200 Broomielaw

Glasgow G1 4RU

Overview

LANDMARK OFFICE BUILDING WITH RIVERSIDE FRONTAGE WITHIN GLASGOW'S CENTRAL BUSINESS DISTRICT
  • Glasgow is experiencing an acute shortage of available office supply coinciding with a high level of occupier requirements.
  • Significant level of recent occupational activity in the immediate area.
  • Quality office building providing 79,236 sq ft over ground to 8th floor and 31 car spaces at basement level.
  • Let to high quality tenants, Atkins Limited and Chubb Services UK Limited, with a WAULT of 2.09 years to expiry and a current passing rent of £1,762,824 per annum, with an average rental rate of £21.44 per sq ft.
  • Opportunity to add value through refurbishment to re-gear leases or re-let, capitalising on a strong occupational market to push rents on and increase length of secure income.
  • Offers are sought in excess of £16,500,000 (Sixteen million five hundred thousand pounds) exclusive of VAT for our client's heritable interest, reflecting a Net Initial Yield of 10.01% and a low capital rate of £208 per sq ft, assuming purchaser's costs based on LBTT.

Location

GLASGOW IS THE LARGEST CITY IN SCOTLAND AND THE FOURTH LARGEST IN THE UK WITH A POPULATION OF OVER 608,000 AND PROJECTED TO GROW.

The Greater Glasgow conurbation (2011 census) had a population of 2.3 million accounting for more than 40% of the country's entire population.

From a traditionally industrial employment base, the city has successfully promoted itself to become an established office location attracting inward investment on a national and international basis. Glasgow is now Scotland's largest centre of employment with 84% of employment being in the service sector, including financial, public administration and business services.

Glasgow has a highly educated workforce with 46.3% of the working age population educated to degree level or higher, compared to a UK average of 38.6%. There are over 130,000 students in the city attending the five higher education institutions and the three super colleges, providing a skilled local labour pool and making Glasgow an attractive destination for business.

Glasgow Caledonian University is a Chartered Institute for Securities & Investment Centre of Excellence, the first specialising in financial services operations and risk, joining an exclusive group of just three universities outside London. Both the University of Strathclyde and the University of Glasgow Business schools are triple accredited. Only 1% of business schools worldwide hold this distinction.

Glasgow contributes approximately £20 billion in Gross Value Add to the Scottish economy annually, and is in the top 15 European Financial Centres according to The Global Financial Services Index September 2018, being one of only three UK cities on the main index of 96 cities worldwide and ranked 50th, just behind Edinburgh (ranked 43rd) and London (ranked 1st). Glasgow is recognised as one of Europe's top cities for attracting Foreign Direct Investment (FDI), and was ranked 6th in the UK in the EY Scotland Attractiveness Survey 2018.

ALMOST 17,000 COMPANIES MAKE THEIR HOME IN GLASGOW INCLUDING AN IMPRESSIVE LIST OF MAJOR GLOBAL ORGANISATIONS SUCH AS MORGAN STANLEY, BARCLAYS WEALTH, JP MORGAN, SKYSCANNER AND PWC.

Glasgow is the top retailing location in the UK outside of London's West End, and is considered a Major City by PMA based on the volume and quality of retail provision. The city has established itself as one of the principal fashion retailing cities in the UK, resulting in a number of national and international retailers choosing Glasgow for their first store outside of London.

Glasgow is a premier location for conferences and events, with the largest conference and convention centre in Scotland, the Scottish Event Campus, located to the immediate west of the city centre. This includes the SSE Hydro which opened in 2013 and has a seated capacity of 12,000. Last year visitor numbers to The SSE Hydro were over 1,040,000 which saw the venue listed at number 4 in the Pollstar ranking of Global Arenas for the year to December 2018. The Scottish Event Company has applied for planning permission in principle for a £150-£200 million expansion of its facilities with a vision to attract the world's top conferences, exhibitions and events.

Glasgow was the sixth most visited UK city in 2017 by international tourists and ranks ahead of Oxford, Bristol, Brighton, Cambridge and York.

COMMUNICATIONS

ROAD
The M8 is the main motorway in Scotland and connects Glasgow and Edinburgh. The M8, M74, and M73 form a motorway ring road around Glasgow providing excellent access to the central Scotland motorway network. The M74 is the main motorway route to England and the M6, whilst the M8 via the M80 provides access to Stirling and the north of Scotland.

Glasgow city centre has an excellent local bus network serving the city and the local area. In particular, the Fastlink service runs along Broomielaw, linking the city centre to the Digital Media Quarter to the west and on to the Queen Elizabeth University Hospital.

RAIL
Glasgow has the UK's largest suburban rail network outside London and has two main stations in the city centre, Central Station and Queen Street Station. Rail links to London are provided via Central Station and the West Coast Main Line, at a journey time of around 4 hours 30 minutes. Queen Street Station provides the main rail link between Glasgow and Edinburgh, with a journey time of 50 minutes. The Edinburgh Glasgow Improvement Programme (EGIP) is underway, which will reduce the journey time between Glasgow and Edinburgh from 50 minutes to 42 minutes.

Glasgow city centre is also served by an underground and low level rail system which links the city centre to suburban residential areas.

AIR
Glasgow is close to three international airports: Glasgow Airport is 15 minutes' drive from the city centre, Glasgow Prestwick, 45 minutes and Edinburgh, 1 hour.

Glasgow Airport services over 200 flights daily, with 30 airlines travelling to 120 destinations. There are over 70 per day to and from London. Over 9 million passengers pass through Glasgow Airport annually. More than £200 million has been invested in the airport in the last decade which has resulted in securing new routes and increasing passenger numbers.

Situation

200 Broomielaw has an excellent location in the International Financial Services District (IFSD) within Glasgow's Central Business District. The immediate vicinity around 200 Broomielaw is experiencing significant occupational activity with several large letting deals being agreed in recent months.

The IFSD covers the area from Bothwell Street south to the River Clyde, incorporating the Broomielaw. The area has seen significant development in the years since 2001 as part of a public and private partnership project run by Scottish Enterprise in an effort to improve the area and provide an attractive inward investment location. Through this partnership, the IFSD has created a highly attractive environment for indigenous and overseas firms in finance and related sectors.

AS A PRE-EQUIPPED BUSINESS AREA, IT IS DESIGNED AROUND THE NEEDS OF FINANCIAL FIRMS SEEKING A NEW UK LOCATION FOR THEIR OPERATIONS.

Since the launch of IFSD in 2001, over 15,000 net new jobs have moved to the district through new investment, expansion or diversified development.

COMPANIES SUCH AS ESURE, JP MORGAN AND MORGAN STANLEY HAVE MOVED INTO THE IFSD, AND EXISTING EMPLOYERS SUCH AS BARCLAYS AND BNP PARIBAS HAVE EXPANDED THEIR OPERATIONS SUBSTANTIALLY.

200 Broomielaw has a prominent position on Broomielaw, overlooking the River Clyde and located between Carrick Street and Brown Street. Access to the M8 motorway is 2 minutes to the west, with Central Station a 5 minute walk away and Queen Street around 15 minutes. The main shopping areas of Buchanan Street, Argyle Street and the St Enoch centre are just a 10 minute walk away, and there are numerous cafés, restaurants and bars in the surrounding area.

The Broomielaw district is one of nine in Glasgow city centre identified through the council's city centre strategy, with each of these districts to have its own strategy, and District Regeneration Frameworks (DRFs) that would see it taking a distinct role in making a more sustainable mixed use city centre. The Broomielaw District Regeneration Framework (BDRF) is the second for the city centre, and has been developed collaboratively by a multidisciplinary team led by Austin Smith Lord and MVRDV working with the local community, businesses, developers, investors and other stakeholders. The final action plan for the DRF will reflect actions that are deliverable in funding, resource and outcome terms.

Description

Completed in 2004, 200 Broomielaw was developed by Walker Group and designed by architects Keppie Design.

THE PROPERTY COMPRISES AN IMPRESSIVE MODERN OFFICE BUILDING PROVIDING A TOTAL OF 79,236 SQ FT OF HIGH QUALITY OFFICE SPACE ARRANGED OVER 9 FLOORS, PLUS 31 SECURE BASEMENT CAR PARKING SPACES.

The space has good levels of natural light with full length glazing to the front elevation. The large floorplates allow for flexibility, with a tower room on each floor providing a feature meeting room. The seventh floor has an open south facing terrace overlooking the River Clyde.

200 Broomielaw benefits from the following high quality specification:

Seven storey atrium at main entrance level
150mm raised access floors with loading of 4kN/m2
Suspended acoustic ceilings
Recessed LG3 lighting
Four pipe fan coil cooling system with dedicated plant rooms at each floor
Male, female and disabled toilet facilities on each floor
Three 10 person passenger lifts
Independent standby generator
31 secure basement car parking spaces providing a ratio of 1:2,556 sq ft

ACCOMMODATION

Malcolm Hollis has carried out a full measurement survey of the property which is available upon request.

A schedule of accommodation can be found within the link below.


Tenure

Heritable interest (Scottish equivalent of English freehold).

Tenancy

200 Broomielaw is fully occupied by Atkins Limited and Chubb Services UK Limited, guaranteed by Chubb European Group Limited, with separate FRI leases over each floor. The total passing rent is £1,762,824 per annum, with a weighted average unexpired lease term of around 2.09 years to expiry. Full tenancy details can be found in the link below.


Covenant Information

ATKINS LIMITED
Atkins Limited, owned by the Montreal based SNC-Lavalin Group, provides design, engineering and project management consultancies with a total of 9,246 employees across the UK and Europe. Atkins works across a wide spectrum of sectors including aerospace, defence and infrastructure for both public and private clients. Atkins Limited has a Dun & Bradstreet rating of 5A1 with a turnover for the last full financial year (March 2017) of £808,700,000 and net profits of £70,700,000. Their latest financial statement shows a 9 month profit of £60,700,000.

CHUBB SERVICES UK LIMITED
Chubb Services UK Limited, formerly ACE INA Services UK Limited, is a major international insurance agent, broker and insurance provider. Chubb Services UK Limited has a Dun & Bradstreet rating of N2. The leases are all guaranteed by Chubb European Group Limited, which has a Dun & Bradstreet rating of 5A1 and a turnover of £1,834,651,000 for the year ended 31st December 2017, with a net profit of £206,809,000.

GLASGOW OFFICE OCCUPATIONAL MARKET

Further information can be found within the marketing particulars.

GLASGOW OFFICE INVESTMENT MARKET

Further information can be found within the marketing particulars.

GLASGOW OFFICE DEVELOPMENT PIPELINE

Further information can be found within the marketing particulars.


VAT

The property has been elected for VAT purposes and it is anticipated that the investment will be treated as TOGC.

EPC

Copies of the EPCs are available upon request.

DATA ROOM

Further information is available in the data room. Access details are available upon request.

FUTURE REFURBISHMENT POTENTIAL

Cooper Cromar has recently considered the future refurbishment potential of 200 Broomielaw. A copy of their feasibility study is available upon request.

Proposal

Offers are sought in excess of £16,500,000 (Sixteen million five hundred thousand pounds) exclusive of VAT for our client's heritable interest, reflecting a Net Initial Yield of 10.01% and a low capital rate of £208 per sq ft, assuming purchaser's costs based on LBTT.

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NET INITIAL YIELD:
10.01%
PRICE:
£16,500,000
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