N A
of Broughton House. N K O O
O R T P M
T N S O C I L In addition to the residential occupiers surrounding S T
I A H D R G O Broughton House, the area is also home to a number of R C T R U E N R 4 E A O A commercial occupiers to include James.F.Kidd, Sixt UK, E A R L W B R D W Continental Wine, Dunedin Builders Merchants, Tesco, Lidl T S P L and Costa Coffee. A T B C N E 9 U 0 O 1 D M 3 A E O TRAVEL TIME R POINT OF INTEREST DISTANCE R (WALKING) A 0 L E C U 0 1 36 Bus Stop (Gyle) 0.2 miles 4 mins 9 T V
K B S E L N A T L 2 Canonmills 0.4 miles 6 mins E A E E 2 B R A B N 3 Tesco & Costa 0.3 miles 5 mins R B901 T N T A N S
4 Lidl 0.2 miles 4 mins O N L D M L E A 8 Bus Stop (Edinburgh E vue L R E 5 0.3 miles 5 mins A Be Royal Infirmary) E L S C C T A Water of Leith Walkway L B 5 P 9 0 6 to North and North-West 0.5 miles 8 mins E 1 Edinburgh R Y E
31 DUNEDIN STREET EDINBURGH EH7 4JG BROUGHTON HOUSE | EDINBURGH DESCRIPTION 04 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 The site offers a fantastic natural daylight together with fire and intruder alarm systems. opportunity for any purchaser 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, to redevelop the site or buildings 2 blocked) with the remaining 6 spaces located at the front of Broughton House. for alternative uses at a later date, subject to planning
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 There are a total of 13 car for any purchaser to redevelop the site or buildings for alternative uses at a later parking spaces available date, subject to planning.
31 DUNEDIN STREET EDINBURGH EH7 4JG SUITE 6
SUITE 6A
FEMALE WC
SUITE 7 MALE WC GARAGE
DISABLED WC
ST
LOWER GROUND FLOOR
SUITE 5 SUITE 5A
MALE WC
STAFF FEMALE KITCHEN WC
SUITE 1
ST
SUITE 2 ST OFFICE
GROUND FLOOR
BROUGHTON HOUSE | EDINBURGH
SUITE 6 SUITE 6 SUITE 6A ACCOMMODATION SUITE 6A 05
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
FEMALE Ground Floor | Suite 2 143.22 1,542 WC
FEMALE First Floor | Suite 3 148.33 1,597 SUITE 7 WC MALE WC GARAGE MALE First floor | Suite 4 168.18 1,810 WC Ground Floor | Suite 5 85.1 916 SUITE 4 SUITE 3
DISABLED Ground Floor | Suite 5a 31.02 334 WC Lower Ground Floor | Suite 6 84.57 910 Lower Ground Floor | Suite 6a 29.59 318 ST Lower Ground Floor | Suite 7 141.01 1,518
TOTAL 967.9 10,418 FIRST FLOOR
The building sits on a site extending to approximately 0.16 acres. LOWER GROUND FLOOR
FLOOR PLANS
SUITE 6 SUITE 5 SUITE 5A SUITE 6A
MALE WC
STAFF FEMALE KITCHEN FEMALE WC WC
SUITE 7 SUITE 1 MALE WC GARAGE
ST
SUITE 2 DISABLED ST OFFICE WC
ST
LOWER GROUND FLOOR GROUND FLOOR
31 DUNEDIN STREET EDINBURGH EH7 4JG
SUITE 6 SUITE 6A SUITE 5 SUITE 5A
MALE WC FEMALE STAFF WC FEMALE KITCHEN WC MALE WC
SUITE 1 SUITE 4 SUITE 3
ST
SUITE 2 ST OFFICE
FIRST FLOOR
GROUND FLOOR
SUITE 6 SUITE 6A
FEMALE WC
MALE WC
SUITE 4 SUITE 3
FIRST FLOOR BROUGHTON HOUSE | EDINBURGH TENANCY 06
D&B CREDIT PASSING RENT TENANT SUITE AREA (SQ FT) REPAIR RENT PER SQ FT LEASE START LEASE EXPIRY EPC COMMENTS RATING P.A
Randolph Hill Randolph Hill occupy the 7 Nursing Homes 4A1 1,2,7 4,533 FRI £43,562 £9.61 11/03/2015 31/05/2020 D space garage as Group Limited 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 4A1 3,4,6,6A 4,635 FRI £26,496 £5.72 12/09/2016 11/09/2021 D International, Scotland Ltd.
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.
TENURE The subject property is held on heritable title (Scottish equivalent to English freehold).
PROPOSAL 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 LBTT.
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.
31 DUNEDIN STREET EDINBURGH EH7 4JG BROUGHTON HOUSE | EDINBURGH 07
WATER OF LEITH WALKWAY
RODNEY STREET
BEAVERBANK BUSINESS PARK CANON COURT WATER OF LEITH
31 DUNEDIN STREET EDINBURGH EH7 4JG VIEWING & FURTHER INFORMATION
Please contact the sole selling agent: Sheridan Property Consultants
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 627224 Graeme 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