BUSINESS PARK J3 M80

HIGH QUALITY OFFICE INVESTMENT OPPORTUNITY

7 BUCHANAN GATE

77 BUCHANAN GATE

EXECUTIVE SUMMARY• Multi – let high quality office building totalling approximately 1,871 sq m (20,139 sq ft).

• Rental Income £272,323 per annum (including top up).

• Heritable interest.

• Let to BDW Trading Ltd (group company for Barratt Homes and David Wilson Homes), ThyssenKrupp Elevator UK and Ticon Insulation Limited with an average unexpired term of 4.37 years.

• Excellent location in a successful business park with a strong tenant mix and first class transport links.

• Offers sought in excess of £2.45m reflecting a net initial yield of 10.5% with a reversion to 11.93% net of costs at 5.8% (£122 per sq ft capital value).

DESCRIPTIONThe property is arranged over ground and two upper floors. It was constructed in 2006 and benefits from a high specification and 70 car parking spaces (1 space: 288 sq ft).

The building is accessed via a large modern glazed reception area with an 8 person passenger lift servicing the upper floors. Each floor benefits from male, female and disabled toilets together with shower facilities.

The floor plates are open plan and benefit from carpet covered raised access floors, air conditioning, suspended acoustic tiled ceilings, and LG7 compliant recessed lighting system.

The property is fully occupied.

LOCATION MINS MILESGlasgow 10 9

Edinburgh 50 45

Stirling 25 21

Perth 60 59

Approximate drive time from Buchanan Gate.

HIGHLY ACCESSIBLEBuchanan Gate Business Park is situated adjacent to Junction 3 of the M80 motorway. The location benefits from excellent communication links and is within 10 minutes drive of Glasgow City Centre. Stepps railway station is a short walk away and provides regular connections to Glasgow Queen Street Station. The M8, M73, & M74 motorways are within a few minutes drive of the Park.

EXCELLENT AMENITIESA Brewers Fayre family pub/restaurant with children’s play area and an 80-bed Premier Inn are located within the Park and a Bannatyne’s Health Club is located nearby. Westerwood Golf & Leisure Centre is located a short distance from the Park off the A80 at Cumbernauld.

BUSINESS PARK J3 M80 BUSINESS PARK J3 M80

BuchananGate7

TENANT INFORMATIONBDW Trading Ltd (5A1) trading as Barratt Homes, have a turnover of £2.42bn anda net worth of £1.4bn. Further information at: www.barrattdevelopments.co.uk

Ticon Insulation Ltd (2A2) with a turnover of £11.66m and a net worth of £3.48m have expanded on the estate since their arrival. Ticon are owned by Wilhelmsen Maritime Services AS, who are the second largest shipping and marine company in the world. Further information at: www.ti-insulationgroup.com

ThyseenKrupp Elevator UK (2A1) with a turnover or £56.7m and a net worth of £5.8m are the UK arm of the German parent company one of the world’s largest elevator companies. The group had sales of € 6.2 billion in their last financial year. Further information at: www.thyssenkruppelevator.co.uk

68,000 sq ft ofClass 1 supermarketconsent granted

TENANCY SCHEDULE

Floor/Suite Tenant Floor Area Lease Lease Review Rent Rate Comments (sq ft) Start Expiry (Break) (per annum) (per sq ft)

Ground Floor Ticon Insulation 4,279 03.09.10 02.09.20 03.09.15 £59,780 £13.97- Right Limited

Ground Floor ThyssenKrupp 2,421 04.02.09 03.02.19 n/a £37,836 £15.63 - Left Elevator UK Limited

1st Floor BDW Trading 6,707 06.07.07 05.07.22 (06.07.17) £87,191 £13.00 Limited (Barratt Homes)

2nd Floor BDW Trading 6,732 06.07.07 05.07.22 (06.07.17) £87,516 £13.00 Limited (Barratt Homes)

TOTALS 20,139 - - - £272,323 - WAULT - 4.37 years

Stepped Rental Increases:6th July 2014 - £87,1916th July 2015 - £100,6056th July 2016 - £105,6356th July 2017 - Open Market ValueTenant has sublet 1,655 sq ft to Hochtief PPP Solutionsexpiring 6th July 2015 - £18,000 per annum.The current passing rent is £73,777 however the vendor will top up the rent to the July 2014 fixed increase.

Stepped Rental Increases:6th July 2014 - £87,5166th July 2015 - £100,9806th July 2016 - £106,0296th July 2017 - Open Market Value.The current passing rent is £74,052 however the vendor will top up the rent to the July 2014 fixed increase.

30,000 sq ftHQ office consent granted

30,000 sq ftHQ office consent granted

TENUREHeritable Interest (Scottish equivalent of English freehold).

EPC RATINGThe property currently has an ‘E’ rating. A copy of the energy performance certificate is available upon request.

VATThe property has been elected for VAT and therefore VAT will be applicable on the purchase price. We would anticipate that the property will be sold as a TOGC and therefore no VAT will be payable.

PRICEWe are seeking offers in excess of £2.45m excluding VAT. This reflects a net initial yield of 10.5% with a reversion to 11.93% net of costs at 5.8% (represents a capital value per square foot on the net internal area of £122).

CAPITAL ALLOWANCESThere were capital allowances of £463,228 identified in 2010. £330,915 of capital allowances remain available to be claimed.

FURTHER INFORMATIONFor further information, please contact the joint selling agents.

Christian Brucecbruce@redpathbruce.co.ukDD 0131 240 1261

Alasdair Steelealasdair.steele@knightfrank.comDD 0131 222 9622

Andrew Shiellsandrew.shiells@knightfrank.comDD 0131 222 9617

HIGHLY QUALITY OFFICE INVESTMENT OPPORTUNITY

7 BUCHANAN GATE

Particulars: These particulars are not an offer of contract, nor part of one. You should not rely on statements by Knight Frank LLP and Redpath Bruce LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP and Redpath Bruce LLP have any authority to make representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct.VAT: The VAT position relating to the property may change without notice.

Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. Redpath Bruce LLP, Chartered Surveyors, is a limited liability partnership, registered in Scotland No: SO301894, having its registered office at 103 West Regent Street, Glasgow, G2 2DQ. A full list of partners is available on request from 103 West Regent Street, Glasgow, G2 2DQ. May 2014.