The investment comprises a courtyard development of 4 buildings with a central car park offering 25 dedicated spaces. There is an additional area to the east of the main car park which is a dedicated drop off and turning area. This is occasionally used as overflow parking.
Building 1 comprises a refurbished 2 storey building fully occupied and fitted out as a medical centre. Building 2A/B is a single storey building currently operating as a children’s nursery with outdoor play area. Building 3 is another refurbished 2 storey building fitted out as offices and Building 4 is single storey building which also operates as a nursery. Click on video link below to view the property.
Location
City Overview
This investment opportunity is located in the city of Glasgow, the economic hub of Scotland with a population of 600,000 and in excess of 1.675 million within the wider metro area. Scotland’s capital city, Edinburgh, lies 40 miles to the east, the two cities connected by enviable road, rail and bus links.
The M8 motorway, which travels through the city, provides access to Edinburgh and the north with the M74, which flanks the southeast of the city centre, providing links to the south. The city has excellent local and national rail/bus links with Glasgow International Airport only 8 miles to the west of the city centre providing connections to destinations throughout Europe and the rest of the world.
The city is the principal economic centre of the Scottish economy. It has for many years delivered a strong track record in attracting inward investment providing an enviable mix of business, productivity, innovation and investment establishing one of the most diverse and forward thinking cities in Europe. The city is proud to have been awarded the best Convention Bureau in the UK, is one of the world’s top Ultimate Sporting Cities and is one of the UK’s largest and most successful shopping locations outside London.
Local Context
The property is located in Anniesland, an established residential suburb located 4.5 miles to the west of the city centre. The area offers a broad range of housing types, a successful commercial centre and is well served by both public transport links and the road network to access the city centre and the national road network.
The property is situated in an area with mixed commercial and residential uses. Marks and Spencer, Aldi, Kwik Fit, McDonalds (Drive Thru) and a petrol filling station are located within a short distance fronting onto Great Western Road, an arterial route between the city, the west and beyond towards Loch Lomond and the Highlands.
Accommodation
Building 1 - Medical Centre (NIA) - 6,289 sq ft (584.25 sq m) - 10 dedicated parking spaces
Building 2 - Nursery (GIA) - 3,633 sq ft (337.49 sq m) - 4 dedicated parking spaces
Building 3 - Office (NIA) - 2,616 sq ft (243.01 sq m) - 6 dedicated parking spaces
Building 4 - Kindergarten (GIA) - 2,221 sq ft (206.30 sq m) - 5 dedicated parking spaces
Terms
Tenancies
The four buildings are leased by three tenants. The medical centre has been in occupation since 2003 renewing their agreement in 2015. The nursery opened in Building 2a in 1993 before expanding into Building 4 and subsequently 2b in 2009. The current term was agreed at that time. The third tenant, GAMH has been in occupation since 2020. The investment provides a WAULT to lease expiry of 12 years and to the tenant break options of 10.2 years.
To view the terms of lease, please see attached brochure.
Covenant
Anniesland Medical Centre is a long established 9 doctor medical practice which has been in occupation since 2003, relocating from Crow Road, Anniesland. The practice provides a comprehensive Primary Care Service, the rent fully funded by NHS Greater Glasgow & Clyde. The lease is held in the partners names jointly and severally.
Munro House Nursey and Kindergarten is a private nursery operated by Mackin Childcare Ltd. They also operate one in East Kilbride. Buildings 2 & 4 are leased in the personal names of Mr & Mrs Mackin. They have operated from Munro Business Centre since 1993.
Glasgow Association For Mental Health (GAMH) is a limited company by guarantee. They are one of the largest mental health charities in Scotland supported through a variety of funding channels including Scottish Government, Glasgow City Council, The National Lottery, NHS Scotland, Voluntary Action Fund and The Robertson Trust.
Service Charge
The tenants pay an annual property management and rent collection charge of 4.75% of their annual rent. The buildings are effectively self-managed with the exception of buildings insurance and common maintenance which are recharged on the following basis:
Building 1 - 44.71%
Building 2A - 13.04%
Building 2B - 7.69%
Building 3 - 21.94%
Building 4 - 12.62%
Rating
Building 1 - £57,500
Building 2 - £30,250
Building 3 - £30,500
Building 4 - £19,700
EPC Rating
Building 1 - E
Building 2 - C
Building 3 - D
Building 4 - C
Proposal
Our client is seeking offers in excess of £2,400,000. Based on the current rental income, this will produce a net initial yield of 6.74%, allowing 6.68% for purchaser costs.
Legal Pack
Access to a Data Centre will be provided on request.
VAT
VAT is applicable on the purchase price.
Offers
In the normal Scottish form addressed to this office.
Legal Costs
Each party to bear their own legal costs.
Viewings
Due to the nature of the operations on site, we are unable to conduct viewings. All offers should be based on the video footage provided. Offers will be accepted suspensive on viewing.
Date of Entry
To be mutually agreed.
Specification
- Mixed Use Investment
- Medical Centre/Nursery/ Office
- WAULT – 12 years (Expiry)
- Limited Management Required
- Future Residential Development Potential