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Graham and Sibbald’s Summer Commercial Property Round-Up

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Graham and Sibbald’s Summer Commercial Property Round-Up

Graham and Sibbald’s Summer Commercial Property Round-Up
June 18
09:33 2018

Chartered surveyors Graham & Sibbald have been instructed to sell an increasing number of leisure investments in a growing market where the right call can provide high yield returns for those investors who are willing to purchase the heritable interest in a property with a sitting tenant.

Pete Seymour explains that in spite of the persistent negativity surrounding various global issues – including Brexit – the Scottish commercial property sector is bucking the trend.

Returns remain at around 8-15%, which themselves offer a substantially better rates that one might find for interest on cash, and significantly better than LIBOR (currently around 0.93%).

Meanwhile, income streams are proving somewhat more diverse than those that are simply rental-based; indeed, some leases are reducing rental levels by taking a split of the machine income and/or tying the tenant to a particular supplier and enjoying income from the barrelage of the unit.  While these income streams are generally treated at a much higher yield, they can offer landlords a significant uplift in rent.

Graham and Sibbald’s recently completed sale of the Mormond Inn, in Strichen (pictured above), and the Inn at Kippen (main page). With two other investments under offer and two other pub/restaurants just brought to market, there is real appetite for small lot investments across the UK and overseas. With that in mind, it would appear that Brexit and other political issues are not yet affecting purchasers’ decisions to invest in Scotland.

Pete Seymour is Head of Licensed Trade and Leisure Agency at Graham & Sibbald. Visit www.g-s.co.uk for more information on how they can help market your business.

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