Henry Duncan House - Edinburgh_Property for Sale

Henry Duncan House, 118 - 124 George Street, Edinburgh, EH2 4LH

Henry Duncan House - Edinburgh

Description

Edinburgh is Scotland's capital city, and one of the most dynamic and fastest growing cities in the UK.
The city is renowned as both a major European commercial centre and a leading global tourist destination.
George Street is uniquely regarded as both Edinburgh's most prestigious retailing street and a prime office address.
High quality office building arranged over basement, ground and four upper floors extending to 56,183 sq ft with 21 secure basement car parking spaces.
Rarely available modern, open plan floor plates of 10,000 sq ft - 11,000 sq ft behind a Category B listed Georgian facade.
Single let to to TSB Bank Plc on FRI lease terms until 27th December 2031 (6.3 years unexpired term).
TSB Bank Plc have an investment grade covenant strength with a long term credit rating of Baa1 from Moody's and reported pre-tax profits of £285.1 million for the 2024 financial year.
Current passing rent of £1,485,000 per annum, reflecting an exceptionally low passing rental rate of £25.12 per sq ft for Edinburgh city centre.
Opportunity to unlock rental growth with a forthcoming rent review on 26th December 2026.
EPC 'B' Rating.
Heritable Title (Scottish Equivalent of English Freehold).

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Attributes

Building area gross

5,220 m²

Occupancy

100%

WAULT to expiries

6.3 years

Asking price

MYR 105,814,000

NOI

MYR 8,471,000

Media

Investment Highlights

RARE OPPORTUNITY

To acquire one of the most substantial, unencumbered office buildings on George Street, held in the same ownership for over 20 years.

MARKET DYNAMICS

Edinburgh is one of the UK’s strongest regional office markets characterised by chronically low levels of supply and robust occupational demand.

EXCEPTIONAL TENANT COVENANT

TSB Bank Plc is one of the UK’s best known retail banks with over 5 million customers and an investment grade covenant strength.

ASSET MANAGEMENT OPPORTUNITIES

The tenant recently sub-let space and is marketing part of the building, to let. There is an opportunity to engage with the tenant to discuss either full or partial lease surrenders and/or agree direct leases with future subtenants to crystallise rental growth.

STRONG RESIDUAL VALUE

The investment is heavily underpinned by vacant possession value, with recent VP offices sales in Edinburgh city centre achieving sales rates of between £260 - £360 per sq ft.