Newton Terrace
6/7 Newton Terrace, Glasgow
Single-let traditional office investment
Investment Summary
•
Single let traditional ‘B’ listed office investment.
•
Well located to the west of Glasgow city centre.
•
Let to Entec UK Limited (4A1).
•
Current income of £85,500 per annum.
•
Offers over £800,000, reflecting an initial yield of 10.10%, assuming purchasers’ costs of 5.8%.
6 / 7 Newton Terrace, Glasgow
Location
The property is situated in Glasgow, Scotland’s largest city, with a population of almost 582,000 within its
urban area and a primary catchment of 1,160,000. Located in west central Scotland, the city has the largest
office centre in the UK outside of London.
Glasgow benefits from an excellent communications system with the M8 running through the city and
providing a direct route to Edinburgh and to the M74, which is the main arterial route to the south.
The city is served by two railway stations which provide local services and regular inter-city services to
other main urban centres throughout the UK. Air services are provided by Glasgow International Airport,
situated 7 miles to the west of the city centre and Prestwick International Airport, some 40 miles drive to
the south west of the city.
Situation
The subjects are contained within the established Park area of Glasgow on the west side of the city.
The location is dedicated mainly to office/quality residential use and boasts some of the most stunning
traditional architecture within the city. Sauchiehall Street is located within easy walking distance and
Glasgow Airport is situated with a fifteen minute drive.
The property is situated on the south side of Newton Terrace close to its junction with Granville Street.
6 / 7 Newton Terrace, Glasgow
Description
The subjects comprise a category ‘B’ listed mid terraced, four storey office building of traditional
sandstone construction finished with a pitched and slated roof. The building has been extended at the
rear with the annexe being of brickwork construction finished with a flat felt roof.
The accommodation is arranged over basement, ground, first and second floors. Traditional cellular
space is featured throughout with the exception of the ground floor which is mainly open plan.
Artificial lighting is mostly provided by fluorescent fitments and heating provided by gas fired
radiators. The tenant has recently upgraded the reception area, toilets and kitchen facilities.
The rear basement provides car parking for 8 vehicles (1:84.9 m² / 1:914 ft²) and is accessed via
Newton Terrace Lane.
Tenure
Heritable (freehold).
Accommodation and Tenancies
The subjects have been measured in accordance with the Code of Measuring Practice (6th Edition).
The net internal floor area is shown below:
Tenant
Floor Areas (ft²)
Entec UK
Ltd.
Basement
Ground
First
Second
Totals
7,311
Rent
£pa (ft²)
MRV
Lease Details Comments
£pa (ft²)
1,320 85,500
3,156 (11.69)
1,374
1,461
91,387
(12.50)
85,500
91,387
07/09/2007 06/09/2017
FRI lease.
Tenant break option as at 07/09/2012
subject to 6 month rental penalty.
Rent review as at the same date.
Covenant
Entec UK Ltd.
Financial Period (YE)
31/12/2009
31/12/2008
31/12/2007
Turnover (£000’s)
55,688
63,599
61,190
Pre-tax Profit (£000’s)
6,618
9,127
8,600
Shareholder’s Funds (£000’s)
29,141
23,150
30,527
6 / 7 Newton Terrace, Glasgow
Investment Considerations and Asset Management Opportunities
• Well established area.
• Tenant has recently refurbished parts of the building.
• Good mix of open plan and traditional cellular space.
• Low passing rent.
• Possible alternative uses subject to planning.
Proposal
We have been instructed to seek offers over £800,000 exclusive of VAT for our clients interest. A purchase at this level reflects a net initial yield of 10.10%, assuming purchaser’s cost at
5.8%.
Further Information
For further information, please contact:
Oliver Abram
T. +44 (0)131 243 2233
E. oliver.abram@kingsturge.com
Simon Cusiter
T. +44 (0)131 243 2203
E. simon.cusiter@kingsturge.com
© Crown Copyright 2011. All rights reserved. Promap licence number 100020449. King Sturge licence number 100017659.
This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.
Misrepresentations Act 1967 & Declaration
Jones Lang LaSalle for themselves and for the vendors of this property whose agents they are give notice that: a) the particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an offer or contract; b) all
descriptions, dimensions, references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchaser should not rely on them as statements or representations of fact but should
satisfy themselves by inspection or otherwise as to the correctness of each of them; c) no person in the employment of Jones Lang LaSalle has any authority to make or give any representation or warranty whatever in relation to this property. June 2011.