6 Bedlay View

Executive Summary

• Modern single let industrial building of 30,604 sqft with a WAULT to expiry of 5.5 years.
• Strategically located within the established Tannochside Business Park, centrally located between the M73, M74 and M8 motorways, 7 miles east of Glasgow.
• The property has an EPC A(04)
• The property is let to Macfarlane Group UK Ltd, the UK’s largest packaging distributor
• The property is subject to an FRI Lease (with Schedule of Condition) expiring 31 August 2031. The 2026 break option has not been exercised.
• Passing rent of £198,926 pa, reflecting just £6.50 per sqft and an opportunity to increase the rent at the next rent review on 1 September 2026
• ERV of £9.75 per sqft, reflecting £298,389 per annum
• Heritable Interest (Scottish equivalent of Freehold)

Proposal

We are instructed to seek offers in excess of £2,875,000 (Two Million Eight Hundred and Seventy-Five Thousand Pounds) Sterling, exclusive of VAT.

A purchase at this level would show a net initial yield of 6.50%, after allowing for standard purchasers’ costs and a reversionary yield of 9.75%.

Location

Tannochside Park is an established industrial estate in a prime location for logistics and manufacturing. The park is strategically located for direct access to central Scotland’s key motorway links, lying approximately half a mile from the M8 motorway, connecting Glasgow (7 miles to the West) and Edinburgh (35 miles to the East). The M73 and M74 motorways are just 1.5 miles away.

Tannochside Park is near other well established industrial location such as Bellshill, Eurocentral and Newhouse. It provides industrial and distribution space for occupiers seeking access to the central Scotland motorway network.

SITUATION

The industrial park was established in 1993 as part of the Lanarkshire Enterprise Zone and comprises an area of approximately 80 acres with a mix of high quality industrial and distribution facilities.

The subjects are located at the eastern end of Tannochside Park with neighbouring occupiers including Wayfair, Belgrade Insulation, Hilti and Whistl.

DESCRIPTION AND SPECIFICATION

The property comprises a modern detached industrial unit of steel portal frame construction clad with insulated profile metal sheeting under a pitched roof.  There is a single story office block with reception area, administrative office and welfare facilities.

There building has LED lighting throughout and was significantly refurbished in 2015.

The property benefits from 7.60m eaves height, 9.65 metre apex height and 3 roller shutter loading doors.

Externally there is a well-proportioned and secure yard area which provides 38 car parking spaces. The yard depth is 37.5 metres.

ACCOMMODATION

The subjects have been measured in accordance with the RICS Code of Measuring Practice (6^th Edition) and we estimate the areas to be as follows:

Warehouse 2,635 sq m (28,366 sqft)

Office 208 sq m (2,247 sqft)

TOTAL 2,843 sq m (30,604 sqft)

TENANCY

The property is let on FRI (with SoC) terms to Macfarlane Group UK Limited until 31 August 2031. The current passing rent is £198,926 per annum (£6.50 per sqft). The 2026 tenant break option has not been exercised. There is an open market upwards only rent review due on 1 Sept 2026.

TENANT OPERATION

Macfarlane Group was founded by Lord Macfarlane in 1949 and went on to float on the London Stock Exchange in 1973. The group is headquartered in Glasgow and operates across the UK and Europe. It is the UK’s largest packaging distributor employing over 1,100 people.

It operates through Regional Distribution Centres, providing distribution of protective packaging materials to their 20,000 customers.

The most recent set of accounts dated 31 December 2024, show Turnover of £195.6 million, Pre-Tax Profit of £16.6 million and Net Current Assets of £3.8 million. Total Shareholders’ funds of £75 million.

INVESTMENT RATIONALE

• Strategically located industrial building in a prime central Scotland location
• Opportunity for significant reversion at the 2026 rent review
• Warehouse is an essential part of the tenant’s operation and is close to the Group’s Head Office located in Glasgow
• EPC of A

TENURE

The property is held on a heritable title (Scottish equivalent of English freehold).

EPC

The property has an EPC rating of A(04). Copy of the EPC is available on request.

VAT

The property is elected for VAT, however, it is envisaged that the transaction will be treated as a Transfer of a Going Concern (TOGC).

ANTI-MONEY LAUNDERING

To comply with the current anti-money laundering regulations, all parties of any qualifying transaction are required to undertake appropriate due diligence in advance of the transaction, including identifying and verifying all parties and establishing the source(s) and legitimacy of dunding. All parties will be required to disclose all relevant information prior to conclusion of missives to enable all parties to meet their respective obligations under the Regulations.

PROPOSAL

We are seeking offers in excess of £2,875,000 (Two Million Eight Hundred and Seventy Five Thousand Pounds Sterling) exclusive of VAT for our client’s heritable (freehold) interest subject to and with the benefit of the existing lease. A purchase at this level would show a Net Initial Yield of 6.50% and a Reversionary Yield of 9.75% , after allowing for standard purchaser’s costs.

FURTHER INFORMATION

A data room of information is available to seriously interested parties.