1/5 RUTLAND COURT FOR SALE PRIME EDINBURGH CITY CENTRE OFFICE INVESTMENT EDINBURGH EH3 8EY 02 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 03 04 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 05 INVESTMENT SUMMARY Prime city centre office investment. High profile location within The Exchange District, Edinburgh’s Central Business District. The property provides flexible open plan office accommodation extending to 3,596.44 sqm (38,712 sqft) and benefits from 18 car spaces. The property is let in its entirety and wholly occupied as its headquarters by Anderson Strathern, a well established firm of Edinburgh solicitors. FRI lease expiring 16 December 2023. The tenant has rights to extend beyond this date. The current rent passing under the lease is £1,046,512 per annum. Outright ownership/Heritable interest (Scottish equivalent of English freehold). Offers are sought in excess of £15.2M (Fifteen Million Two Hundred Thousand Pounds). An attractive net initial yield of 6.5% after allowing for purchaser’s costs at 5.8%. 06 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 07 By business sector, Edinburgh is » A capital city and thus a centre of administration and government; the Scottish Parliament, Scottish Executive EDINBURGH IS SCOTLAND’S CAPITAL CITY. and judiciary are major institutions and employers; » The UK’s second largest fi nancial centre. IT IS RECOGNISED AS THE ADMINISTRATIVE, The Global Financial Centres Index places Edinburgh (62nd) above Moscow, Budapest and Lisbon; JUDICIAL AND FINANCIAL CENTRE OF THE COUNTRY » Home to 3 universities with more than 60,000 students and 26,000 employees; the University of Edinburgh is one of AND IS HOME TO THE SCOTTISH PARLIAMENT. the UK’s top 5 research universities and is ranked 17th in the world (QS World Universities Ranking 2013/2014); » The second most visited tourist location in the UK (with 3.7million staying visitors to the city in 2011), and a gateway to Scotland via a growing international airport, mainline rail and motorway access; tourism is based around the historic capital city and a range of international festivals, events EDINBURGH and attractions. » Further sectoral strengths of Edinburgh Edinburgh is Scotland’s capital city. Edinburgh’s population is include research and development, It is recognised as the administrative, comparatively young (61.6% is bio-technology and medical sciences judicial and fi nancial centre of the aged 44 or under which compares and retail and leisure. country and is home to the Scottish to 55.2% for Scotland). By 2035 the Parliament. The city is 411 miles population of the city is projected to north of London with regular air and be 611,367, an increase of 26.6% rail connections. The average journey from the population in 2012. time by plane is in the order of 1hr Edinburgh has a working age 25mins and train journeys take about population of circa 340,000 and 4hrs 40mins. Edinburgh International benefi ts from a highly qualifi ed Airport lies approximately 8 miles workforce with 54% holding a degree west of the city centre and is one of or degree equivalent level qualifi cation. the UK’s fastest growing airports. 35.2% of workers in Edinburgh are The city benefi ts from two train managers or professionals which stations – Waverley and Haymarket. compares favourably to the UK as The city offers easy access to a whole at 28.5%. Scotland’s main motorway network Unemployment is lower and linking the country’s other principle economic activity higher than the cities, namely, Glasgow (45 miles respective national averages. In west); Dundee (61 miles north-east); surveys Edinburgh regularly ranks Stirling (36 miles north-east); Perth as one of the UK’s top locations for (43 miles north-east); Aberdeen 126 quality of life. miles north-east) and Inverness (156 miles north-west). The 2012 population for the city of Edinburgh (according to National Records of Scotland) is estimated at 482,640, an increase of 1% from 477,940 in 2011. The population of the city of Edinburgh accounts for 9.1% of the total population of Scotland. 808 FORFOR SALESALE PRIMEPRIME CITYCITY CENTRECENTRE OFFICEOFFICE INVESTMENTINVESTMENT 1/51/5 RUTLANDRUTLAND COURTCOURT 09 9 09 08 14 01 10 13 02 04 05 03 06 07 12 16 11 15 01 Saltire Court 02 Clydesdale Bank Plaza 04 Capital House 11 Exchange Tower 15 Edinburgh Quay 1/2 SURROUNDING KPMG Burness Paull LLP Bank of New York Mellon HBJ Gateley Wareing Saffery Champness Dundas & Wilson Clydesdale Bank Royal Bank of Canada Barclays 05 Franklin Templeton Martin Currie Investment Cairn Energy Tods Murray OFFICE OCCUPIERS 12 Blackrock Management 06 SWIP Baker Tilly 03 Exchange Crescent Deloitte 13 Lloyds Banking Group Shepherd & Wedderburn 07 Scottish Widows HQ 16 ATRIA Some of Edinburgh’s most established Quilter Standard Life 14 7 Castle Street Brewin Dolphin occupiers are located in the immediate Dunedin Capital 08 Maclay Murray & Spens Faculty of Actuaries MBM Commercial Green Investment Bank vicinity of 1/5 Rutland Court. ACH Shoosmiths Barrie & Hibbert 09 Morton Fraser SVM PricewaterhouseCoopers Close Brothers Grant Thornton 10 Standard Life HQ 10 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 11 EXCHANGE DISTRICT SITUATION THE SURROUNDING The Exchange Financial District was conceived 1/5 Rutland Court is situated at the heart and planned in excess of 20 years ago as a new of The Exchange. The property occupies AREA HAS A VARIETY focal point for the Capital’s well established a prominent position on the corner of the and important fi nancial sector. Public Western Approach Road and Canning Street. investment in site infrastructure and the iconic Directly opposite the property is Clydesdale Edinburgh International Conference Centre OF AMENITIES Bank Plaza and Exchange Crescent. The head (EICC) has taken place alongside private offi ce of Standard Life plc is situated adjacent development of new fl agship headquarters to the property. buildings, as well as speculative offi ce space. CATERING FOR THE The initiative has been enormously successful The property benefi ts from excellent with 30 major business institutions locating in communication links; the recently refurbished the District and approximately 9,300 workers Haymarket Railway Station is within easy NEEDS OF A MODERN employed in fi nancial services in the area. walking distance and the adjacent Western Approach Road offers rapid access to West The EICC has contributed £333 million Edinburgh, Edinburgh Airport and the central to Edinburgh’s economy since opening Scotland motorway network. BUSINESS in 1995. In conjunction with the EICC and Scottish Enterprise, Edinburgh City Council is capitalising upon the Centre’s success by further expanding it, with an £80 million extension, providing 2,000 sqm (21,500 sqft) of additional subterranean function space. In conjunction with the expansion of the EICC, the adjoining Atria speculative offi ce development has recently completed and comprises 17,500 sqm (190,000 sqft) of offi ce accommodation, let in part to Brewin Dolphin, the Green Investment Bank and PWC. The surrounding area has a variety of amenities catering for the needs of a modern business. The nearby West End and Clydesdale Bank Plaza offer restaurants, bars and cafes in attractive settings. Lothian Road is home to a number of Edinburgh’s top theatres including The Traverse Theatre, The Royal Lyceum and Usher Hall. In addition, Princes Street and George Street, Edinburgh’s prime retail streets, are a short walk away. 12 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 13 DESCRIPTION AND SPECIFICATION The property was built for owner The property was developed to a occupation in 1991 and comprises high specifi cation and incorporates an 8 storey offi ce building (1 Rutland the following: Court) with separate vaulted garage » Prestigious reception with (5 Rutland Court) situated immediately high quality fi nishes north of the property. » 2 x 10 person passenger lifts The building is of steel frame serving all fl oors construction with concrete fl oors, supported by a combination of piled » Full raised access fl oors and concrete pad foundations and incorporating fl oor boxes externally clad with glazed curtain » Suspended ceilings incorporating walling and dressed sandstone. The recessed lighting main pedestrian access to the building is at Level 2 off the walkway which » Four pipe fan-coil air-conditioning connects the nearby Rutland Square and heating system with The Exchange District. » High quality ladies and The offi ce accommodation has been gents toilets together with designed to provide fl exible open plan shower facilities space extending to a net internal area » Building management system of 38,712 sqft and is arranged over 7 levels. There is parking for 12 cars at » Floor loading capacity of basement level and a further 6 spaces 5+1 kN per sqm are situated within the separate coach house/garage at 5 Rutland Court. 14 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 15 ACCOMMODATION The building is arranged as set out below with the following approximate net internal fl oor areas. This is consistent with the lease and for the purposes of rent review the lease states that the net internal area available for offi ce use in the property is 38,712 sqft. LEVEL SPACE SQM SQFT Lower Ground Storage & Car Parking LOWER GROUND LEVEL 2 Level 1 Offi ces 545.34 5,870 Level 2 Offi ces 520.53 5,603 Level 3 Offi ces 558.25 6,009 Level 4 Offi ces 552.12 5,943 Level 5 Offi ces 480.77 5,175 Level 6 Offi ces 532.89 5,736 Level 7 Offi ces 406.54 4,376 Total 3,596.44 38,712 LEVELS 3 - 6 LEVEL 7 LEVEL 7 406.54 SQM (4,376 SQFT) LEVEL6 532.89 SQM (5,736 SQFT) LEVEL 5 480.77 SQM (5,175 SQFT) LEVEL 4 552.12 SQM (5,943 SQFT) LEVEL 3 558.25 SQM (6,009 SQFT) LEVEL 2 520.53 SQM (5,603 SQFT) LEVEL 1 545.34 SQM (5,870 SQFT) LOWER GROUND STORAGE & CAR PARKING 16 FOR SALE PRIME CITY CENTRE OFFICE INVESTMENT 1/5 RUTLAND COURT 17 THE EDINBURGH OFFICE THE EDINBURGH OFFICE MARKET EDINBURGH OFFICE SUPPLY AND TAKE UP INVESTMENT MARKET The Edinburgh CBD market has an estimated Edinburgh offi ce take-up in the year to The Edinburgh offi ce market is fi rmly on offi ce stock of 11 million sqft.