PropLens · 1 Meadowbank Ave, Edinburgh, Edinburgh City, EH8 7AP

Offer range · Operational reposition

£190,000

£215,000

Lower end · 20% Upper end · 15%

A 28% discount off asking lands at the upper end (£215,000); 37% off lands at the lower end (£190,000).

At asking, Yield on Cost is 8.4% (Marginal). The lender lens softens above the upper end of the range.

Income basis Vacant — underwriting income from Edinburgh 1,500-4,000 sqft conventional office median (Fair-condition adjusted)

£31,500 − £0 → NOI £31,500 Refurb to let £53,250 £25/sqft cellular refresh × 2,130 sqft NIA

Offer explorer

Your offer

£215,000

Equity required

£0

Lender lends £162,500 against VP £250,000

Cash-on-cash

DSCR @ 8%

2.42×

Same at any price

Net cash flow

£18,500

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 2.42× Strong

Stress DSCR @ 10% rate 1.94× Strong

Debt Yield (NOI / Loan) 19.4% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £31,500 · VP £250,000 (lender basis) · Refurb-to-let £53,250 (£25/sqft cellular refresh × 2,130 sqft NIA)

Thesis

Vacant tenement office of 2,130 sqft NIA over ground, mezzanine and basement, adjacent to the Leith Walk corridor and the consented Meadowbank stadium regeneration. The conventional underwriting case rests on Edinburgh's secondary office median rent (£17.41/sqft, condition-adjusted to £14.8/sqft) producing ERV of £31,500 and a vacant-possession value of £250,000. The methodology range solves to £190,000–£215,000 at the standard 20%/15% cash-on-cash hurdle band, assuming refurb-to-let of £53,250 funded alongside the purchase. Asking (inferred) sits materially above the upper end of that range. A multi-let restructure to Office+Health rooms is the principal value-add angle (see appendix), with Edinburgh Leith Walk rates of £64/sqft producing stabilised income materially above the conventional comparison.

What's wrong with it

100% vacant on completion; no income to support debt service in Year 1.
Open-plan layout with two entrances suggests prior fit-out for owner-occupier — not laid out for cellular multi-let without works.
Basement level constrains lettable area; useful for storage but not full-rate office space without natural light intervention.

What's right with it

Corner tenement frontage with two separate entrances — supports a two-tenant or multi-let configuration immediately.
EH8 location adjacent to Leith Walk corridor places the building in Edinburgh's strongest multi-let licence rate band (£64/sqft Office+Health).
Owner-occupier sale with vacant possession removes lease-renegotiation risk; the buyer dictates the operating model from day one.

Risks

Vacant on completion — Year 1 cash flow depends on lease-up speed; 6-month void assumed.
Multi-let licence rates above £55/sqft assume Leith Walk-tier demand; Meadowbank east of corridor may discount.
Empty rates payable from month 4 of void (3-month commercial exemption).

DD gaps

Listing was extracted with POA marker; £300,000 asking is inferred. Verify with selling agents (Emily Anderson, Hannah Barnett) before any offer.
Brochure not on file — RV, EPC, planning history, and floor breakdown all unconfirmed.
Conservation area status uncertain per listing — confirm Edinburgh CEC zoning before scoping any external works.

Considerations

RV estimated at £25,000 (c. £12/sqft NIA secondary Edinburgh office benchmark); verify with Scottish Assessors Association.
Two separate entrances support multi-tenant configuration with limited reconfiguration.
Adjacent regeneration (Meadowbank stadium site, c. 600 homes consented) may shift local rental tone over 5-7 years.

Property & Valuation

Facts, condition, comparables, valuation stack, and purchase-cost schedule for due-diligence reference.

Facts

Address	1 Meadowbank Ave, Edinburgh, Edinburgh City, EH8 7AP
Property type	Office
NIA	2,130 sqft (×0.85 from 2,506 stated)
Tenure	Freehold (assumed)
Asking	£300,000 (inferred — POA per Trello, verify)
£/sqft asking	£141/sqft NIA
Condition	Fair
Portal	LoopNet
Agents	Emily Anderson, Hannah Barnett
Lease terms	Vacant possession on completion. Owner-occupier sale. No tenancy in place.
RV (estimated)	£25,000 — c. £12/sqft secondary Edinburgh office benchmark; not from brochure

Photos

Physical assessment

Traditional four-storey stone-built corner tenement with prominent return frontage; strong street visibility to vehicular and pedestrian traffic.
Office accommodation arranged across ground, mezzanine and basement levels — bright open-plan interior, currently configured for owner-occupier use.
Two separate entrances support a two-tenant or multi-let configuration; layout flexibility is a value-add asset, not a cost.
Basement level present; quality of natural light unconfirmed without brochure, may discount lettable rate for that floor.
Mixed-use neighbourhood adjacent to Leith Walk corridor and Meadowbank regeneration (c. 600 new homes consented at the stadium site).
Conservation area status uncertain per listing description; LBC implications for any external works would need verification.
EPC band not stated; visible condition consistent with Fair-rated occupier-grade office stock.

Per-unit income

Single open-plan office configured for owner-occupier use, with mezzanine and basement levels. No tenancy in place.

Floor	NIA (sqft)	£/sqft	ERV (£/pa)
Ground + mezzanine	~1,500	£14.80	£22,200
Basement	~630	£14.80	£9,324
Total	2,130	£14.80	£31,500

Floor allocation between ground/mezzanine and basement is estimated; verify with brochure. Conventional ERV at Edinburgh 1,500-4,000 sqft median £17.41/sqft (Edozo Insight 2026-03, n=71 mid-sized), adjusted ×0.85 for Fair condition. Multi-let licence-rate income (Office+Health, £64/sqft Edinburgh Leith Walk) is the value-add scenario; see angles.

Yield selection

Selected ARY: 10.75%

Edinburgh secondary office midpoint (9-10%) plus 175 bps sub-£500k lot-size adjustment. East-of-corridor location is secondary (not prime Princes Street / New Town), not peripheral. Term yield: 10.0%. Reversion yield: 10.75%. Multi-let premium (50-150 bps over comparable single-let) captured in the void/rent-free deductions rather than the headline yield.

ARY	Implied gross value at ERV £31,500	Delta vs base
10.25%	£307,000	+4.8%
10.75% (selected)	£293,000	base
11.25%	£280,000	-4.5%

Valuation stack

Approach	Value	Workings
Rack Rent (gross)	£295,000	ERV £31,500 / 10.75%
VP (MV3, lender basis)	£250,000	Gross capital £293,023 less 6mo void (£15,750), 6mo rent-free (£15,750), reletting fees (£3,150), holding costs (£8,350)
T&R	n/a	Property is 100% vacant; no term income to capitalise.
MV1 (stabilised, multi-let)	c. £950k	Stabilised multi-let NOI c. £104k / 10.75% — see Multi-let angle for full workings
MV2 (day-1 trading)	c. £730k	Multi-let gross × 70% occupancy × 70% margin / 12.25% (ARY + 150 bps)
90-day restricted	£200,000	VP × 0.80 (lender stress)
180-day restricted	£225,000	VP × 0.90 (lender stress)
Asking (inferred)	£300,000	POA per Trello; £300k taken from prior analysis. Verify.

Acquisition benchmark

Edinburgh secondary office benchmark (acquisition): £120-180/sqft NIA for stock requiring lease-up. Asking £300k / 2,130 sqft NIA = £141/sqft, which sits within benchmark but assumes a stabilised tenant in situ. Vacant on completion, the building's underwriting £/sqft (at upper end of range £101/sqft) sits below benchmark — consistent with the lease-up risk being priced in.

Purchase costs

Illustrated at upper end (£215,000). Costs scale linearly with price across the range.

Item	Amount
LBTT non-residential (Scotland)	£650
Legal fees	£4,500
Disbursements	£650
Broker fee (1%)	£2,150
Lender arrangement (2% of 65% LTV loan)	£3,250
Lender legal	£2,500
Surveys	£2,000
Subtotal purchase costs	~£15,050
Refurb to let (light, £25/sqft cellular refresh × 2,130 sqft NIA)	£53,250
Empty rates (3 months payable; 3-month commercial exemption)	£3,113
All-in cost at upper end	£286,413

Annual rates if held vacant beyond exemption: £12,450 (RV £25,000 × Scotland UBR 0.498). Small Business Bonus Scheme relief unavailable above £18k RV.

Strategy & Appraisal

Value-add angles, holding-structure recommendation, and supporting analyses for the bid thesis.

Value-add angles

Multi-let serviced-office restructure (Office+Health)Strong

Subdivide 2,130 sqft NIA into c. 10-14 serviced offices and 2-3 health/therapy rooms, licensed monthly on flexible terms. At Edinburgh Leith Walk Office+Health rates (£64/sqft, scoring-results v4, March 2026), gross licence income is £136,320. Effective gross at 90% stabilised occupancy: £122,688. Running costs at 15%: £18,403. Stabilised NOI: £104,285. MV1 at 10.75%: c. £970,091. Refurb-to-let £53,250 (light, cellular layout already supports subdivision with cosmetic works).

Max purchase supporting this angle (15% c-on-c on stabilised NOI, same lender basis): c. £620,000. Key risk: Edinburgh east-of-corridor demand may discount Leith Walk licence rates by 10-20%; sensitivity at £55/sqft still produces stabilised NOI of £89,620 with c. £833,672 MV1.

Two-tenant conventional lease (lower-risk path)Moderate

Two separate entrances support letting ground/mezzanine to one tenant and basement separately at a discounted rate. At Edinburgh 1,500-4,000 sqft median rates (£17.41/sqft, Fair-adjusted £14.8/sqft), conventional rent roll of £31,500. Lower management overhead than multi-let; longer leases reduce ongoing letting costs.

Max purchase at this angle (this is the headline range): £190,000 – £215,000. Key risk: Year-to-year covenant on incoming tenants likely; lender will treat as VP-basis underwriting rather than T&R until WAULTC builds.

Owner-occupier resale (developer flip)Weak

Resell post-refurb to an Edinburgh end-user / small professional firm. Edinburgh secondary office sale £/sqft typically £150-200; at £175/sqft for 2,130 sqft NIA, GDV would be c. £372,750. Less refurb £53,250, less 5% sales costs, less 20% profit hurdle, less 1.07× cost grossing leaves limited margin against an asking of £300k.

Max purchase at this angle: c. £230,000. Key risk: owner-occupier demand for vacant tenement office stock is thin in Edinburgh secondary; selling timeline likely 9-15 months.

Holding structure

Pension purchase (SSAS) as the primary route. 100% commercial office is SSAS-eligible. Pension shelters licence/rental income and capital gains within the scheme. At 50% LTV, the SSAS range solves to £170,000 – £200,000; if pension capacity is below the equity requirement, a PropCo/OpCo split holds the building in the pension and the multi-let operating business in a trading company, with the OpCo paying market licence fees to the SSAS.

Sources

Edozo Insight — Edinburgh conventional office lease rates by size band (March 2026)
Ryden 90th Scottish Property Review — Edinburgh secondary office yields (2025)
Scottish Assessors Association — RV verification (lookup pending)
LoopNet listing — primary source
PropLens multi-let scoring research v4.0 (March 2026) — Edinburgh Leith Walk Office+Health licence rates

Jurisdiction

Scotland