10, Barossa Place, Perth, PH1 5JX
Asking £275,000 sits above the upper end (~14.6% above). Refurb-to-let capex of £58,800 on the cellular layout is in addition.
Offer explorer
Lender lens · five ratios
65% LTV · 8% IO · 7% costs · NOI £35,955 · VP £250,000 (lender basis)
10 Barossa Place is a vacant, two-storey detached former office in central Perth, already laid out as 13 cellular rooms across two floors. The cellular footprint removes the principal barrier to a multi-let restructure: there is no partition build required, only cosmetic refurb-to-let across the 2,350 sqft NIA. Perth is covered in PropLens multi-let research at £20/sqft Office+Health, indicating a stabilised gross of c.£47,000 and a stabilised NOI of £35,955 after 15% running costs. Anchored on stabilised NOI, the range solves to £205,000 to £240,000 at 20% / 15% cash-on-cash, with £58,800 of cellular refurb sitting outside the loan. Asking £275,000 sits above the upper end.
- Fully vacant. Year-one effective return depends on lease-up speed, with a 12 month void assumption baked in.
- Perth office competitive risk for private offices is HIGH per PropLens town data, so the bid relies on a mixed office plus health and wellness occupier mix rather than office-only.
- Period building with cellular layout: floorplate efficiency lower than a modern flexspace product (no shared core, no concentration of WCs/tea-points), which constrains pricing on the upper end of the licence range.
- Cellular fit-out already in place across 13 rooms, so refurb-to-let capex sits at £58,800 (cosmetic) rather than the £45-£70/sqft required for an open plan conversion.
- Detached two-storey building with private car parking, period features, and good natural light: positioned for the Health and Wellness and Private Office categories that score GO in Perth multi-let data.
- Central Perth address with a deep tertiary tenant pool. Beauty, Health, and Office competitive risk are LOW, LOW, and HIGH respectively, indicating room in the wellness segment.
- Multi-let occupier churn at 30 to 50% annual is normal; sustained 70 to 90% occupancy requires continuous marketing and active management.
- Specialist commercial lenders may discount licence income for the first 6 to 12 months of trading; cash position needs to cover lease-up to refinance.
- If conventional office demand is the only realistic let (no health and wellness uptake), single-tenant ERV of c.£21,253 produces a substantially lower value: c.£110,000 VP.
- EPC band and any planned MEES upgrade liability not stated on the listing.
- Rateable value and Small Business Bonus eligibility per individual room not yet established.
- Listed building status: period features suggest possible Cat B/C listing; LBC implications for any signage or fire compartmentation works require confirmation with Perth & Kinross Council planning.
- Possible listed building (Cat B or C). Internal cosmetic refurb generally does not trigger LBC, but signage, partition changes, or external alterations would.
- Multi-let licence income is non-standard for high-street lenders; specialist commercial finance is the indicated route, typically at 50 to 65% LTV with 6 to 12 months of trading evidence.
- SSAS eligibility is confirmed for the office use class. Holding within SSAS reduces leverage to 50% LTV but exempts rental income and capital gains from tax.