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Lerwick – Government Let Office Investment

Charlotte House, Commercial Road, Shetland, ZE1 0LQ

Property Type:
Commercial
Sub Type:
Office
Tenure:
Freehold

Description

  • Lerwick is the Capital and main business centre of the Shetlands.
  • Charlotte House has been let to the Government since 1977.
  • 19,953 sq ft (1,853.8 sq m) NIA of office accommodation.
  • Heritable (Scottish equivalent of Freehold).
  • Over 16.6 years unexpired to the undoubted covenant of The Secretary of State for Communities and Local Government.
  • Topped up rent of £496,000 per annum.
  • The Government did not exercise their break option in March 2018.
  • The lease benefits from very attractive fixed uplifts in 2027 and 2032.
  • Value of income until expiry approximately £9,540,000 as of October 2020.
  • The only Job Centre in the Shetland Islands.
  • The Government use the building for additional functions including a Health Assessment Advisory Centre and Scottish Environment Protection Agency.
  • Historic low UK Gilts making real estate investments secured against UK Government covenants highly attractive (5 year UK Government Gilt -0.06% 1 October 2020).
  • Offers sought in excess of £8,860,000 reflecting a net initial yield of 5.25% assuming standard Scottish purchaser’s costs.