3-4 Queen Street is prominently located in Edinburgh city centre on the south side of Queen Street.
3 Queen Street comprises lower ground, ground and three upper floors of a modern townhouse office conversion. The ground and lower ground floors are let as one unit with its own dedicated entrance. The first, second and third floors are accessed via a shared entrance with 4 Queen Street.
4 Queen Street comprises a extensively refurbished, modernised part open-plan, part cellular offices with lift access to all floors creating a superb working environment with an attractive reception area. The lower ground, first, second and third floors of 4 Queen Street extend above and below the entrance to 5 Queen Street.
Location
Situated in Edinburgh’s prestigious New Town, this highly desirable location benefits from exceptional transport links, being within 5 minutes’ walk to York Place Tram Halt, Edinburgh Bus Station and Waverley Rail Station. Edinburgh city centre is a vibrant area with a mix of traditional offices, shops, hotels, serviced apartments and restaurants, alongside prime residential properties.
Accommodation
15,603 sq ft - A detailed view of the accommodation can be viewed in the attached brochure.
Terms
Proposal
Offers in excess of £XXX (Three Million Five Hundred Thousand Pounds) are sought for our client’s heritable interest in the property exclusive of VAT. A purchase at this level would provide a net initial yield of 6.38% assuming purchaser’s costs at 6.47%.
Asset Management Opportunities
Potential asset management opportunities include:
- Letting the vacant office space
- Seek to extend existing office leases at enhanced rents given current low base rents
- Enhancement to common parts and amenity to further drive rental growth
Service Charge
Service charge expenditure for 2022 is budgeted at £XXX for the whole building. Further detail available on request.
EPC Rating
The EPC rating for the property is D 52. A copy of the EPC Report and Action Plan is available upon request.
Tenure
Heritable Interest (Scottish Equivalent of English Freehold).
VAT
It is anticipated that the sale will be treated as a Transfer of Going Concern and therefore no VAT will be payable on the purchase price.
For a detailed view of the Tenancies including Current & Estimated Potential Rental Income, please view attached brochure.
Specification
- Modern entrance reception
- Passenger lift serving all floors in 4 Queen Street
- LED and modern light fittings
- Mixture of gas central heating and electric heating
- Mixture of floor boxes and perimeter trunking
- Dedicated toilets in no 3 Queen Street, communal toilets in no 4 Queen Street
- Shower in lower ground floor of 4 Queen Street
- Cellars
- 3 Queen Street CAT C listed and 4 Queen Street CAT A listed according to www.historicenvironment.scot
Investment Summary
- Multi let to a diverse tenant mix
- Superbly located close to St Andrew Square
- Current gross income of £XXX and net income of £XXX
- Low average passing rent of c £XXX sq ft
- Very strong reversionary potential
- Approximate NIA 15,603 sq ft and GIA 22,030 sq ft
- Minimal void and strong letting interest
- Numerous value add opportunities
- Future redevelopment potential
- Offers over £XXXm reflecting a NIY of 6.38% and Low capital Value of c £XXX sq ft on the Net Internal Area