Steven Newlands - Commercial Real Estate Showcase

The property comprises a building of steel frame construction, containing office accommodation across four floors. Construction on the property was completed in 2006.

The property is situated within close proximity to Glasgow Road (A724). Blantyre Railway Station is also located nearby.

Sale Notes:
The investment comprises office accommodation arranged over four flooors let in its entirety to Scottish Power UK Holdings Limited on a 125 year Full Repairing and Insuring lease commencing 20th April 2006.

The rent increases on an annual basis at 1.5% (compounded basis). The current rent payable is £1,224,196 per annum equating to £18.79 per sq ft. At the end of year 16, the tenant has a break option and an option to pay £8.4 million to reduce the rent to £1 per annum thereafter. Should Scottish Power not exercise the break option or the option to pay, they have the right to break the lease on 12 months notice for the remainder of the term. At the end of year 66, the tenant has the option to purchase the
property for £1.

Available at offers in excess of £10,000,000 (Ten Million Pounds Sterling) subject to contract and exclusive of VAT for a new long leasehold interest. A purchase at this level would reflect a net initial yield of 11.57%, after allowing for purchaser’s costs at 5.80%.