The subjects comprise a former foundry with 3 buildings on the 0.939 hectare (2.32 acre) site.
The main unit comprises a brick built, steel portal frame manufacturing unit known as building 131. This unit is primarily used for engineering with ancillary office and staff accommodation. There are two rooms at first floor level which are used as storage. The eaves height is 10.60m in the main warehouse and 4.75m in the interconnecting warehouse.
There are overhead cranes, with a 15 tonnes safe load capacity, within the main warehouse and the facility has one of the most comprehensive motor and generator test facilities in Europe, with direct full load testing and capacity at 50 and 60Hz up to 8MW/50 MVA for generators and voltages up to 15 kW.
To the west of the main building there is a detached storage unit known as building 149. This unit is of steel portal frame construction with brick walls. To the east of the main building is a detached, single storey office building known as building 1022.
Location
The subjects form part of the larger Rosyth Royal Dockyard with the main uses being naval shipbuilding, manufacturing and freight logistics.
The subjects are located on the north side of Wood Road, one of the main roads through the Dockyard. Nearby occupiers include Babcock and Fife College.
Rosyth is approximately 24km (15 miles) northwest of Edinburgh, 6.5km (4 miles) south of Dunfermline and 1.6km (1 mile) northwest of the new Queensferry Crossing. Edinburgh International Airport and Edinburgh City Centre are 15 and 25 minutes by road respectively.
The property is situated within Rosyth Business Park on the north side of the Firth of Forth around 1.6km (1 mile) west of the M90 motorway. The M90/A90 provides access to the north including Dundee and Aberdeen and to the south via the new Queensferry Crossing to Edinburgh and the M8, the main route to Glasgow.
Inverkeithing Railway Station and Rosyth Railway Station are 5 minutes’ drive from the subjects and provide a link to Edinburgh, Glasgow, Aberdeen and Dundee via the national rail network.
The roll on/roll off ferry terminal is located at the waterfront immediately to the south. This terminal acts as a hub for European freight and provides links to Northern Europe and beyond.
Accommodation
Building 131 - Warehouse - 36,484 sq ft (3,389 sq m)
Building 149 - Storage - 3,238 sq ft (301 sq m)
Building 1022 - Offices - 3,028 sq ft (281 sq m)
Total - 42,750 sq ft (3,972 sq m)
The total site area extends to approximately 0.939 hectares (2.32 acres).
Terms
Tenancy
The property is let to Parsons Peebles Generation Ltd. A new lease was agreed from 28th July 2018 expiring on 27th July 2033 with a tenant break option on 28th July 2028.
The current passing rent is £170,000 per annum (£3.98 psf).
The rent is subject to 5 yearly open market rent reviews, the next review is 28th July 2023.
The lease is also subject to a photographic schedule of condition.
Covenant
Parsons Peebles was founded over 100 years ago and are a rapid response, full scope supplier of electromechanical products and services globally. They operate from 11 sites across the UK and utilise a global sales network with which they offer new equipment, workshop services, site services and parts for motors & generators, pumps, gearboxes, compressors and other rotating machinery.
Parsons Peebles ownership sits within Clyde Blowers Capital which is one of Scotland’s largest industrial investment managers with 8 global companies operating in the oil & gas, renewables, power, water, mining and minerals sectors.
Parsons Peebles Generation Ltd have a Dun & Bradstreet rating of 2A representing lower than average risk.
Tenure
Scottish Freehold
Proposal
Our client is seeking offers in excess of £1,400,000 (One Million Five Hundred Thousand Pounds) excluding vat.
A purchase at this level reflects an attractive net initial yield of 11.50%, assuming standard purchasers costs.
VAT
The property has been elected for VAT and, therefore, VAT will be payable in respect of the purchase price. However, we anticipate the transaction will be treated as a TOGC (Transfer of Going Concern).
EPC & Section 63
A copy of the EPC and Section 63 assessment are available on request.
Specification
INVESTMENT SUMMARY
- Established industrial location
- Strategically located adjacent to the Port of Rosyth and new Queensferry Crossing
- 3,972 sq m (42,750 sq ft) of industrial accommodation
- 0.939 hectare (2.32 acre) site
- Let to Parson Peebles Generation Ltd until July 2033 (tbo July 2028)
- Annual rent of £170,000 pa (£3.98 psf)
- Scottish Freehold
- Offers in excess of £1,400,000, excl VAT
- Attractive net initial yield of 11.50%, assuming standard purchasers costs.