Office for sale in Cornwall Street South, Glasgow G41

£1,200,000 (£1,200,000/sq. ft)
Office for sale From 1 - 15,579 sq. ft*
Interested in this property? Call +44 20 8128 4245 * or Request Details

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Property description

Summary
95% let to The Scottish Ministers (nhs)

Secure income on offices until December 2020

Additional income from Telecoms Masts

The building may lend itself to alternative uses, subject to planning

Offers in excess of £1,200,000, subject to contract

Very attractive Net Initial Yield of 15.24%

Location
Glasgow is the largest city in Scotland, the commercial and industrial capital of the country and the administrative centre for the West of Scotland. The city has an urban population of approximately 625,000 people and a catchment population of over 2.8 million people within a 40 minute drive, making Glasgow the third largest urban centre in the UK.

The city benefits from 2 main train stations; Central Railway Station and
Queen Street Railway Station both of which provide regular services to
London and link to the wider Scottish Railway Network.

Glasgow is Scotland’s centre of employment and an economic powerhouse, generating £18 billion in gross value each year. There are 1.2 million working age people within a 45 minute commute of the city and 2 million within an hour. The city is home to an impressive list of blue chip companies and major global organisations across numerous
sectors including Santander, Morgan Stanley, The Student Loans Company, kpmg, Ministry of Defence, BT, Aggreko, Scottish Power, Scottish & Southern Energy, Barclay’s and JPMorgan Chase & Co.

Situation
The subjects are located within the Kinning Park area of Glasgow and are only 5 minutes’ drive from Glasgow City Centre. The building is situated on the west side of Cornwall Street South and the surrounding area is a mixed commercial location with Claremont Business Centre directly opposite the subjects and a variety of light industrial occupiers nearby including Trespass, Plumb Centre and Orb International.

Centurion Office Park is located approximately 500 metres to the east of the subjects with occupiers including Foster Wheeler, Graham Construction Group and wsp Group.

The location is very accessible to the M8, M74 and M77 Motorways linking throughout Central Scotland and beyond, with motorway junctions only 2 minutes’ drive from the building. Kinning Park subway station is accessed via a footbridge located 200m from the building and Shields Road underground station, offering Park and Ride facilities is only a short walk away.

Description
The building is of concrete framed construction with flat roof and provides a mixture of open plan and cellular office accommodation over ground, first, second and third floors. The building is accessed from Cornwall Street South via a modern aluminium/glazed frontage with security door entry and there is extensive free on-street parking available to the front of the building.

There are telecom masts located on the roof generating rental income from ctil, EE and H3G.

Internally there is office accommodation provided over 4 floors, with a small lock-up storage unit also at ground floor level. A 10 person passenger lift provides access to the upper floors and there are ladies and gents toilets on each floor accessed from the common landing. Kitchens are also provided on each floor and there is disabled access to the building together with disabled toilet.

The office accommodation is currently occupied by Scottish Ministers and each floor is occupied by individual nhs departments. The nhs has been the principal occupier of the building since 2001.

Accommodation
We are advised that the building has a total net lettable floor area of 1,447.32 sq m (15,579 sq ft).

Tenure
Heritable (Scottish equivalent of English Freehold)

Tenancy
The building is fully let with a total income of £193,500pa. The principal tenant is The Scottish Ministers (nhs) on a full repairing and insuring lease until 31st December 2020 at an annual rental of £160,000pa.

The ground floor lock-up unit is on an annual tenancy to Ian Murgitroyd on an annual tenancy until October 2020 – the passing rent is £5,500pa.

There are two telephone masts on the roof on the undernoted lease agreements:

Ctil 15 year lease from November 2015. Current rent £14,000pa
EE/H3G 20 year lease from October 2018. Current rent £14,000pa

Please refer to the Tenancy Schedule which is available to download.

Management
The building is currently managed and the leases allow for full recovery of Management Charges together with Management Fees. Copies of the Service Charge Budget are available to download in the Data Room.

The Scottish Ministers service charge is currently capped at a rate of £5.45/sq ft (excluding utilities) and is subject to an annual rpi increase. The service charge budget for the Year 2019/2020 is estimated to be approx. £5.22/sq ft excluding utilities.

A programme of works has been undertaken to the building in recent years including:

• Replacement of original metal-framed windows with modern pvc framed double glazed system
• Refurbishment of all toilets
• Extensive works to the roof
• Full refurbishment of lift including dda compliance, refurbishment of lift car and replacement of cables etc

Alternative Use
The building has an established use as offices and this can easily be continued. We also believe the building would lend itself to the establishment of a “health Hub” incorporating a variety of different professions including physiotherapists, health/fitness studios, chiropractors etc. Other alternative uses include business centre or conversion to residential, subject to obtaining Local Authority consent.


VAT


The property has been registered for VAT and it is envisaged the sale will be treated as a Transfer of a Going Concern (togc).

Proposal
Our client is seeking offers in excess of £1,200,000 (One Million Two Hundred Thousand Pounds), subject to contract, reflecting a net initial yield of 15.24%.

Investment Considerations
Opportunity to acquire freehold office investment;

Various nhs departments have been in the building since 2001;

Attractive Net Initial Yield of 15.24%;

97% of the income to undoubted covenants – The Scottish Ministers, ctil(Vodafone), EE etc;

Low maintenance/management input required.

For full details please visit our website or view PDF brochure below

* Sizes listed are approximations. Please contact the agent to verify actual sizes.

Property info

* Sizes listed are approximate. Please contact the agent to confirm actual size.

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For more information about this property, please contact
Singer Vielle, W1G on +44 20 8128 4245 * (local rate)

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Property descriptions and related information displayed on this page, with the exclusion of Running Costs data, are marketing materials provided by Singer Vielle, and do not constitute property particulars. Please contact Singer Vielle for full details and further information. The Running Costs data displayed on this page are provided by PrimeLocation to give an indication of potential running costs based on various data sources. PrimeLocation does not warrant or accept any responsibility for the accuracy or completeness of the property descriptions, related information or Running Costs data provided here.

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