• Edinburgh is the UK’s most prosperous city outside London

• Prime position in the heart of the City Centre

• Highly Secure Income – Let to A.F. Blakemore (Net Assets £78.5m)

• Approximately 13.5 years unexpired lease term (5.5 years term certain)

• Tenant renewed their lease in 2018, demonstrating their commitment to the property

• Heritable Interest (Scottish Equivalent of English Freehold)

• £575,000, subject to contract

• 7.5% Net Initial Yield

The subjects are situated on the west side of Lothian Road within the section of the street bounded by Morrison Street to the north and Semple Street to the south in the heart of the Edinburgh’s Exchange District.

Lothian Road forms part of one of the main arterial routes into Edinburgh City Centre from the south benefitting from high vehicular and pedestrian footfall. The subjects lie approximately 0.8 km (0.5 miles) to the south of Edinburgh City Centre within a mixed commercial and residential locality. Occupiers in the vicinity include Tesco Express, Boots, Costa, Superdrug, Poundland, Greggs, Odeon Cinema, and Pret a Manger.

In addition, the property is adjacent to 2 Semple Street, a prime, new Grade-A office scheme. The development extends to approximately 40,000 sq ft to comprise of two retail units at ground floor and five upper floors of Grade A office accommodation. The completion of this development will significantly improve the area and undoubtedly increase footfall. Other nearby office occupiers include Blackrock, Standard Life, Lloyds Banking Group, Brewin Dolphin and PwC.

The subject property comprises a well-configured ground floor retail unit with ancillary accommodation over basement and first floor. The property forms part of a steel framed Art Deco building dating back to 1935. The unit has been fitted out by the tenant in their usual corporate style.

Heritable (Scottish equivalent of English freehold).

The ground floor is let on a renewed lease to A.F. Blakemore and Son Limited (t/a Philpotts) on a full repairing and insuring basis for a term of 15 years from 7th April 2018, expiring on 6th April 2033 (approximately 13.5 years unexpired lease term). There is a tenant’s break option on 7th April 2025, subject to six months’ prior written notice.

The current passing rent is £45,000 per annum which, based on our analysis, equates to £37.50 Zone A. There is an upwards only rent review on 7th April 2023 and 7th April 2028.

The tenant has been in occupation since 2008.

The property has been registered for VAT. It is anticipated that the sale will be treated as a Transfer of a Going Concern (TOGC).

We are instructed to seek offers in the region of £575,000 (Five Hundred and Seventy Five Thousand Pounds), subject to contract, reflecting a net initial yield of 7.5%, assuming purchasers’ costs of 4.8%.

Please note a purchaser will be re-charged the cost of the searches and surveys which are provided in the data room.

Please note a purchaser will be charged a Transaction Fee of 1% of the Sale Price + VAT.

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