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For Sale

16 ground lease investments, East Kilbride

Ground lease investment, Elgin

Offers over £1.6MNet Initial Yield 5.22%Reversionary Yield 6.68%Terminal Reversion 29.5%

Executive Summary

A unique opportunity to acquire a portfolio of freehold commercial ground lease investments.

17 individual interests let on long leases, located in Elgin and East Kilbride.

02

Buildings have been developed on each site;

• The Elgin interest is a nursing home and generates £42,000 per annum from the 2.27 acre site.

• The East Kilbride assets comprise 16 individual industrial units generating a combined income of £46,320 per annum from 1.95 acres.

• All the leases are upward only, with market based rent review provision.

47.5% of the total income is reviewed 5 yearly.


Our opinion of the total MRV is £113,067 per annum.

Our opinion of the total unencumbered rental value at the end of the respective lease terms is £500,000 per annum.

Combined rental income - £88,320 per annum.

A total of 4.22 acres held on an Heritable basis (Scottish equivalent of English freehold).

Elgin is let until May 2082 (68 years unexpired) incorporating a tenant only break as at May 2052 (38 years unexpired).

The 16 East Kilbride assets have an average unexpired term of 68 2/3rd years, with the longest unexpired term just over 80 years.

REVERSIONARY FREEHOLD COMMERCIAL GROUND LEASE INVESTMENT PORTFOLIO

Investment Rationale

03

Long Unexpired Lease Terms

The combined portfolio has an average unexpired lease term of just under 67 years to the tenant break (2052) in the Elgin lease.

Rental Growth

The portfolio has delivered 6.82% Compound Annual Growth Rate (CAGR) over a 10 year period.

The East Kilbride assets have delivered CAGR between 4.55% and 11.72%.

This compares with RPI’s CAGR between Nov 2003 and Nov 2013 of 3.27%.

Income Security

Ground leases offer considerable protection against both tenant default and falling rental values.

A ground rent is less than the total income received from the land and buildings. The long leaseholder is incentivised to continue to pay the ground rent as their loss is so great (and the ground lease owners gain suitably proportionate) if they do not.

Ground leases are protected against most falls in occupational market rental values. This is because the ground rent usually represents such a small percentage of the total rent from the land and buildings.

Capital Security

The ground lease Investment capital value is a small proportion of the long leasehold capital value, reflecting the respective size of their income streams. A default by a long leaseholder in the payment of the ground rent could lead to the freeholder receiving a significant capital windfall.


Rent Review Profile

All leases are upward only with market based rent review provision.



88% of the combined income is subject to a rent review within a five year period.

78.7% of the East Kilbride income is subject to a rent review within a five year period.

20% of the East Kilbride is subject to a rent review by the end of 2015.

Low Rental Gearing

The combined income equates to £20,929 per acre per annum and approximately £0.82 per sqft overall.

The current Elgin ground rent equates to 19.52% of the tenants reported March 2003 EBITDA.

An agreed sublease deal at Ref 11, 8 Lithgow Place demonstrates that the passing ground rent equates to 13.4% of the agreed occupational rent.

The East kilbride assets ground rents equate to a £0.42 per sq ft and £0.91 sq ft on the reported floor areas.

04

Rental Evidence

The portfolio is asset managed by the current owner.

The most recent evidence was created in respect of Ref.16, 16 Whin Place, East Kilbride. This November 2013 rent review was settled at a rent of £1,800 per annum, reflecting 6.27% CAGR and equating to £36,735 per acre pa, for the 0.049 acre site or £0.82 per sqft in respect of the 2,204 sqft building erected on site.

Ref 3, 51 Carron Place, East Kilbride is subject to a stepped rental increase as at 28 February 2016, when the current rent of £1,800 per annum rises to £2,200 per annum. The stepped rental reflects £39,286 per acre pa or £0.91 per sqft in respect of the 2,407 sqft building erected on site.

The long leasehold interest in Ref 11, 8 Lithgow Place, East Kilbride has been available to purchase for the sum of £200,000 for approximately six months. It is understood that agreement has been reached with a party who will occupy the property by means of a sub lease, with an option to purchase the long leasehold interest at the asking terms.

The sub lease rental level is understood to equate to £3.40 per sqft.

On this basis the current ground rent equates to 13.4% of the occupational rent.


Commercial Ground Lease Market

Overview

Ground Lease Investments in the United Kingdom were originally a product of the so called “Landed Estates”. Originally called ‘building leases’, owners of land granted long term leases of typically 125 years to developers allowing them to construct buildings in return for a share of the income the developer received from the building.

Traditionally, the main owners of ground leases have been bodies such as the Crown Estate, the Church Commissioners, and the City of London Livery Companies. Much of areas such as Regent Street in London (the Crown) and many City of London office buildings (Livery Companies) are subject to ground leases. The post war period also saw the increased use of ground leases by local authorities and other public bodies, as a way of rebuilding their cities. In Scotland the former Development Corporations utilised ground leases to fund the expansion of the former New Towns. In Aberdeen, the former Corporation of the City of Aberdeen and the former Grampian Regional Council released parcels of land to facilitate the first generation of North Sea oil development, whilst retaining the Heritable interest.


05


Todays Market

The recent property cycle witnessed

an increased appreciation of the core

strengths of ground lease investments by

institutional investors, debt funded borrowers

and private investors.

The asset’s liability matching attributes

are well suited for pension funds and long

term investors.

The impact of long term leases, both in

respect of improving weighted average

unexpired terms within a portfolio and the

significant reversion, provides a counter to the

valuation extremes experienced by traditional

forms of property investments, particularly

within a in volatile market.

Ground Lease Creation

A number of institutional funds have sought

to increase their exposure to this sector.

Ground leases tend to be held as long term

investments and not traded. This combined,

with a comparative restricted supply has

resulted in a number of funds considering

ground lease creation.

Pramerica Real Estate Investors were the first

fund to launch a specialised commercial

ground lease fund and have continued to

adapt and innovate the use of this asset

to satisfy their investment requirements by

also addressing a market characterised by

selective property funding.

Pramerica were the first to utilise ground

leases as a financial restructuring tool,

with the £90m ground lease creation of six

Principal Hayley hotels.

Since the Principal Hayley deal in 2011

several funds and occupiers have copied

and replicated this model.

Standard Life Investments created two

hotel based ground lease investments in

Edinburgh and Dundee with Apex Hotels in

2013. The combined value of £6.9m equated

to a NIY of 3.43%.

CBREI on behalf of BBC Pension Trust Ltd

acquired the freehold interest in Apex, Waterloo

Place, Edinburgh for a reported sum of £10m,

equating to a NIY of 3.25%.

Existing Ground Lease Transactions

SWIP recently acquired a portfolio of 32

industrial based commercial ground lease

investments in Aberdeen. The portfolio was

openly marketed by M&G in Q4, 2013. The

purchase price is understood to be in the

region of £23m equating to a NIY of c.4%.

Pramerica sold a 124 year unexpired ground

lease at Phoenix Business Park, Paisley in

2013. This asset comprised a 8.30 acre site,

underpinned with an 83,000 sqft modern

distribution unit.

This interest was sold for £650,000 equating

to a NIY of 4.07%.


06

VAT

The properties are elected for VAT. On this basis, VAT will be payable on the purchase price, however, it is anticipated that the sale will be effected by way of a Transfer of a Going Concern (TOGC).

EPC

In accordance with the relevant European Directive from 2010, the interests that are being sold do not comprise a building nor a building unit. Accordingly an EPC is not required as part of the sales process.

Legal Costs

Each party will be responsible for their own legal costs in connection with the transaction.


Interest is invited in the portfolio as a single lot. Offers in excess of £1.6m are sought for our client’s Heritable Interest in this portfolio. A purchase at this level provides a NIY of 5.22% and an RY of 6.68%, assuming purchaser’s costs of 5.8%.

Proposal

07

Tenancy Schedule


Ref Address Tenant Lease Period Lease Start Lease End Years UXP

Review Frequency

Yearly

Next Review

Area sqft Acres Rent PA Rate

psfRate per

acrePrevious Rent PA

Cumulative Return

Compound Annual

Growth Rate

Rateable Value

SSpynie Nursing Home, Duffus Road, Elgin

Intobeige Ltd 90 Years (T Break at 2052) 20.08.1992 29.05.2082 68.25 5 01.04.2017 21,657 2.27 £42,000 £1.94 £18,502 £18,000 133% 4.33% £80,000

1 East Kilbride, 1 & 3 Albion Way The Donaldson SSAS99 Years, 3 months &

11 days (Ground Lease)18.02.1977 28.05.2076 62.25 10 28.05.2017 16,027 0.345 £6,750 £0.42 £19,565 £3,200 111% 7.75% £56,000

2East Kilbride, 83 Carron Place, Kelvin Industrial Estate

Alexander William Adam

99 Years, 4 months & 17 days (Ground Lease)

12.01.1995 28.05.2094 80.25 10 28.02.2015 2,465 0.057 £2,250 £0.91 £39,474 £750 200% 11.61% £8,600


Mrs Marion & Mr James Hay

99 Years & 3 months (Ground Lease) *1

28.05.1991 27.05.2090 76.25 10 28.02.2021 2,407 0.056 £1,800 £0.75 £32,143 £1,100 64% 5.05% £9,100


M & B Dewhurst T/A Hi-tech (EK) Ltd

101 Years & 1 day (Ground Lease)

28.12.1971 28.12.2072 58.83 15 28.11.2018 2,656 0.058 £1,500 £0.56 £25,862 £560 168% 6.79% £8,700

5East Kilbride, 20/22 Carron Place, Kelvin Industrial Estate

GCH Precision Engineering Ltd

99 Years, 5 months & 1 day (Ground Lease)

28.06.1973 28.11.2072 58.75 15 28.11.2018 5,012 0.118 £2,250 £0.45 £19,068 £1,000 125% 5.56% £15,900


David Nicol99 Years, 4 months &

25 days (Ground Lease)03.07.1978 27.11.2077 63.75 10 28.11.2018 2,361 0.054 £2,000 £0.85 £37,037 £940 113% 7.84% £8,600

7East Kilbride, 38 Singer Road, Kelvin Industrial Estate

Thistle Bearings & Engineering Products Ltd


28.03.1991 28.05.2090 76.25 10 28.05.2021 2,465 0.056 £2,000 £0.81 £35,714 £1,100 82% 6.16% £8,800

8East Kilbride, 26/28 Singer Road, Kelvin Industrial Estate

Nercon Ltd99 Years & 17 days

(Ground Lease)12.05.1994 28.05.2093 79.25 10 28.11.2014 4,698 0.112 £2,000 £0.43 £17,857 £1,100 82% 6.16% £16,200


Hunter Laing & Company Ltd


19.08.1972 28.11.2073 59.75 10 28.11.2014 8,594 0.198 £5,000 £0.58 £25,253 £1,650 203% 11.72% £25,500

10 East Kilbride, 9 Colvilles Place Ailsa Machinery Ltd99 Years, 3 months &


11 East Kilbride, 8 Lithgow PlaceInstrument Transformers Ltd


26.06.1987 25.11.2086 72.75 10 28.11.2017 7,673 0.176 £3,500 £0.46 £19,886 £2,000 75% 5.76% £25,750

12 East Kilbride, 14 Westgarth PlaceFrederick Stephen Hughes t/a Taylor Freezer Scotland


28.08.1989 28.11.2088 74.75 10 28.11.2019 2,262 0.048 £1,600 £0.71 £33,333 £825 94% 6.85% £9,000

13 East Kilbride, 44 Arrotshole Road Therom Ltd99 Years, 4 months &

30 days (Ground Lease)29.12.1978 27.05.2078 64.25 10 28.05.2019 2,138 0.049 £1,220 £0.57 £24,898 £628 94% 6.87% £7,000

14 East Kilbride, 33 Fairfield Place Insulam Ltd99 Years, 5 months &


15 East Kilbride, 41 Fairfield PlaceLaurence French Jacobsen T/A Jacobsen French


26.01.1979 28.05.2078 64.25 10 28.05.2019 8,325 0.195 £3,900 £0.47 £20,000 £2,500 56% 4.55% £24,250

16East Kilbride, 16 Whin Place, East Nerston

Hornbuckle Mitchell Trustees Ltd


15.07.1983 28.11.2082 68.75 10 28.11.2023 2,204 0.049 £1,800 £0.82 £36,735 £980 84% 6.27% £8,800

TOTALS 68.64 107,507 4.220 £88,320 £0.82 £20,929 £43,069 115% 6.82%

Notes East Kilbride Ground Leases require minimum of 12 months notice for Rent Reviews *1 Stepped Rental. Rental increases to £2,200 pa from 28.02.2016

S

B9012 Duffus Road

Hamilton Drive

Morriston Rd

Duncan Drive

Woodlands Ln

SpynieHospital

LAND REGISTEROF SCOTLAND

Officerʼs ID / Date

NORDNANCE SURVEY

NATIONAL GRID REFERENCESurvey Scale

C

MOR6419140m

1/2500 NJ2063NW NJ2063NE NJ2064

4670

TITLE NUMBER

20/5/2008

CROWN COPYRIGHT © - Produced from REGISTERS DIRECT on at with the authority of Ordnance Survey pursuant to section 47 of the Copyright, Designs and Patents Act 1988. Unless that act provides a relevant exception to copyright, the copy must not be copied without the prior permission of the copyright owner. This copy has no evidential status. OS Licence No.

04/10/2013 09:27

100041182.

Spynie Nursing Home Duffus Road Elgin IV30 5JG

Ground Lease Investment

08

• Let until May 2082 (incorporating a tenant’s only break option as at May 2052);

• Current rent, £42,000 per annum

• 4.33% Compound Annual Growth Rate since lease commencement

• Open market, five yearly upward only rent review pattern

• 2.27 acres

TenancyThe subjects are leased to Intobeige Ltd from 20th August 1992, expiring 28th May 2082, subject to a tenant’s right to break the lease on 28th May 2052, providing 12 months prior notice.

The rent, agreed at the 2012 rent review is £42,000 per annum, payable quarterly in advance, subject to five yearly upward only reviews. The next rent review is Whitsunday (now 1st April) 2017.

The rent is reviewed to a market rent reflecting the rental value of a ground lease for a development in accordance with the permitted use (a 60 bed nursing home).

The stated area within the lease is 9,180 sq m (0.918 hectares).

TenureThe property is held on a Heritable title, equivalent of English Freehold.

Rental ProfileThe initial was £18,000 per annum. The passing rent equates to approximately £18,500 per acre and demonstrates a Compound Annual Growth Rate of 4.33% since the lease commenced.

An analysis on a per bedroom basis devalues the rent to £700 per annum.

THE OPPORTUNITY


09

The PropertyThe property comprises a generally level and regular shaped site of 0.93 hectares (2.27 acres) or thereby. The approximate boundaries are identified on the plan.

The building has not been measured, but records estimate a gross internal floor area of approximately 2,012 sqm (21,657 sqft).

The nursing home dates from the early 1992 and is arranged on one level and in three units. The building is laid out to provide 56 bedrooms, all with en-suite bathroom facilities. Car parking for approximately 20 cars is provided on site.

Spynie Nursing Home is situated adjacent to Spynie Hospital and lies one mile to the north west of Elgin town centre. The site is located in Bishopmill, a predominately residential area, that is identified as a core residential expansion area within the relevant plans. Local developer, Robertson of Elgin have recently completed part of a phased development, immediately to the north of the site.

Elgin is a prosperous market town with a population of approximately 21,000 and a district catchment of approximately 95,000. It is the largest town between Inverness, 36 miles to the west, and Aberdeen, 65 miles to the south east. It is the administrative centre of Moray. The local economy is dominated by the MoD with two nearby military bases accounting for 21% of local employment. Agriculture and forestry are important local industries: Elgin’s catchment includes the Speyside whisky distilleries. Other significant employers include Johnston’s of Elgin knitwear, Baxters Foods and Walkers Shortbread. Tourism is a significant local employer.

As at September 2013 there were five registered nursing care homes in Elgin, including Spynie Nursing Home, providing approximately 250 beds.

A Care Inspectorate report dated January 2013 in respect of Spynie Nursing Home, stated that the quality of care and support was, ‘very good’ and the quality of environment, ‘good’.

Rateable ValueThe property has a Rateable Value of £80,000.

Spynie Nursing Home Duffus Road Elgin IV30 5JG




NORDNANCE SURVEY


C

MOR6419140m

1/2500 NJ2063NW NJ2063NE NJ2064

4670

TITLE NUMBER

20/5/2008


04/10/2013 09:27

100041182.

CovenantIntobeige Ltd (0171078) incorporated in March 1983. 100% of the share capital of Intobeige Ltd was acquired by Popular Care Ltd (05675706) in February 2013.

Intobeige Ltd accounts for the year end 31 March 2013 state;

Sales - £1,612,585 (2012 - £1,595,316);

EBITDA - £215,214 (2012 - £280,723).

Popular Care Ltd’s principal activity is the operation of nursing and residential care homes for the elderly.

Popular Care Ltd’s accounts for the financial year end prior to the acquisition of Intobeige Ltd indentify a turnover of £2,185,664 and a profit before tax of £142,415.


10

Elgin

Ground lease investment, Elgin

S. Spynie Nursing Home

TownCentreA96

No

rth Stre

et A

941

Lesmurdie Road

Moss Street

A941 New

Elgin

Rd

Dufuss Road B9012

Morriston Road

West RoadA96 East Road

Plu

scarden Road

Hay Street A941 Station Rd

A96

S



NORDNANCE SURVEY


C

MOR6419140m

1/2500 NJ2063NW NJ2063NE NJ2064

4670

TITLE NUMBER

20/5/2008


04/10/2013 09:27

100041182.

S

N


11

East Kilbride

Ground lease investments, East Kilbride

1. 1/3 Albion Way2. 83 Carron Place3. 51 Carron Place4. 61 Carron Place5. 20/22 Carron Place6. 8 Carron Place7. 38 Singer Road8. 26/28 Singer Road9. 89 Carron Place

10. 9 Colvilles Place

11. 8 Lithgow Place12. 14 Westgarth Place13. 44 Arrotshole Road14. 33 Fairfield Place15. 41 Fairfield Place

16. 16 Whin Place

ZONE A

ZONE B

ZONE C

ZONE D

East KilbrideGolf Club

TownCentre

Queensway A726

A726

Stroud Road

Stewartfield Road

Greenhills Road

Newhousemill RoadWe

stwoo

d H

ill

Eaglesham Rd

St L

eona

rds

Rd

A725 Hamilton Road

Kin

gsw

ay

A72

5

A72

6

A74

9

Greenhills Road

C

A

B

D

N


12

East Kilbride

1. 1/3 Albion Way2. 83 Carron Place3. 51 Carron Place4. 61 Carron Place5. 20/22 Carron Place6. 8 Carron Place7. 38 Singer Road8. 26/28 Singer Road9. 89 Carron Place

ZONE A


2

6

53

7

8

1

4

9

N


1/3 Albion Way East Kilbride G75 0YN


TenureFreehold.

LocationAlbion Way forms part of the Kelvin Industrial Estate, situated to the South of the centre of East Kilbride and twelve miles South of Glasgow.

The accommodation on the estate offer a mixture of stand alone and terraced single storey industrial units, generally constructed around steel frames. Each unit has the benefit of a vehicular entry door with units having a variety of secured yard and common parking/yard areas.

Kelvin Industrial Estate is East Kilbride’s premier industrial location and lies approximately 1 mile south of the town centre. East Kilbride is Scotland’s sixth largest town and has a population of 89,000 people. It is regarded as Scotland’s most successful new town and has attracted more that 1,100 companies, including Motorola, J Sainsbury’s and Rolls Royce. Reflecting its important strategic location East Kilbride benefits from excellent road communications. The East Kilbride Expressway (A725) links the town to the M74, M73 and M8 and the recently completed Glasgow Southern Orbital Link provides a rapid connect to the south west of Glasgow and to the M77.

DescriptionThe property comprises a site area of 0.345 acres.

Buildings extending to 16,027 sqft have been erected on the site.

TenancyThe entire property is let to The Donaldson SSAS for a term of 99 years, 3 months and 11 days.

Lease expiry – 28/5/2076

Next rent review – 28/5/2017

Rent review frequency – 10 yearly

Rent review basis – upwards only, open market

Current Rent – £6,750 per annum

Previous Rent – £3,200 per annum

CommentsThe long leasehold interest was assigned for a premium of £250,000 in 2004.

THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

9

2

435

6 7

8

13

1


83 Carron Place Kelvin Industrial EstateEast Kilbride G75 0YL


TenureFreehold.

LocationThe estate comprises more than 40 industrial units for rent the majority of which have recently been refurbished. The available units range from 1,000 sqft to 6,500 sqft, many also include office space. The units either benefit from an exclusive secure yard or generous communal yard space. Ample car parking is available on site.

Carron Place is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride’s town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.


A building extending to 2,465 sqft has been erected on the site.

TenancyThe entire property is let to Alexander William Adam for a term of 99 years, 4 months and 17 days.






Previous Rent – £750 per annum

CommentsThe long leasehold interest was assigned for a premium of £36,500 in 2009. 83 and 85 Carron Place are currently available to let at a quoting rent of £9,000 per annum per unit.

THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

2

94

35

6 7

8

14

2




TenureFreehold.

Location The estate comprises more than 40 industrial units for rent the majority of which have recently been refurbished. The available factory sizes range from 1,000 sqft to 6,500 sqft many also include office space. The units either benefit from an exclusive secure yard or generous communal yard space. Ample car parking is available on site.

Carron Place is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.



TenancyThe entire property is let to Mrs Marion and Mr James Hay for a term of 99 years and 3 months.





Current Rent – £1,800 per annum*


CommentsThe long leasehold interest was assigned for a premium of £60,000 in 2004 and £70,500 in 2007.

*There is a stepped rental increase to £2,200 per annum from 28.02.2016.

THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

3

9

2

45

6 7

8

15

3




TenureFreehold.

LocationThe estate comprises more than 40 industrial units for rent the majority of which have recently been refurbished. The available factory sizes range from 1,000 sqft to 6,500 sqft, many also include office space. The units either benefit from an exclusive secure yard or generous communal yard space. Ample car parking is available on site.




TenancyThe entire property is let to M&B Dewhurst t/a Hi-Tech (EK) Ltd for a term of 101 years and one day.


Next rent review – 28/28/11/2018





THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

49

2

35

6 7

8

16

4


20/22 Carron Place Kelvin Industrial EstateEast Kilbride G75 0YL


TenureFreehold.


Carron Place is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride’s town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.



TenancyThe entire property is let to GCH Precision Engineering Ltd (SC298454) for a term of 99 years, 5 months and one day.







THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

5

9

2

43

6 7

8

17

5




TenureFreehold.





TenancyThe entire property is let to David Nicol for a term of 99 years, 4 months and 25 days.








THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

6

9

2

435

7

8

18

6


38 Singer Road Kelvin Industrial EstateEast Kilbride G75 0XS


TenureFreehold.

LocationThe estate comprises a number of terraced industrial units. The available factory sizes range from 2,000 sqft to 13,000 sqft and many include office space. The warehouse areas are to the rear with separate pedestrian access to the front. The units benefit from having the use of a large communal yard. Ample car parking is available on site.

The estate is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.

Six miles from M74 Junction 5, Glasgow Airport 13 miles.



TenancyThe entire property is let to Thistle Bearings & Engineering Products Ltd (SC075852) for a term of 99 years, 2 months and one day.







THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

7

9

2

435

6

8

19

7


26/28 Singer Road Kelvin Industrial EstateEast Kilbride G75 0XS


TenureFreehold.

LocationThe estate comprises a number of terraced industrial units. The available factory sizes range from 2,000 sqft to 13,000 sqft and many include office space. The warehouse areas are accessed to the rear with separate pedestrian access to the front. The units benefit from having the use of a large communal yard. Ample car parking is available on site.

The estate is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.

Six miles from M74 Junction 5, Glasgow Airport 13 miles.



TenancyThe entire property is let to Nercon Ltd for a term of 99 years and 17 days.







THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

8

9

2

435

6 7

20

8




TenureFreehold.

LocationUnit 89 forms part of a terrace of similar properties which are of traditional steel portal frame construction with the external elevations clad in a combination of corrugated sheeting and painted render. The units have pedestrian access doors to the front elevation with a communal car parking area to the front of the subjects and vehicle access is provided to the rear from the communal loading/yard area.

The subjects are situated on the southernmost side of Carron Place, within the established Kelvin Industrial Estate, which lies to the south of East Kilbride town centre. The town of East Kilbride is situated approximately 10 miles to the south east of Glasgow City Centre and is now one of Scotland’s largest towns having a resident population in the region of 75,000. Kelvin Industrial Estate is one of the largest industrial estates within the town and links ultimately with the A725 providing onward access to the M74 and Scotland’s motorway networks. The surrounding area is a well-established industrial location with occupiers in the immediate vicinity including C&M Bridal Design,AKP Contracts Autobaux, Hargreaves and Plumbing Trade Supplies.



TenancyThe entire property is let to Hunter Laing & Company Ltd (SC442464) for a term of 102 years, 3 months and 10 days.




Rent review basis – upwards only, based upon the formula; A x 1.375, where A is the open market rental value.




THE OPPORTUNITY

Stroud Road

Greenhills Road

Singer Ro

ad

Colvilles R

oad

Carro

n Place

Albion Way

Carron Place

1

9

2

435

6 7

8

21

9


9 Colvilles Place East Kilbride G75 0PZ


TenureFreehold.

LocationThe property comprises a mid terraced unit. The warehouse areas are accessed by roller shutter doors to the rear, with separate pedestrian access to the front. Each property benefits from a secure yard to the rear.

Colvilles Road is located in Kelvin Industrial Estate approximately 1.5 miles south east of East Kilbride’s town centre adjacent to the A7126 Strathaven Road. Existing occupiers on the same estate include Sainsbury’s (Distribution Centre), Jeyes and several trade counter operators including The Plumb Centre and the BSS Group.

The estate comprises terraced and stand-alone industrial units. The warehouse areas are accessed by roller shutter doors with separate/shared pedestrian access to the front. The unit benefits from exclusive yard space. Ample car parking is available on site.

The local road network provides direct links to Junction 5, M74 via the A725 East Kilbride Expressway for Glasgow, the south and the national motorway system (M73, A/M8 etc) whilst the M77 is also easily accessed via the A726 Glasgow Southern Orbital Road.



TenancyThe entire property is let to Ailsa Machinery Ltd (SC147434) for a term of 99 years, 3 months and 16 days.







THE OPPORTUNITY

10

Stra

thav

en R

oa

d

A72

6

Colvilles Road

Colvilles PlaceStroud Road

Glenfield Road

Kelvin RdKelvin Rd

22

10


23

East Kilbride

11. 8 Lithgow Place12. 14 Westgarth Road13. 44 Arrotshole Road14. 33 Fairfield Place15. 41 Fairfield Place

ZONE C

12

1115

14

13



8 Lithgow Place East Kilbride G74 1PW


TenureFreehold.

LocationThe property is located in the popular College Milton area occupying a prominent position close to Queensway. The accommodation includes workshop space served by a single vehicular door opening on to an area of communal yard and there is a two storey office to the front. The property offers excellent trade counter potential. The office space provides both open plan and cellular areas.



TenancyThe entire property is let to Instrument Transformers Ltd (SC054448) for a term of 99 years, 5 months and three days.







CommentsThe long leasehold interest is being marketed for the sum of £200,000. After an approximate period of six months it is understood that agreement has been reached, whereby a sub tenant will occupy the building on a sublease incorporationg an option to acquire the longleasehold interest at the asking terms. The sublease rental level equates to £3.40 per sq ft overall.

THE OPPORTUNITY

11

Queensway A726

Glenburn Rd

Milton Rd W Mains Road

Arro

tsho

le Rd

Wes

tgarth Pl

Fairfield Place

Kirktonholme Road

Westerdale

Hawbank Rd

Eaglesham Rd

A726

13

12

14

15

24

11


14 Westgarth Place College Milton Industrial Estate East Kilbride G74 5NT


TenureFreehold.

LocationThe property is situated in the College Milton Industrial Estate, just off Queensway (A726) in East Kilbride. The A727 is nearby and links in the west to the M77 and thereafter to Glasgow. The Hairmyres Railway Station is close to the property, just south of Queensferry.



TenancyThe entire property is let to Frederick Stephen Hughes t/a Taylor Freezer Scotland for a term of 99 years, 3 months and one day.








THE OPPORTUNITY

25

12

11

Queensway A726

Glenburn Rd


Arro

tsho

le Rd

Wes

tgarth Pl

Fairfield Place

Kirktonholme Road

Westerdale

Hawbank Rd

Eaglesham Rd

A726

13

12

14

15


44 Arrotshole Road East KilbrideG74 5DN


TenureFreehold.

LocationThe property comprise of a mid-terraced single storey unit of modern construction having steel frame with infill brick walls. Communal yard and parking facilities are available.



TenancyThe entire property is let to Therom Ltd (SC041165) for a term of 99 years, 4 months and 30 days.







THE OPPORTUNITY

26

13

11

Queensway A726

Glenburn Rd


Arro

tsho

le Rd

Wes

tgarth Pl

Fairfield Place

Kirktonholme Road

Westerdale

Hawbank Rd

Eaglesham Rd

A726

13

12

14

15


33 Fairfield Place East KilbrideG74 5LP


TenureFreehold.

LocationEast Kilbride lies approximately 9 miles south east of Glasgow City Centre, with easy access from the M8, via the A725 Expressway leading to the Kingsway and via the A726. The estate is located in Fairfield Place, just off of West Mains Road of the College Milton area of East Kilbride. The units are of steel frame design with brick infill walls and a metal profile clad roof, each with a pitched centralised glazed section providing maximum natural light. Externally to the rear of each unit there is a secure yard with communal parking to the front.



TenancyThe entire property is let to Insulam Ltd (SC106668) for a term of 99 years, 5 months and 28 days.







THE OPPORTUNITY

27

14

11

Queensway A726

Glenburn Rd


Arro

tsho

le Rd

Wes

tgarth Pl

Fairfield Place

Kirktonholme Road

Westerdale

Hawbank Rd

Eaglesham Rd

A726

13

12

14

15



TenureFreehold.

LocationEast Kilbride lies approximately 9 miles south east of Glasgow City Centre, with easy access from the M8, via the A725 Expressway leading to the Kingsway and via the A726. The estate is located in Fairfield Place, just off of West Mains Road of the College Milton area of East Kilbride. The units are of steel frame design with brick infill walls and a metal profile clad roof, each with a pitched centralised glazed section providing maximum natural light. Externally to the rear of each unit there is a secure yard with communal parking to the front.



TenancyThe entire property is let to Laurence French Jacobsen t/a Jacobsen French for a term of 99 years, 4 months and three days.







THE OPPORTUNITY

28

15

11

Queensway A726

Glenburn Rd


Arro

tsho

le Rd

Wes

tgarth Pl

Fairfield Place

Kirktonholme Road

Westerdale

Hawbank Rd

Eaglesham Rd

A726

13

12

14

15

41 Fairfield Place East KilbrideG74 5LP


16 Whin PlaceEast Nerston East Kilbride G74 3XS


TenureFreehold.

Location The estate comprises a number of terraced industrial units, each approximately 2,000 sqft and some include office space. Ample car parking is available on site.

The estate is located in Nerston Industrial Estate just off the A725 East Kilbride expressway approximately one mile to the north of East Kilbride’s town centre. Nerston is a well established industrial estate, existing occupiers include Rolls Royce, Plumbase, Martin Plant Hire and Robert Wiseman & Son.

The units either benefit from an exclusive secure yard or generous communal yard space. Ample car parking is available on site.

5 Miles from M74 Junction 5; Glasgow Airport 12 miles.



TenancyThe entire property is let to Hornbuckle Mitchell Trustees Ltd for a term of 99 years, 4 months and 14 days.







CommentsThe long leasehold interest was assigned for a premium of £80,000 in 2007 and £100,000 in 2009.

THE OPPORTUNITY

29

16

16

Stoneymeadow Rd

A749 Kin

gsw

ay

Hamilto

n Rd

A72

5

Hamilton Rd A725

B783 E Mains Rd

Blackbraes Rd

A725

Albany


Steven Herd [email protected] DD: 0131 226 4014 M: 07515 376733

David Henderson [email protected] DD: 0131 226 4015 M: 07789 778838

Contact

hendersonherd115 George StreetEdinburgh EH2 4JN

T: 0131 226 4004F: 0131 225 8272

DISCLAIMER 2014

Hendersonherd for itself and for the vendor as agents for the vendor give notice that:

1. We provide the information in these particulars for guidance to intending purchasers, or any other third parties and they are for your general information only and will be used at your own risk.

2. We will use all reasonable endeavours to ensure the accuracy of information, however, we do not guarantee or warrant the accuracy or completeness, factual correctness or reliability of any information in the particulars (especially as the information may have been obtained from third parties) and do not accept any liability for any errors or omission including any inaccuracies or typographical; errors.

3. Any interested purchasers or any third party should not view the information in the particulars as statements or representations of fact and should satisfy themselves that the facts and the specific details in t he particulars are correct and accurate, especially in relation to site areas and other measurements through inspection or other means, if appropriate, and will be responsible for taking independent surveys or valuations before entering into any legally binding transaction in respect of the property or premises that is the subject of these particulars.

4. We have not made any investigations or otherwise of any issues concerning pollution and potential land, building, air or water contamination. Prospective purchasers or any third parties must undertake their own enquiries and satisfy themselves in this regards.

5. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT.

6. Property Misdescriptions Act 1991: These details are understood to be correct at the time of compilation but may be subject to subsequent amendment.

7. Requirements of Writing (Scotland) Act 1995: This document is provided for record purposes only and is not intended to create, nor to be relied upon as creating any contractual relationship or commitment. Any contract shall only be entered into by way of an exchange of Missives between solicitors.

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