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

• Prime position in the heart of the City Centre

• Highly Secure Income - Let to British Heart Foundation

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

• Heritable Interest (Scottish Equivalent of English Freehold)

• £520,000, subject to contract

• 7.72% 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 at basement level.  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 property is let on a renewed lease to British Heart Foundation on a full repairing and insuring basis for a term of 10 years from 28th November 2018, expiring on 27th November 2028 (approximately 8.5 years unexpired lease term).

There is a tenant’s break option on 28th November 2025, subject to six months’ prior written notice. The break option was originally dated 27th November 2023 but in accordance with a Minute of Variation the tenant agreed to move the break date to November 2025, in return for a six month rent free period from 28th May 2020 to 27th November 2020. The vendor will ‘top-up’ the income by an appropriate adjustment on the completion sum in order that a purchaser does not suffer an income shortfall.

The current passing rent is £42,000 per annum which, based on our analysis, equates to £34.50 Zone A. There is an upwards only rent review on 28th November 2023.

British Heart Foundation initially took an Assignation of the lease from Scotmid Co-Op in May 2016 and exercised an option to extend the lease in 2018 following strong trade.

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 £520,000 (Five Hundred and Twenty Thousand Pounds), subject to contract, reflecting a net initial yield of 7.72%, assuming purchasers’ costs of 4.59%.

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.

1. The property is located in the UK’s most prosperous city outside London;

2. The property occupies a prime prominent position in the heart of the city centre;

3. Highly secure income – let to British Heart Foundation;

4. Attractive unexpired lease term;

5. The tenant extended their lease in 2018, demonstrating their commitment to the property

6. A purchase at the asking price reflects an attractive net initial yield;

7. Attractive lot size for an investor.