Greenock is located due west of Glasgow and Edinburgh at the western end of the A8/M8 motorway. It is the largest town forming the Inverclyde conurbation (comprising Gourock, Greenock and Port Glasgow) and continues to develop as an important commuter centre for Glasgow.
Greenock sits approximately 24 miles west of Glasgow city centre (via the M8/A8), 46 miles north of Ayr (via the A78) and 70 miles west of Edinburgh (also via the M8). The M8 is the primary route connecting Greenock with Glasgow (and Edinburgh further east) and also links with all other major road networks, thereby providing excellent access across Scotland.
The town is well served by rail communications, with both Greenock Central and Cartsdyke stations providing regular direct services to Glasgow in 30 and 40 minutes respectively. Glasgow Airport is nearby off the M8, 15 miles away by road.
Britannia House comprises a detached office pavilion arranged over ground, first and second floors. Constructed in 1991, the property is of steel portal frame construction, with full height panel glazing and pitched roof.
The property is used as a mortgage processing centre by RBS, where up to 1,000 employees work from site on a daily basis.
The property provides high quality office accommodation and includes the following specification:
Absolute Ownership (Scottish equivalent of English freehold).
The property is wholly let to The Royal Bank of Scotland Plc until 17 December 2037, therefore providing in excess of 19 years unexpired.
The rent is reviewed on an annual basis on 25 December each year, linked to the UK's Retail Price Index (RPI) in the preceding October, subject to a cap of 3%.
The current passing rent of £1,041,429.12 pa reflects a low passing rent of £15.40 psf overall.
The Royal Bank of Scotland Plc is a principal subsidiary of The Royal Bank of Scotland Group Plc. In February 2018, the Group reported significant results with an annual profit of £752m for 2017. Its financial strength is a reflection of the UK Government's majority ownership and control of the business, which stands at 62% (June 2018).
As part of restructuring by the bank to separate domestic retail banking from investment banking sectors, in line with the UK ringfencing requirements required to be in place by January 2019, The Royal Bank of Scotland Plc will sit inside of the ring-fencing requirements. It will hence benefit from greater protection afforded under these measures, with separation of the retail banking sector from investment and international banking activities.
The Royal Bank of Scotland Plc is rated as investment grade as follows:
Standard & Poors: Long Term Debt - A-, Outlook - Positive
Fitch: - Long Term Debt - A-, Outlook - Positive
For further information on the above, including latest reports by Standard & Poors and Fitch to support the investment grade covenant rating, please review https://investors.rbs.com/fixed-income-investors/creditratings.aspx.
The company has a Dun & Bradstreet rating of 5A 1 (June 2018), representing a minimum risk of business failure.
We understand that the property has not been elected for VAT.
Offers sought in excess of £15,680,000 (Fifteen Million, Six Hundred and Eighty Thousand Pounds) for our client's interest, subject to contract and exclusive of VAT.
A purchase at this level would reflect an attractive net initial yield of 6.25%, assuming purchaser's costs of 6.24%, and a low capital value of £232 per sq ft.
Based on Oxford Economics' 5 year RPI forecast (page 7), at the quoting price this would provide the following running yield profile: