CCL are delighted to bring to market a portfolio of 3 unique business centres providing luxurious serviced office accommodation in Moray. Park House and Caledonian House are located in Elgin, the capital of Moray and the Speyside Business Centre is located in the nearby town of Fochabers. The portfolio generates an annual income in excess of £241,000 producing a ROI in the region of 8% at the asking price.
Park House Business Centre is set within an imposing Georgian manor, carefully restored to house a suite of contemporary serviced offices. The building is accessed via a sweeping staircase at the main entrance, or by a DDA compliant ramp leading to the ground level. Through the main entrance is a large hall with a comfortable waiting area and post boxes.
Park House currently sits at between 95%-100% occupancy. Offices are located on all four floors. The second floor houses a shower room and toilet, with additional male, female and disabled toilets on the ground floor. The ground floor is also home to a meeting room with a large meeting table, comfortable seating, AV facilities and a hot drinks station. In between the first and second floors is a decking area with outdoor seating.
There are 23 units at Park House, eight of which are leased by a single tenant and could be developed further.
Sitting at the heart of Elgin's bustling High Street and housed in a restored bank house, Caledonian House Business Centre is one of the most desirable business addresses in the North of Scotland. The newest addition to the portfolio, every detail across the three-storey site has been carefully designed to optimise performance and service.
Walking up the grand central staircase with picked-and-pointed stone work, the bright first floor reveals itself. This floor hosts four offices, including a very large 15m long workspace which boasts five floorto-ceiling windows overlooking the High Street. Also on the first floor is a shared meeting room and two bathrooms which have been designed to match the building's unique style.
Walking up the staircase to the second floor, natural light floods in through a large sky light. The second floor is home to six offices and the building's server room. The offices on this floor are full of character, defined by large wooden beams and full height picked stone walls. Each workspace is abundant with network points, power sockets and natural light.
The building's heating and lighting is managed by a smart network of sensors to ensure comfort and energy efficiency.
With modern comforts and careful restoration, Caledonian House Business Centre has attracted a wide mix of ambitious businesses, large and small, who are drawn to the unique aesthetic and large spaces.
Speyside Business Centre
Set near the banks of the mighty River Spey and at the heart of Scotland's multi-billion pound food and drink industry, the Speyside Business Centre is an impressive four storey collection of serviced offices. This business centre currently sits at 100% occupancy.
The building and private car park sit within a picturesque area of the historic village of Fochabers. It hosts a mixture of established local businesses and large national organisations who are drawn to its central location in the Moray-Speyside region.
Speyside Business Centre is accessed through a secure entry system at the main door, leading into a large waiting area. This floor hosts two very large office suites, each with a separate manager's office, multiple windows looking out to the wooded landscape and plenty of storage. Below this floor is a basement level which offers secure storage units. Moving into the first floor are four more offices and a kitchen area. All the offices on this floor are currently leased by a single large national firm. Finally, the attic floor hosts two more offices. Toilet facilities are located all four floors of the building.
The business centre recently underwent a comprehensive re-brand, and offers even more potential for development. With its ease of access to Inverness and Aberdeen, as well as the region's international industries, this business centre continues to attract a high calibre of tenant.
Collectively, these properties command the highest net rental rates (per square metre) in Moray for serviced office accommodation, and enjoy consistently high occupancy rates.
With an annual income of at least £241,000 this sale can offer at least an 8% return-oninvestment year-on-year, with intentionally low operating costs to maximise returns.
The portfolio has enjoyed consistently high occupancy rates. The Speyside Business Centre currently sits at 100% occupancy, while Park House Business Centre - which commands higher rental rates - has sat between 95-100% since it opened in 2010. Caledonian House, which has been open for less than a year, is well on its way to matching his trend.
The portfolio can also demonstrate a significant track record of rent increases and lease renewals. Many of the tenants at Park House Business Centre, the first to open in the portfolio, have been at the centre since day one. Rental income at this business centre has continued to increase year-on-year.
Leases are offered to the tenants inclusive of electricity, heating, secure entry, and internet. Our client's experience has shown this to be a major point of difference in the North of Scotland which contributes to a high tenant retention rate.
In addition to rental income, these business centres offer telephone services, cleaning, hot drinks and virtual offices as additional services for an extra charge. There is plenty of room to expand and develop these services.
The tenant roster includes national and multi-national businesses, such as The Global Energy Group, Brightworks, J&E Shepherd and Scottish Woodlands, as well as long-established local SMEs. With a tenant mix spread across sectors and organisational sizes, this investment provides a strong fortification against economic downturn and other external risks, such as Brexit.