PropLens · 1051 Great Western Rd, Glasgow, Glasgow City, G12 0XP

Offer range · Income hold

Offers Over £595,000 (Plus VAT if applicable)

Asking{{ASKING_QUALIFIER}}

Step down {{ASKING_MINUS_UPPER}} · −{{DISCOUNT_TO_UPPER}} to reach {{COC_UPPER}} cash-on-cash

TargetUpper end · {{COC_UPPER}} c-on-c hurdle

vs asking

−{{DISCOUNT_TO_UPPER}}

Step down {{UPPER_MINUS_LOWER}} · −{{UPPER_MINUS_LOWER_PCT}} to reach {{COC_LOWER}} cash-on-cash floor

Lower end · {{COC_LOWER}} c-on-c floor

vs asking

−{{DISCOUNT_TO_LOWER}}

Range {{RANGE_LOWER}} – {{RANGE_UPPER}} Bid band · {{DISCOUNT_BAND_LABEL}} {{DISCOUNT_BAND_EXPLAIN}}

Stabilised income

£92,740/ yr NOI

£109,106 ERV − £16,366 op. costs → NOI

ERV from market comparables (vacant on sale; vendor in liquidation, occupier on short licence). Year 1 effective cash-on-cash depends on lease-up speed.

Cost to stabilise

{{REFURB_CAPEX}}one-off refurb

Funded with the purchase — already in equity required on the explorer.

Offer explorer

Your offer

£865,000

Equity required

£0

Lender lends £656,500 against VP £1,010,000

Cash-on-cash

DSCR @ 8%

1.77×

Same at any price

Net cash flow

£40,220

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 1.77× Viable

Stress DSCR @ 10% rate 1.41× Viable

Debt Yield (NOI / Loan) 14.1% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £92,740 · VP £1,010,000 (lender basis) · Refurb-to-let __REFURB_FMT__ (__REFURB_BASIS__)

Thesis

1051 Great Western Road is a 6,024 sqft licensed bar, restaurant, and function venue in Glasgow's West End, offered for sale by the Joint Liquidators of the previous operating company (GCOS Limited, in liquidation since May 2025). The property is held on a long ground lease to 2081 at a peppercorn rent. The current occupier is on a short licence and will vacate on sale. The investor opportunity has three principal lenses: retain as licensed hospitality and relet to a new operator on a long lease, acquire to operate directly (drawing on the stated £14k/week trading turnover), or pursue change of use to an alternative permitted by planning. The income-lens range at conventional finance is £800,000 to £865,000; asking £595,000 sits below the lower end, leaving headroom above both cash-on-cash hurdles if the assessed ERV is achievable in retenanting.

What's wrong with it

Vendor's operator failed (in liquidation since May 2025); the trading covenant is gone and lease-up risk is elevated.
FF&E and kitchen equipment owned by the present occupier; separate negotiation required if buyer wants the trading kit, otherwise refit cost falls to the incoming operator.
VAT may apply on top of asking ("Plus VAT if applicable" per brochure); without TOGC election the effective cash outlay increases by 20%.

What's right with it

Prime Glasgow West End location with affluent catchment (Hyndland, Broomhill, Kelvindale) and major local employers (Gartnavel Hospital, Leonardo Inn Hotel).
Long ground lease to 2081 (~55 years unexpired) at £1 pa fixed: effectively freehold-equivalent for tenure purposes.
Multiple alternative-use angles flagged (SA, nursery, business centre) preserve optionality if leisure retenanting proves slow.

Risks

Operator failure (vendor in liquidation) signals that the previous trading model did not work at this property; an incoming operator must articulate a different proposition.
Glasgow short-term let control zone restricts the SA alternative use without specific planning and licensing consent.
VAT may apply on the purchase price (per brochure); TOGC election requires continuity of licensed use, which an alternative-use buyer cannot offer.

DD gaps

Verify ground lease terms in full (any onerous covenants, alienation restrictions, change-of-use provisions).
EPC certificate and any building survey reports.
Full trading information from current occupier (offered only to seriously interested parties after viewing).
FF&E inventory and separate price for trading equipment.

Considerations

Long ground lease (55 years unexpired); some lenders treat sub-70-year leasehold conservatively for refinance, though 55 years is generally workable.
Sui generis licensed use; conversion to non-licensed use requires planning consent and may affect insurance and rating treatment.
Listing flags VAT on top of asking; structuring the purchase as a TOGC (transfer of going concern) requires the buyer to continue licensed trade and notify HMRC at completion.

Property & Valuation

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

Facts

Address	1051 Great Western Rd, Glasgow, Glasgow City, G12 0XP
Asking price	Offers Over £595,000 (Plus VAT if applicable)
Property type	Licensed bar / restaurant / function venue
Total GIA	6,024 sqft (GF 3,401 + 1st 936 + 2nd 1,687)
NIA (estimated)	5,120 sqft (×0.85 of GIA)
Tenure	Long ground lease until 28 May 2081 (~55 years unexpired) at £1 per annum
Use class	Class 3 (food and drink) / sui generis (licensed premises)
Rateable value	£49,500 (from 1 April 2023)
Trading position	Vendor (GCOS Limited) in Liquidation since May 2025. Current occupier on short licence to occupy.
Stated trading turnover	~£14,000 per week net of VAT (≈£728k pa), unverified, no warranties provided
Outside space	Beer garden, roof terrace, c. 20 parking spaces (some on public road)
EPC	Available on request (not stated in brochure)
Portal	LoopNet
Listing URL	View on LoopNet
Agent	Peter Darroch, CDLH
Jurisdiction	Scotland (Glasgow West End, G12)

Photos

Physical assessment

Two-storey plus attic period stone building dating from c. 1897, under pitched and slated roof. Single-storey side extension incorporating roof terrace.
Ground floor (3,401 sqft): main bar/restaurant with fitted bar servery, raised dining area, casual bar/dining around bar servery, secondary dining area, commercial kitchen, dry goods store, beer cellar, ladies/gents toilets. Stated seating capacity c. 60 main + 40 secondary.
First floor (936 sqft): small bar serving 20, external first-floor terrace seating a further 40, secondary dining area, toilets.
Second floor (1,687 sqft): function room seating 60, second kitchen area.
External: significant beer garden areas, c. 20 car parking spaces (some on public road, not part of demise).
Mains services connected: water, electricity, gas, drainage. Gas-fired central heating.
FF&E and kitchen equipment owned by current occupier; separate offer required if buyer wants the trading kit.
Condition rating: Good. Period building, currently trading, no description of significant defects or refurbishment requirement.

Per-unit income

Floor	GIA (sqft)	Rate £/sqft	Gross rent
Ground floor (bar/restaurant)	3,401	£22	£74,822
First floor (bar/terrace)	936	£15	£14,040
Second floor (function room)	1,687	£12	£20,244
Total gross ERV	6,024		£109,106
Less 15% leisure running costs			(£16,366)
Stabilised NOI			£92,740

Per-floor rates reflect Glasgow West End leisure benchmarks: ground floor licensed premises £20–25/sqft, upper-floor ancillary £12–18/sqft. Trading turnover stated at £14k/week net VAT (~£728k pa) implies operator rent-affordability of c. £100k–£130k at typical leisure rent-to-turnover of 14–18%, consistent with the ERV estimate.

Yield selection

Glasgow secondary leisure / licensed property yields per market data: prime city-centre licensed 7–8%, West End and prominent neighbourhood 8–9%, secondary 9–10%. 1051 Great Western Road sits in the prominent West End neighbourhood category: high footfall, affluent catchment (Hyndland, Broomhill, Kelvindale), local employer demand (Gartnavel Hospital, Leonardo Inn Hotel).

Applied yield: 9.0%. Mid-point of West End/neighbourhood band. No lot-size adjustment (deal above £500k threshold).

Yield	Stabilised value
8.0%	£1,160,000
9.0% (base)	£1,030,000
10.0%	£925,000

Valuation stack

Basis	Value	Method
Rack rent (gross capitalisation)	£1,210,000	ERV £109,106 ÷ ARY 9.00%
VP (vacant possession, post-deductions)	£1,010,000	Rack less 12-month void, 6-month rent-free, 10% reletting fees, RV/24 + £350/mo holding × 12 mo
MV1 (stabilised, post-retenanting)	£1,030,000	NOI £92,740 ÷ ARY 9.00%
90-day restricted marketing	£825,000	MV1 × 0.80 (lender stress)
180-day restricted marketing	£925,000	MV1 × 0.90 (lender stress)
Asking	£595,000	Offers over (plus VAT if applicable)

Lender basis: VP (£1,010,000). T&R is skipped because the property is fully vacant on sale. Stabilised value assumes successful retenanting on a new full-repairing leisure lease.

Acquisition benchmark

Glasgow West End licensed property transactions in the last 24 months span £80–£200/sqft GIA depending on covenant strength, lease length, and trading position. At asking £595,000 across 6,024 sqft GIA, asking is £99/sqft, which sits within the West End benchmark range and at the lower end for a property of this scale and location quality (vacant possession discount).

Purchase costs

Item	Amount
LBTT (commercial bands, £595,000 purchase)	£18,250
Legal fees	£4,500
Disbursements	£650
Broker fee (1%)	£5,950
Lender arrangement (2% of 65% LTV)	£7,735
Lender legal	£2,500
Surveys	£2,000
Total purchase costs at asking	£41,585

Scottish LBTT non-residential bands: 0% to £150k; 1% £150k–£250k; 5% above £250k. At £595,000: £1,000 + £17,250 = £18,250. VAT may apply on top per brochure ("Plus VAT if applicable"); TOGC election neutralises VAT if continuing licensed trade.

Refurb / refresh contingency

FF&E owned by present occupier and may not transfer (separate offer required). Budget £40,000 refresh contingency for redecoration and minor M&E ahead of retenanting. Full operator fit-out is tenant cost on a new lease.

Strategy & Appraisal

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

Value-add angles

Retain as licensed hospitality (base case)

Relet to a new hospitality operator on a 10–15 year full-repairing lease at the assessed ERV of £109,106 pa. Stabilised NOI £92,740, value c. £1030k at 9% yield.

Max purchase (income lens): £800,000 (lower) / £865,000 (upper). Asking £595,000 sits comfortably below both ends, leaving headroom above the 15% c-on-c hurdle.

Key risk: Vendor's operator (GCOS Ltd) failed financially. Lease-up risk is elevated; the assessed ERV is illustrative and depends on a competent incoming operator with credible covenant.

Viability: Strong if a national or regional leisure covenant takes the lease at full ERV.

Owner-operator (occupier-led)

Acquire to run the bar/restaurant directly. Stated trading at £14k/week net VAT (~£728k pa) implies the unit can support owner-operator economics. SSAS-funded purchase with the trading company paying rent on a long lease is a feasible structure (Class 3 licensed property is generally SSAS-eligible subject to scheme rules).

Indicative SSAS range: £715,000 – £800,000 at 50% LTV.

Key risk: Operational complexity (staff, supply chain, license compliance) differs materially from passive investment.

Viability: Strong if investor has hospitality operator expertise or partners with one.

Alternative use (subject to consent)

Brochure flags suitability for short-term residential letting, daycare nursery, business centre, or other commercial uses. Glasgow West End is a high-demand location for managed-workspace and serviced accommodation; the 6,024 sqft footprint plus parking and outdoor space supports several conversion scenarios.

Indicative routes: (a) Serviced accommodation conversion (subject to short-term let licensing in Glasgow's regulated zones); (b) Nursery use (requires planning consent and Care Inspectorate registration); (c) Managed workspace / flex office (requires re-fit at c. £75/sqft = c. £450k).

Key risk: Glasgow operates a short-term let control zone covering the West End; SA conversion requires both planning consent for change of use and licensing. Status is restrictive.

Viability: Moderate. Each path requires planning DD before committing.

Holding structure

Vehicle: Company (SPV) is the standard fit if the property is held as a passive investment with arm's-length lease to an operating tenant. SSAS is potentially eligible (Class 3 licensed property generally qualifies subject to scheme rules and trustee approval) and offers tax-free income and capital gains within the pension wrapper; SSAS purchase at 50% LTV produces a tighter range (£715,000 – £800,000) reflecting the lower borrowing. Owner-operator economics may favour a PropCo/OpCo structure with the trading company on a long FRI lease to the property-holding vehicle.

Sources

Sale brochure: CDLH for Joint Liquidators of GCOS Limited (2025-2026 marketing campaign)
LoopNet listing: https://www.loopnet.co.uk/listing/1051-great-western-rd-glasgow/38297620/
Edozo: Glasgow commercial rental and yield benchmarks (Q4 2025)
Ryden: Scottish Property Market Report 2025
Knight Frank: Glasgow occupier market data 2025
Glasgow City Council: short-term let control zone designation (West End)
Scottish Government: LBTT non-residential band tables

Jurisdiction

Scotland