High Yielding, Prime, Office/Industrial Investment Opportunity
Investment Summary• Opportunity to purchase a long let business space investment situated in the prime commercial location of Bridge of Don, Aberdeen;
• The property comprises a modern hybrid industrial/office facility extending to 3,306.00 sq m (35,588 sq ft) together with 53 car spaces;
• Let to Sparrows Offshore Services Limited (D&B 4A2) on FRI terms until 11th August 2029;
• The property is held on a long ground lease, expiring 26th March 2134, at a current rent of £39,750 per annum;
• Current gross rent of £543,899 per annum producing a net rent of £504,149 per annum, following deduction of the ground rent;
• The lease incorporates provision of annual fixed increases of 3.00% per annum until 12th August 2024. There is also provision of 5 yearly rent reviews to the higher of open market rent or rent passing. The next market rent review is due as at 28th August 2019;
• The ground rent is reviewed 5 yearly with the next review 27th March 2019.
Offers in excess of £5,940,000 (Five Million Nine Hundred and Forty Thousand Pounds Sterling) are sought for our client’s leasehold interest, subject to contract and exclusive of VAT.
A purchase at this level would provide a net initial yield of 8.00% rising to 8.26% as at 28th August 2017, after purchaser’s costs at 6.14%. Thereafter the following running yield profile is achieved assuming that a) there is nil uplift in the ground lease rent review and b) there is nil increase in the occupational lease open market rent review.
DATE
GROSS RENT
NET RENT
RUNNING YIELD
28/08/2018
£577,022
£537,273
8.53%
28/08/2019
£594,333
£554,584
8.80%
28/08/2020
£612,163
£572,414
9.08%
28/08/2021
£630,528
£590,778
9.37%
28/08/2022
£649,444
£609,694
9.67%
28/08/2023
£668,927
£629,178
9.98%
28/08/2024
£688,995
£649,245
10.30%
Location
Denmore Road, Bridge of Don, Aberdeen, AB23 8JW, Aberdeenshire, , Scotland