25 Hamilton Road, Rutherglen, G73 3DF

MIXED COMMERCIAL INVESTMENT

·         High yielding mixed use property with current income of £22,XXXa

·         3 commercial units, 3 double lockups and 12 single lockups

·         Potential  to significantly increase rent roll and formalise lease agreements

·         Adjacent to town centre in mixed residential/commercial location

·         Significant asset management opportunities

·         Below SDLT threshold (based on asking price)

·         VAT free purchase

Offers over £140,000

Location

The subjects occupy a prominent location close to Rutherglen town centre.

Rutherglen is located within the South Lanarkshire local authority area and comprises a town having a population of around 25,000 persons.  It is centred around Main Street which comprises the main retail thoroughfare and which also contains the town’s main civic building, the town hall.  Rutherglen has excellent road and public transport connections, particularly since the completion of the M74 motorway extension, which provides direct access to Glasgow City Centre as well as to the South.  There are good bus and rail connections from Rutherglen to Glasgow and the wider conurbation.

The property itself is located to the north of Hamilton Road, a short distance from the main commercial centre, and close to it’s junction with Stonelaw Road (A749), which is accessed directly from Main Street.

The surrounding properties generally comprise traditional residential tenemental buildings to the south of the street, whilst to the north of the street, properties are generally commercial in nature.  Adjacent occupiers include a restaurant, car body shop, children’s nursery and two churches.

Accommodation

The subject property comprises a site upon which a main building plus a number of lockups have been erected.  The three distinct parts of the property are summarised below:

1.            Main Building fronting Hamilton Road

This comprises an attached building, formed over a split level and being constructed of traditional brickwork, finished in render and painted externally.  The roof is mono-pitched finished in corrugated cement sheeted panels supported by a steel truss roof.  The building has been subdivided into three distinct parts as follows:

                a)            Furniture showroom and workshop (Units A & B)

This occupies the entire upper ground floor of the building with the entrance accessed directly from Hamilton Road.  The space has been subdivided to provide main showroom, workshop, staff office and toilet accommodation.

b)            MOT station/car repair workshop (Unit C)

This is accessed to the rear at lower ground floor level, being formed over a double height and accessed via two manually operated roller shutter doors, to the north elevation and east gable wall.  The accommodation is subdivided to comprise main repair workshop, customer counter and waiting area, staff offices/stores and toilet accommodation.

c)            Furniture repair workshop

This is accessed to the rear at lower ground floor level and comprises a basic workshop area accessed via a steel roller shutter door.

2.            Single lock up units

This comprises a terrace of 10 single garage lockup units, equivalent in size to standard single domestic garage units.  The terrace appears to be constructed of brick, with a flat or low pitched roof, finished in corrugated cement and metal sheeted roofs.  Each unit is served by a twin leaf timber door secured by metal hasps and padlocks.  Access to the units is via the shared yard to the rear.

3.            Double lock up units

This comprises a terrace of 3 double lock up units, two of which appear to be of standard ‘double garage’ size with the third unit, Unit C, being larger.  The construction of these is similar to the single units detailed above.

There is a yard to the rear which allows access to the lock-up units and a limited amount of parking.

The site boundary is shown on the Ordnance Survey extract below.

AREAS

We have not had the opportunity of measuring the single lock-up garage units, nor two of the three double lockups.  However all of these are considered to be of equivalent size to a standard single/double lock-up unit.  The areas of the three main commercial units plus the larger double lock-up are detailed below

Terms

TENANCIES

The block contains 3 commercial units, 3 double lock up units and 12 single lockup units.  All units are tenanted with exception of 2 single lockups which have recently been vacated.  The current rent roll is £22,XXXa, which will increase to £23,XXXa on letting the two vacant single lock-up units.  The vacant units account for only 3% of the total income.

Commercial units

The current rental levels and areas are summarised below:

We would summarise the leases in respect of these three tenancies as detailed below:

[Further detail to be confirmed upon supply of leases]

Lock-up garages

All the garages are generally let on informal annual lease agreements.  We have not had sight of all lease agreements however summarise the details of current rents and tenants below.  The two vacant units are highlighted in red.

The current income from the units is £8,XXXa and upon letting the vacant units, the expected rental income is £9,XXXa.

MANAGEMENT INFORMATION AND RENTAL PAYMENTS

The property is managed by Thomson Property Consultants and we can confirm that there are no rental arrears at present and that all tenants have paid rent in accordance with existing lease terms.

We can provide further information on the current tenancies including copies of leases in place for the commercial units and where available, copies of informal leases in respect of the lock-up garage units.

INVESTMENT CONSIDERATIONS

The property offers a number of asset management opportunities, some of which are highlighted below:

·         Opportunity to re-gear and formalise leases for existing commercial units

·         Instigate outstanding rent reviews [to be confirmed]

·         Alter current quarterly payments for lock-ups to single annual payments

·         Opportunity to increase rents in respect of lock-up units

·         Potential to dispose of parts of property to existing occupiers

·         Potential to split the title and sell as separate lots

TERMS

Offers in excess of £140,000 are sought.  A purchase at this level would provide an attractive yield of just under 16%, based on the current gross rent being achieved, assuming purchasers costs of 1.75%. 

ENERGY PERFORMANCE CERTIFICATES

The current EPC ratings for the commercial units are as detailed below:

·         25A+B Hamilton Road – Rating [TBC]

·         25C Hamilton Road – Rating [TBC]

·         25D Hamilton Road – Rating [TBC]

SUPPORTING INFORMATION

Further information can be made available to prospective purchasers, upon written request from the Sole Selling Agent.  This includes copies of leases where available, a copy of the title plan, Energy Performance Certificates etc.

VAT

We have been advised that there has been no election to waive exemption and therefore no VAT will be payable on the transaction.

LEGAL COSTS

Each party to bear their own legal costs.  The purchaser will be responsible for Stamp Duty Land Tax at the prevailing rate, although at the quoting price, the transaction would fall under the SDLT threshold.

VIEWING AND FURTHER INFORMATION

Due to the tenancies in place, we do not propose to undertake individual viewings in respect of the lock-up units.  Viewing of the commercial units can be arranged for seriously interested parties, upon written request via the Sole Selling Agent.

Under no circumstances should existing tenants be approached directly without the prior arrangement via the Sole Selling Agent.

Given the restricted viewing arrangements, our clients will consider offers which are subject to survey.

For any other queries, please contact:

Thomson Property Consultants

4^th Floor

82 Mitchell Street

Glasgow

G1 3NA

Tel          0141 530 5321

Fax         07006 037140

Contact:               Eric Thomson

Mob:                     07973 942489

Email:                    eric@thomsonproperty.co.uk