Whitemyres Business Centre Whitemyres Avenue Aberdeen, AB16 6HQ

FOR SALEHigh Yielding Multi-let Industrial Investment

• Whitemyres Business Centre is situated 2 miles West of Aberdeen city centre in the well-established Whitemyres Industrial Estate

• The property is held on a Ground Lease from Aberdeen City Council expiring 2122 at a current passing ground rent of £33,600* p.a. exclusive

• The asset comprises 13 units totalling 17,104 sq ft (1,588.96 sq m)

• Passing rent of £198,900 p.a. exclusive (after estimated ground rent deduction)

• WAULT of 2.83 years term certain and 3.85 years to expiry

• Offers in excess of £1.85m / 10.13% Net Initial Yield

* Passing rent is £26,976 p.a. £33,600 is the ERV estimated to be agreed on settlement of the outstanding rent review

INVESTMENT SUMMARY

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ 2

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ

LOCATIONAberdeen is Scotland’s third largest city with a population in the region of 210,000 and a catchment population of over 500,000. The city is the energy capital of Europe and the preferred northern hemisphere HQ location for all ma-jor producers and service contractors.

SITUATIONThe subjects are located on the north side of Whitemyres Avenue, approximately 2 miles west of Aberdeen city centre in the well-established Whitemyres Industrial Estate. The location offers excellent transport links due to its close proximity to North Anderson Drive (A92) and the new AWPR bypass road (A90), linking the north and south of the city.

The estate attracts a variety of occupiers included trade counters, building supplies, motor-trade and oil and gas related businesses.

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S t o n e h a v e n

R i v e r De e

Rive r D

on

L a n g S t r a c h t

N D e e s i d e R d

A956

A92

A90

A92

A90

A90

ABERDEEN

WHITEMYRESBUSINESS CENTRE

DESCRIPTIONThe subjects comprise a modern industrial/commercial development of 13 units, together with a 2 storey office building extending to 3,843 sq ft. The estate consists of 3 terraces of industrial units of steel portal frame construction having concrete block and profiled metal sheet clad walls under pitched profile metal sheeted roofs. Each unit benefits from a roller shutter door with provision for offices and toilet facilities.

The office building is of a modern construction arranged over ground and first floor, under a pitched profiled metal sheeted roof. Internally the offices are generally cellular in nature featuring gas central heating, fluorescent lighting and double glazing. There is provision for kitchen facilities together with male and female toilets at each level.

There is demised car parking for 64 vehicles on site.

WHITEMYRESBUSINESSS

CENTRE

WHITEMYRES AVENUE

UNIT 1

UNIT 2

UNIT 3

UNIT 4

UNIT

5

UNIT

6

UNIT

7

UNIT

8

UNIT

9

OFFICE

UNIT 10

UNIT 11

UNIT 12

UNIT 13

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ 4

TENANCY

Unit Area Tenant Lease Start Next Review Date

Next Break Lease Expiry Term Certain Income

Term to Expiry

Rent (£ Per Annum)

Rental Rate

(sq.ft.)

ERV ERV (Rate psf)

Comments

1 & 2 2,852 Style Office Solutions Ltd 1-Sep-2008 31-Aug-2023 4.50 4.50 £40,250 £12.27 £15.00 £42,780

3 & 4 2,852 Vodafone Enterprise UK 1-Aug-2000 31-Jul-2020 31-Jul-2020 31-Jul-2025 1.42 6.42 £36,000 £12.62 £15.00 £42,780 Unit 4 has been sublet to Kevin Youngson, trading as KJY Smart Repairs at £18,500 until 28 July 2020. Unit 3 has been sublet to Windscreens Scotland Limited at £18,500 until 28 July 2020.

5 725 Vehicle Solutions Aberdeen Ltd

6-Mar-2017 05-Mar-2022 3.01 3.01 £11,000 £15.17 £15.00 £10,875 Deposit of £5,000 held. Schedule of condition.

6 726 Nodram Decorators (North) Ltd guaranteed by Nodram Decorators Ltd

27-Jun-2016 26-Jun-2021 2.32 2.32 £11,250 £15.50 £15.50 £11,250 726 sq ft of warehouse plus 426 sq ft of mezzanine. Rent deposit of £2,812.50 held. Mezzanine rentalised.

7 & 8 1,475 Motrale Ltd 4-Apr-2003 3-Apr-2022 3.09 3.09 £18,500 £12.54 £15.00 £22,125

9 725 Westholme interiors Limited

31-May-2018 31-May-2021 30-May-2023 2.25 4.25 £11,000 £15.17 £15.00 £10,875 2 months rent free if they don’t operate the break in 2021. Break upon 6 months notice. £2,750 + VAT rent deposit held. Schedule of condition attached to the lease.

10 & 11 & 12 3,082 Inspectahire Instrument Co Ltd

25-Jun-2007 24-May-2021 2.23 2.23 £39,000 £12.65 £13.00 £40,066

13 824 Robertson Facilities Management Ltd sub let to Nicol Valentine Limited

12-Sep-2011 11-Sep-2020 1.53 1.53 £12,500 £15.17 £15.00 £12,360 Unit sublet to Nicol Valentine Ltd (SC061309) with a co terminus lease.

Office GF & FF

2,497Robertson Construction Eastern Ltd

1-Jun-2009 23-Sep-2020 1.57 1.57 £34,500 £13.82 £14.00 £34,958

Office GF 1,346Robertson Facilities Management Ltd

24-Sep-2010 23-Sep-2020 1.57 1.57 £18,500 £13.74 £14.00 £18,844

Ground Rent -£33,600 1.12 acre ground lease from Aberdeen City Council until November 2122. 5 Yearly rent reviews. Passing rent £26,976 (£24k per acre). November 2017 ground rent review outstanding. Assume settlement at £30,000 per acre = £33,600 p.a. (estimated)

TOTAL 17,104 £198,900 £13.29 £246,913

Term certain WAULT of 2.83 years and WAULT to expiries of 3.85 years.

SERVICE CHARGEThe service charge currently runs at £5.03 psf for the offices and £1.55 psf for the industrial.

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ 5

TENURELeasehold interest. The property is held on a 125 year leasehold interest from Aberdeen City Council starting 28 November 1997 and expiring 27 November 2122, leaving over 104 years unexpired. The rent is subject to 5 yearly, upward only rent reviews to market value. The current passing rent is £26,976 p.a. The November 2017 review remains outstanding and we estimate a settlement at £33,600 p.a. which has been accounted for in yield calculations.

SITEThe site extends to approximately 1.12 acres.

COVENANTSA suite of covenant information and rent payment history can be provided to seriously interest parties.

EPCA full suite of EPC’s is provided in the data-room.

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ 6

VATThe properties are elected for VAT however it is anticipated that any sale can take place by way of a Transfer of a Going Concern (TOGC).

CAPITAL ALLOWANCESNo capital allowances are available.

DATA-ROOMData-room access will be provided for seriously interested parties.

VIEWINGSViewings are by appointment only and to be arranged via one of the selling agents.

Whitemyres Business Centre Whitemyres Avenue, AB16 6HQ 7

The Agents for themselves and for vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intended purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representation or warranty whatever in relation to this property. March 2019.

PROPOSALWe have been instructed to seek offers over £1,850,000 (One million eight hundred and fifty thousand pounds) exclusive.

A purchase at this level reflects a Capital Value of £108 per sq ft and an attractive Net Initial Yield of 10.13% (on the net income of £198,800 after deduction of ground rents) assuming prevailing purchaser’s costs and LBTT.

CONTACT DETAILS

Edinburgh Office: 59 George Street, Edinburgh, EH2 2JG

Jamie Thain – jamie.thain@galbraithgroup.com0131 240 6994 / 07798 647 620

Will Sandwell – will.sandwell@galbraithgroup.com0131 240 6997 / 07801 266 373

Aberdeen Office: 25 Albyn Place, Aberdeen, AB10 1YL

Ken Shaw – ken.shaw@ryden.co.uk01224 569 664 / 07836 556 768