The powerhouse of Scotland
Glasgow is regarded as the economic powerhouse of Scotland, generating £43 billion GVA in 2016. It is the UK's 3rd largest financial centre (Source: Invest Glasgow). More than 54,000 companies make their home in the Glasgow city region, supporting 844,000 jobs (Source: Invest Glasgow). Glasgow is home to a range of blue chip companies, major global organisations and international SMEs.
The city has an above average representation of employment within the financial services sector (Source: Promis). Companies represented in Glasgow include Santander, RBS, Clydesdale Bank and JP Morgan. Some of the biggest names in pharmaceuticals, research services, engineering and a range of global brands also call Glasgow home, including Glaxosmithkline and Lockheed Martin (Source:Invest Glasgow).
Employment in Glasgow is to increase as a consequence of the £1.13 billion Glasgow City Region City Deal, which aims to create thousands more new jobs, drive business innovation and growth and generate billions of pounds of private sector investment (Source: Glasgow City Region City Deal). Funding for this initiative started in 2015.
Glasgow's population is continuing to grow. Glasgow City had the highest population in 2017, out of all 32 council areas in Scotland. The greater Glasgow area accounts for more than 40% of Scotland's entire population. 70% of this population is of working age, highlighting Glasgow's relatively young population in comparison to the rest of the UK.
Glasgow is home to 5 Higher Education institutions, including the University of Glasgow (ranked 69th in the world), The University of Strathclyde (ranked 268th in the world) and Glasgow Caledonian University, as well as the Glasgow School of Art. Glasgow has the highest student population in the UK outside of London, with 87,290 students (Source: HESA).
The subject property comprises a retail unit
arranged over ground and basement floors,
from which the tenant trades from both. The
unit forms part of a larger traditional category
B listed building.
The upper floors are used as offices and are under separate ownership.
The property is held on a Heritable title (Scottish equivalent of English Freehold).
The property is let entirely to Diesel (London) Limited on a 25 year FRI lease, expiring 5th October 2022.
The passing rent is £376,500 per annum (£311.47 per sq ft Zone A).
At the 2017 rent review an allowance of 2.5% was made for the 15 year assumed term within the lease. On re-letting the allowance will not apply.
Further information can be found within the link below.
The property has been elected for VAT and therefore VAT will be payable on the purchase price. However, it is anticipated the sale will be treated as a Transfer of a Going Concern (TOGC).
The property is being offered for £8,340,000 (Eight
Million, Three Hundred and Forty Thousand
Pounds Sterling) exclusive of VAT for the benefit of
our client's interest.
A purchase at this level would reflect a net initial yield of 4.25%, after allowing for purchaser's costs of 6.18% based on Scotland's Land and Buildings Transactions Tax (LBTT).
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