REDUCED PRICE - £649,500
A former manufacturing facility sub-divided into a variety of industrial and office units. Excellent parking provision and yard space with some surplus yard area’s used for container storage. Large are of undeveloped land. There are a variety of different user types on the estate - gym, auction house, textile manufacturing, engineering etc. Some users have been there for many years - see tenancy schedule for more detail.
The property would benefit from fresh investment and management which would allow rents to be pushed on. The rents have not been pushed and are very low.
Location
Woodend Business Centre is located approximately 1 mile to the South West of Cowdenbeath Town centre on the B981. Access to the A92 Dual Carriageway one mile in either direction from the site. The A92 is the main route through Fife and provides quick journey times North and South and links onto the M90 2 miles to the South West.
Edinburgh is approximately 21 miles to the South and Dunfemline approximately 6 miles to the South with the Forth Road Bridge circa 9 miles.
Accommodation
Unit 1 - 6,800 sq ft
Unit 1A - 4,400 sq ft
Unit 2 - 5,000 sq ft
Unit 2A/2B - 480 sq ft
Unit 3 - 3,500 sq ft
Unit 3A - 1,500 sq ft
Unit 4 - 7,850 sq ft
1st Floor Corridor 1
Office 6 - 240 sq ft
Office 7 - 240 sq ft
Office 8 - 240 sq ft
Office 9 - 240 sq ft
Office 10 - 240 sq ft
Office 11 - 240 sq ft
Office 12 - 240 sq ft
Office 13 - 240 sq ft
Office 14 - 240 sq ft
Unit 5 Corridor 2
Office 1 - 307 sq ft
Office 2 - 131 sq ft
Office 3 - 135 sq ft
Office 4 - 208 sq ft
Office 5 - 132 sq ft
Office 6 - 64 sq ft
Office 7 - 150 sq ft
TOTAL - 32,817 sq ft
Outside Yard - 0.3 acres
Terms
Proposal - We are seeking offers over £649,500, exclusive of VAT. This reflects a net initial yield of 12%, after purchasers costs.
Tenancy Schedule - See attached brochure for information
Gross and Net Income Profile - We understand the current gross income is £83,874. Our clients recover service charge, insurance, water and electricity costs for leased units and we have been advised the total shortfall at the current time is £2,011, giving a net income of £81,863. Note, we have netted off these costs for Unit 1A where the tenant pays an all inclusive rent of £10,000 pa. This is a historic arrangement based on the tenant company being related to the owner company. We expect the purchaser would want to regularise this arrangement or relet based on commercial terms.
Lease Structures - Most leases are on a rolling year to year arrangement where either party can terminate on 1 months notice with one or two requiring 3 months notice. Diamac are on a 5 year lease with the landlord having an option to terminate on 1 years notice in the event of redevelopment. Leases are effectively IRI with the landlord taking responsibility for common and external repairs / maintenance and recovering through the service charge.
Tenure - Heritable interest (Scottish Equivalent of English Freehold).
Service Charge and Utility Costs - The service charge for the estate is circa £0.78 psf. The landlords pay electricity and water costs for most units and recharge to the tenants. Details can be provided to interested parties.
VAT - The property is elected for VAT which will therefor be payable on the purchase price. However, it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC)
EPC - EPC Rating of A and Section 63 Report can be provided.
Data/Further Information - Can be provided to seriously interested parties.
Specification
- Multi let former manufacturing facility of circa 33,000 sqft
- Includes large yard area and undeveloped ground
- Additional development site of circa 4 Acres available by seperate agreement
- Approx 1 mile from A92
Investment Summary
- Reduced price of £649,500 shows NIY of 12 % after deduction of non-recoverable costs
- Circa 33,000 sq ft multi let business centre
- Sits on a 4 acre site with large yard and undeveloped ground – additional 4 acre site also available
- Current rent roll of £83,874
- Low capital cost under £20psf and low site coverage
- Very low passing rents with considerable scope to increase
- Fixed increase on Unit 1 will increase rent by £7k and take running yield to over 13%
- Redevelopment / refurbishment angles and considerable active management potential
- Adjacent 4 acre site can be added subject to separate agreement on price
Asset Management Opportunities
- Re-gear leases to market rates. Most units are significantly under rented and can be renegotiated within the next 12 months. Several tenants want to commit for longer.
- Consider refurbishment and redevelopment of business centre and associated yard and land.
- Rebranding and opening up to other user types, particularly relating to the office space.
- Sort out management and run on a more commercial basis.
- Aquire the additional development land of 4 Acres to create a larger development opportunity.