IBROX BUSINESS PARK PRIME MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY
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IBROX PRIME MULTI-LET INDUSTRIAL
INVESTMENT OPPORTUNITY
BUSINESS
PARK
BROOMLOAN PLACE
GOVAN
GLASGOW
G51 2JR
PRIME WELL POSITIONED
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
MULTI-LET INDUSTRIAL ASSET
WITHIN A KEY UK CITY.
INVESTMENT SUMMARY
01. 02. 03.
Modern estate Total of 78,674 sq. ft Good quality tenant line-
strategically located in spread over 6 terraces up including Edmundson
close proximity and providing 22 units Electrical Ltd, General All
to major transport links ranging in size from 1,000 Purpose Plastics Ltd and
and a short drive to sq. ft up to 5,350 sq. ft. WGM Engineering.
Glasgow City Centre.
04. 05. 06.
Average unexpired Total passing income of Strong market dynamic
income to expiries of £562,379 per annum with of very limited supply,
approx. 4.6 years and an Estimated Rental Value recent rental growth
approx. 2.7 years to of £606,417 per annum. and significant occupier
break options. activity.
07. 08. 09.
Sensible passing rents Offers in excess A purchase at this level
with the average current of £9.17m exc VAT equates to a capital
rental rate of £7.15 psf. reflecting an attractive value rate of £116 psf.
NIY 5.75% after allowing
purchaser’s costs based
on LBTT. At ERV, this
provides a reversionary
yield of 6.20%.
2
A80
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
A803
A82 Stepps
GLASGOW IS SCOTLAND’S
M80 A80
A739
J13/1
M8 M73
J26 Coatbridge
A814
GLASGOW
M8
LARGEST CITY AND THE
A8 Airdrie
A89
J25 J8/2 A8
J24 J23 A725
J22 A89
1A Chapelhall
A74
M8
J1 2 A752 J7A
M77 2A J7 J6
THIRD LARGEST URBAN
3 3A J4 Birkenshaw
A730 J6A
A77
J2
TO EDINBURGH >>
Uddingston A775
Cambuslang M74
A725 Bellshill
CENTRE IN THE UK.
Thorniebank
J3 A749 A724 A721
J5
Carmunnock
M77 Motherwell
A723
A725
Newton J6
Mearns A726 Hamilton
East
Kilbride
TO SOUTH
AND CARLISLE J7
>>
LOCATION
With a population of 622,000 people and an extended catchment
population of 2.3 million people, the city has the largest economy in
Scotland and contributes substantially to the UK economy. Glasgow
generated £42.9 billion GVA in 2018. The city is Scotland’s first to secure
the UK Government’s City Deal, worth £1.3 billion. Glasgow’s modern and Queen
diverse economy is home to over 48,000 businesses (28% of Scottish Elizabeth
University GOVAN RIVER
CLYDE
companies) supporting around 856,000 jobs (34% of Scottish total). Hospital
The city is home to an impressive number of blue chip companies and
major global occupiers. The city’s maturing status as a preferred location Elder Park
Recreation
for FTSE 100 and AIM (Alternative Investment Market) listed companies Cardonald Ground
endorses Glasgow as a world class business location.
Park
IBROX
The main motorway in Scotland, the M8, runs through the heart of Glasgow,
One Stop
linking with Edinburgh to the east and Glasgow International Airport to the Roofing
west. The M8 provides access to the surrounding motorway network, to Ibrox Tyre
25 Ibrox Centre
the north via the M80, to the south via the recently extended M74/M6 to Jarvie
Stadium
Plant
England and to the west via the M77. Rangers FC
Glasgow
SITUATION
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
Ibrox Business Park is situated in a prime location Ibrox Stadium, home to Rangers Football Club, sits to
within the Govan area of Glasgow and is a short the immediate south of the property.
drive from Glasgow City Centre and close to Junction
The estate sits on the east side of Broomloan Road
23/24 of the M8 Motorway. The surrounding area is a
which at its southern end intersects with Edmiston
popular / busy mixed use area. Surrounding occupiers
Drive and south to Junction 23 of the M8 Motorway.
include Pipe Center, NHS, Wolseley, National Grid,
Edmiston Drive also links into Helen Street which
Mercedes-Benz Vans & Trucks and Dean & Wood.
provides access to Junction 24 of the M8 Motorway.
GLASGOW
CITY CENTRE
KINGSTON M74
BRIDGE
SSE HYDRO STV
BBC SCOTLAND
GLASGOW PAISLEY ROAD WEST
SCIENCE CENTRE PACIFIC QUAY
M77
M8
EDMISTON
DRIVE (A8)
IBROX STADIUM
J23 M8
MERCEDES-BENZ BROOMLOAN ROAD BROOMLOAN ROAD
NHS
4
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
TOTAL OF 78,674 SQ. FT
SPREAD OVER 6 TERRACES
AND PROVIDING 22 UNITS
RANGING IN SIZE FROM 1,000
SQ. FT UP TO 5,350 SQ. FT.
DESCRIPTION
The estate comprises six terraces of modern industrial units
constructed in two phases. The first phase was constructed
around 2000 and includes Roseberry, Norwood, Invergyle
and Davieland Court. The second phase was built around
2004 and includes Wellfield and Clifford Court.
The industrial buildings are constructed with a concrete slab
and are of steel portal frame construction and clad externally
with a combination of cavity facing brick/block external
masonry walls and profile metal cladding panels. Roofs are
shallow pitched and also comprise of profile metal cladding
panels. Each unit has an external pedestrian entrance door as
well as an electrically operated roller sectional loading door to
the main warehouse area. The units have an eaves height of
approximately 6 metres.
Internally, each unit provides warehouse space with dedicated
office reception area and toilet facilities. The general
specification includes a three phase electrical supply, heating
to the warehouse areas via roof mounted warm air blowers
and lighting via a combination of hi-bay sodium lamps and
fluorescent surface mounted lighting. The units have been
fitted out to varying degrees dependant on the individual
tenant requirements for their operational use.
Externally, the units are grouped around a central
courtyard, each with its own loading area and car parking.
The estate benefits from CCTV and a security gate at the
main entrance.
5
TENURE
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
Heritable Interest (Scottish equivalent of
English Freehold).
TENANCY &
ACCOMMODATION
The total current income is £562,379 per
annum with an Estimated Rental Value of
£606,417 per annum. Leases are generally
drawn on an FRI basis.
The current income profile of the estate
provides an average unexpired income of
approximately 4.6 years to expiries and 2.7
years to break options. The estate is home
to a very diverse range of businesses with
uses including storage and distribution, trade
counter, media, construction and various
service related occupiers.
TENANT COVENANT
Creditsafe reports for all of the tenants where
available are held within the data room.
6
TENANCY SCHEDULE
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
Area Rent (pa) ERV pa
Unit Tenant Start Date Expiry Date Next RR Breaks Comments
(sq ft) (rate psf) (psf)
Ibrox BP -
Main Estate
Unit 1 Prestige Cars Specialists 29/01/25, 29/01/2026 £37,820 £37,820 Tenant entitled to 6 month rent free period commencing on first or second break
4,880 29/01/2021 28/01/2036
Roseberry Court (Scotland) Limited 29/01/30 29/01/2031 (£7.75) (£7.75) date if break not exercised. Schedule of Condition.
Unit 2 £35,000 £40,000
Procam Take 2 Ltd 4,820 14/07/2014 13/07/2029 14/07/2024 2024 rent review fixed to £40,000 pa. Schedule of Condition.
Roseberry Court (£7.26) (£8.30)
Unit 3 £45,500 £45,500 Mezz of circa 3,000 within unit. Tenant paying £3.50 psf on the mezz area which
Edmundson Electrical Limited 4,865 01/11/1999 31/10/2029 31/10/2024 01/11/2026
Roseberry Court (£9.35) (£9.35) is included in overall rent.
Unit 1 £32,250 £32,250
Reid Brothers International Limited 4,300 25/09/2020 24/09/2030 25/09/2025 24/09/2025 3 month rent penalty if tenant break exercised. Schedule of Condition.
Norwood Court (£7.50) (£7.50)
Unit 2 £32,250 £32,250
Reid Brothers International Limited 4,300 25/09/2020 24/09/2030 25/09/2025 24/09/2025 3 month rent penalty if tenant break exercised. Schedule of Condition.
Norwood Court (£7.50) (£7.50)
Unit 1 £25,690 £29,360 Guarantee by K.I.G. Limited for performance of lease obligations. Schedule of
The Roof Anchor Company Limited 3,670 19/02/2019 18/02/2029 19/02/2024 19/02/2024
Invergyle Court (£7.00) (£8.00) Condition.
Unit 2 £28,960 £28,960
No Drama Ltd 3,620 15/04/2021 14/04/2026 15/04/2024
Invergyle Court (£8.00) (£8.00)
Unit 3 £22,625 £28,960
Grayson (GB) Limited 3,620 05/10/2016 04/10/2022 Schedule of Condition.
Invergyle Court (£6.25) (£8.00)
Unit 4 £23,318 £28,960
General All Purpose Plastics Limited 3,620 28/05/2012 27/05/2022 Schedule of Condition.
Invergyle Court (£6.44) (£8.00)
2,170 £16,275 (£7.50) £17,360 (£8.00) Unit contains mezzanine floor of 1,800 sq. ft which is rentalised at £6,020 pa,
Unit 1
Quipu TV Limited Mezz 15/01/2018 14/01/2023 15/01/2023 Mezz Mezz equating to a total rent of £22,295 pa. Deposit of 3 months rent in place. Tenant
Davieland Court
1,800 £6,020 (£3.34) £6,020 (£3.34) has option to extend for three years to 2026, then to 2029. Schedule of Condition.
Unit 2 £17,192 £17,192
Quipu TV Limited 2,149 05/01/2021 14/01/2023 Schedule of Condition.
Davieland Court (£8.00) (£8.00)
Unit 3 £17,360 £17,360
Xiaopang Express Limited 2,170 17/05/2021 16/05/2026 16/05/2024 Deposit of 3 months rent in place.
Davieland Court (£8.00) (£8.00)
Unit 4 £20,800 £25,600
Hydraulink Limited 3,200 08/03/2013 30/03/2023
Davieland Court (£6.50) (£8.00)
Unit 5 £24,106 £26,600 Unit extensively fitted out to provide office accommodation. No reinstatement
Action for Children 3,325 31/10/2014 30/10/2022
Davieland Court (£7.25) (£8.00) required by the tenant.
Unit 6 £2,000 £3,000
John Thomson t/a HCS Tidybuild 1,000 01/12/2013 30/11/2021 Tacit relocation. Open fronted storage unit.
Davieland Court (£2.00) (£3.00)
Unit 1 £22,688 £27,225
High Voltage Instruments Limited 3,630 16/04/2007 15/04/2022
Wellfield Court (£6.25) (£7.50)
Unit 2 £28,207 £29,175 Rent of £55,440 pa from 02/02/2021 until 01/02/2022, then reverts to £67,000
Paper Shredding Services Limited 3,890 02/10/2011 01/02/2026
Wellfield Court (£7.25) (£7.50) pa from 02/02/2022. Vendor will top up rent to £67k pa from a Date of Sale.
Unit 3 £38,793 £40,125
Paper Shredding Services Limited 5,350 02/10/2011 01/02/2026 Penalty of £13,830 if break exercised.
Wellfield Court (£7.25) (£7.50)
Total 66,379
Clifford Court
£23,775 £23,775
Unit 1 Clifford Court Little’s Vehicle Hire Ltd 3,170 01/06/2021 31/05/2026 01/06/2024 Deposit of 3 months rent in place.
(£7.50) (£7.50)
£27,300 £31,500
Unit 2 Clifford Court WGM (Engineering) Ltd 4,200 14/07/2014 31/07/2024 31/07/2022 Schedule of Condition.
(£6.50) (£7.50)
£15,112 £15,112
Unit 3 Clifford Court Calcam Skye Ltd 1,950 12/05/2021 11/05/2026 Deposit of 3 months rent in place.
(£7.75) (£7.75)
13/03/2023,
£19,338 £22,313 Tenant breaks at 3rd, 5th and 7th anniversary. 3 month rent penalty if break
Unit 4 Clifford Court 88 Events Company Limited 2,975 13/03/2020 12/03/2030 12/03/2025 13/03/2025,
(£6.50) (£7.50) activated.
13/03/2027
Total 12,295
GRAND TOTAL 78,674 £562,379 £606,417
7
SERVICE CHARGE
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
A service charge is in place to maintain and
manage all common areas of the estate. This
has two component parts, a service charge for
the main estate and a separate service charge
for Clifford Court and surrounding courtyard.
MAIN ESTATE
For the year ending August 2022, the total
service charge budget is running at £55,700
per annum (£0.80 psf). Fairfield House was
previously sold and held by an owner occupier,
the Orb Group, who contribute 7.45% to the
Service Charge.
CLIFFORD COURT KEY
Clifford Court shares a courtyard with three
other buildings, namely Beech House, Roseberry Court
Albion Court and Larchfield Court which are
in separate ownerships. Each ownership Norwood Court
contributes to the overall upkeep of the
estate courtyard on a fair and equitable basis. Invergyle Court 3
Clifford Court’s share is 35.83%. 1
4
For the year ending May 2022, the total Davieland Court
2
Houech
se
service charge budget is running at £18,300 3 2
Be
per annum across two Schedules, one for the Wellfield Court
whole court yard and the second solely for 1
2 3
Clifford Court. The total cost attributable to Clifford Court
Clifford Court is £7,519 per annum (£0.61 psf).
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1 3 4
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Alb
EPC
2
1
1 Larc
A copy of EPC’s are held within the data room. 2 3 hfield
2 4 5 1 Cou
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6
8
INDUSTRIAL INVESTMENT MARKET
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
INDUSTRIAL OCCUPATIONAL MARKET
The industrial occupational market in Glasgow and wider conurbation has performed well The industrial investment market continues to be underpinned by
within the past few years, despite the wider socio-economic impact facing the UK economy. the strong performance of the occupational market. This has been
driven by the continuing supply versus demand imbalance and the
Changing consumer trends and the rise in e-commerce coupled with record low availability
relentless growth of online retail, a factor that has been magnified
rates has contributed to increased demand for good quality industrial space. This low
through the recent Covid-19 situation.
supply and high demand dynamic has led to rising rents and reduced incentive packages.
Rents within nearby estates such as Kingston Bridge Trading Estate have reached between Pricing has remained robust with prime product trading at strong
£9 psf to £10 psf. levels. There continues to be a significant weight of money aligned
to the sector, particularly those assets that benefit from strong
Industrial estates located close to the city centre have experienced increased demand,
fundamentals in established industrial locations.
with occupiers looking to be located close to target demographics. Indeed, many
occupiers with live requirements cannot find premises of a suitable quality in order to Within the Scottish market, there have been limited prime offerings
satisfy their requirements. and the market has been starved of product with the majority of
transactions occurring south of the border. A selection of recent
Pipeline remains limited due to the more active developers struggling to find readily
transactions are below.
developable land in and around Glasgow. Despite some areas of derelict land remaining,
the cost of remediating and delivering such sites remains prohibitive to the private sector.
Build cost inflation and protracted lead in times for sourcing materials are also key issues
for developers in bringing forward new product and these are likely to restrict the further
supply of new units.
INVESTMENT TRANSACTION SCHEDULE
Size Sale Price
Date Property NIY Seller Purchaser Comments
(sq ft) (CV rate psf)
Stenhouse Mill Wynd
£8.46m Multi-let estate of two terraces, home to tenants including Travis Perkins, Rexel
Mar-21 Industrial Estate, 63,182 5.47% Telereal Trillium Kennedy Wilson
(£134) and Chubb. Short to medium term income profile.
Edinburgh
Clyde Gateway Trade £2.35m JR Capital & Modern 4 unit terrace. Tenants include Allied Vehicles and Evolution
Feb-21 27,409 c.6.6% Private seller
Park, Rutherglen (£86) Chancerygate Fasteners. WAULT of 8.4 yrs to expiry and 5.2 yrs to breaks.
Glasgow Airport Business
£5.3m Modern three unit terrace located within the airport apron. WAULT of 4.9 yrs to
Feb-21 Park, Marchburn Drive, 55,600 6.32% Squarestone Warehouse REIT
(£95) expiry and 3.5 yrs to breaks. Tenants include Fedex and Kuehne & Nagel.
Glasgow Airport
£24.5m
Dec-20 M8 Interlink, Coatbridge 290,104 5.67% ASI Northwood Modern multi-let estate spread across 20 units and sitting on a site of c. 28 acres.
(£84)
Belleknowes Industrial £10.5M
Dec-20 138,043 5.35% ASI Caisson AM Multi-let estate of 22 units across 4 terraces, 1 stand alone unit. Four vacant units.
Estate, Inverkeithing, Fife (£76)
R6 Industrial Estate,
£3.9M Refurbished, multi-let estate, 2 terraces, 6 units in total. WAULT 6.5 yrs to
Dec-20 Queen Anne Drive, 32,009 6.40% R6 Ventures Limited Stenprop
(£122) expiries and 4.79 to breaks.
Newbridge
Units 1-4 Bankhead
£3M Westerwood New build units, prime location. Tenants include Rembrand Timber Ltd, Young
Nov-20 Crossway North, 18,204 5.32% Private seller
(£163) Properties Malt Co Ltd and Ashley Ann Ltd. WAULT 8.5 yrs to expiries. 7.8 yrs to breaks.
Edinburgh
Prestonfield Park, £14.45M Modern prime multi-let industrial estate. Strong tenant line-up. WAULT of circa
Oct-20 99,835 4.96% Aviva Ribston
Edinburgh (£146) 4.3 yrs to expiry (3.8 to breaks).
9
INVESTMENT RATIONALE
IBROX BUSINESS PARK | BROOMLOAN PLACE | GOVAN | GLASGOW | G51 2JR
• Opportunity to acquire a prime multi-let well established industrial
estate in one of the UK’s key cities and Scotland’s largest economy.
• Ibrox Business Park is located only 3 miles from Glasgow City Centre
with close proximity to J23 and J24 of the M8 motorway.
• Strong market dynamic of very limited supply, significant occupier
demand and recent rental growth.
• Excellent spread of unit sizes appealing to a diverse range of both
local and national occupiers.
• Modest passing rents within the estate with an average current rate
of £7.15 psf and therefore scope to increase rental levels.
• Asset management opportunities including exploring lease re-gears,
break removal opportunities and work through future rent reviews to
increase net income.
DATA ROOM
Further information can be found within the sale data room
with access being available upon request.
VAT
The property is elected for VAT. VAT will be payable on the
purchase price, however it is anticipated that a sale will be
enacted by way of a Transfer of a Going Concern (TOGC).
ANTI-MONEY LAUNDERING REGULATIONS
To comply with Anti Money Laundering Regulations we are
legally required to undertake due diligence on prospective
purchasers/tenants which will at a minimum include proof of
identity/address and funding. Applicable documentation will
therefore be required on agreement of Heads of Terms.
10INVESTMENT PROPOSAL
We are instructed to seek offers in excess of £9.17m
exclusive of VAT for the Heritable Interest which reflects a
net initial yield of 5.75% after purchaser’s costs based on
LBTT. At ERV, this provides a reversionary yield of 6.20%.
A purchase at this level equates to an attractive capital
value rate of £116 psf.
CONTACT
For further information or viewing,
please contact the joint selling agents:
Derek Archer
Archer Property Consultants Limited
M: 07798 608350
E: derek@archerproperty.co.uk
Ian Dougherty
Ryden LLP
M: 07831 175710
E: ian.dougherty@ryden.co.uk
The Agents for themselves and for the 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 the 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 representations or warranty whatever in relation to this property. September 2021.
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