PropLens · 130 Springburn Rd, Glasgow, G21 1YL

Offer range · Development · hold-intent

£155,000

£220,000

Lower end · 20% Upper end · 15%

Asking £250,000 sits above the upper end (14% above £220,000). Range derived from stabilised NOI £72,600 on lender basis £570,000 (post-refurb stabilised value), net of refurb-to-let capex £420,000.

Income basis Stabilised NOI from ERV (post-refurb). Property is 100% vacant; year 1 effective cash-on-cash will be lower depending on lease-up speed.

£75,000 − £2,400 → NOI £72,600

Offer explorer

Your offer

£220,000

Equity required

£0

Lender lends £370,500 against VP £570,000

Cash-on-cash

DSCR @ 8%

2.45×

Same at any price

Net cash flow

£42,960

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 2.45× Strong

Stress DSCR @ 10% rate 1.96× Strong

Debt Yield (NOI / Loan) 19.6% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £72,600 · VP £570,000 (lender basis)

Thesis

A 9,855 sqft detached Victorian commercial building in Springburn (north Glasgow, weak-secondary commercial pitch), offered for sale by joint liquidators with vacant possession. Previous use as office and nursery accommodation. Asking £250,000 equates to 25.37/sqft, materially below the secondary-Glasgow conventional benchmark of £80 to £150/sqft, reflecting the liquidators' sale mechanism, the wholly vacant operating state, the secondary location, and the scale of refurbishment required to bring the asset to lettable condition. The methodology classifies this as a development deal on hold-intent: bid is anchored to stabilised NOI post-refurb. Range £155,000 to £220,000 after deducting £420,000 of refurb-to-let capex; asking sits 14% above the upper end. The asking £/sqft signal compresses materially once refurb is added: all-in to stabilised on the upper-end range produces £655,400 (67/sqft), against stabilised value £570,000 (58/sqft).

What's wrong with it

100% vacant with no income in place. Year 1 cash flow is negative absent reletting.
Large 9,855 sqft floorplate in a weak-secondary location. Single-let demand is thin at this scale.
Building is dated Victorian masonry; condition, M&E age, roof, and asbestos status all unverified.

What's right with it

Freehold tenure with dedicated parking (visible on photograph), unusual for north-Glasgow commercial.
Joint liquidators' sale provides motivated-vendor mechanism. The £25/sqft asking encodes the urgency.
Previous office and nursery use establishes precedent for Class 4 and sui generis operations within the existing planning envelope.

Risks

Condition risk: refurb scope unverified; full survey may reveal capex materially above the £420,000 methodology budget.
Lease-up risk: 9,855 sqft single-let demand in north Glasgow is shallow; subdivision into multiple tenancies likely needed.
Reversion risk: assumed stabilised rent £8.67/sqft NIA depends on achievable secondary office demand which is contracting.

DD gaps

Building survey: structural, roof, M&E age, asbestos register, EPC rating.
Rateable value confirmation and any empty rates relief eligibility.
Planning history: confirm existing use class, any conditions attached to nursery consent, and class-change permitted development.

Considerations

Springburn is weak-secondary; not in the PropLens multi-let coverage area. Single-let or subdivision-to-traditional-lease only.
Liquidators' sale typically completes on tighter timetables. Funding readiness affects bid credibility.
Asbestos risk is elevated in Victorian commercial buildings of this vintage; budget contingency advised.

SSAS variant · 50% LTV Range £105,000 to £185,000 if acquired through a SSAS. The reduced leverage (50% vs 65% LTV) raises the equity requirement to £249,000 (lower end) and £332,000 (upper end), but rental income and gains compound tax-free within the scheme. Property is specialist commercial and SSAS-eligible.

Property & Valuation

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

Facts

Address	130 Springburn Rd, Glasgow, G21 1YL
Tenure	Freehold
Asking	£250,000 (£250,000)
Stated GIA	9,855 sqft
NIA (×0.85)	8,377 sqft
£/sqft asking (GIA)	£25.37
Property type	Specialist · previously office / nursery
Condition	Fair (listing text default; no refurb indicator)
Tenancy	100% vacant; for sale on behalf of Joint Liquidators
Parking	Dedicated car park visible on listing image
Agent	Ryan Farrelly (LoopNet)
Portal	LoopNet listing

Photos

Physical assessment

Exterior: detached two-storey red-brick Victorian masonry building. Arched window heads on both floors indicate period construction (likely late 19th century). Visible external metal fire escape on the left elevation. Roof appears to be pitched slate or felt-on-felt; condition not assessable from listing photo.
Frontage and signage: minimal frontage signage visible. The building's elongated form and arched window pattern suggest origins as a institutional or industrial-civic use (probable school, mission hall, or workshop) repurposed.
Parking and access: tarmacked car park to the front accommodates 6+ vehicles in visible bay layout. Dedicated parking is a material asset in north-Glasgow secondary commercial.
Layout: not visible from the single listing photo. Previous use as office and nursery suggests cellular subdivision exists on one or both floors. Brochure or floor plan required to confirm.
Visible issues: none identifiable from the exterior photograph. Internal condition, EPC band, M&E age, asbestos register all unverified. Victorian commercial buildings of this scale routinely carry asbestos in pipe insulation, ceiling tiles, and floor coverings.
Surroundings: Springburn Road context (G21) is a mixed commercial-residential corridor. North Glasgow is a weak-secondary commercial pitch with elevated vacancy and limited rental growth.

Per-unit income

Stream	£/sqft	Annual
Current rent (vacant)	£0	£0
Stabilised ERV post-refurb (single-let conventional)	£8.95 NIA	£75,000
Landlord costs (insurance)	−	(£2,400)
Stabilised NOI	£8.67 NIA	£72,600

Base rate £9.00/sqft NIA from Glasgow weak-secondary 4,000+ sqft band. Fair condition factor 0.85 applies during the current-state ERV (£7.65/sqft, £62,500); post-refurb the condition uplifts to Good, restoring the base rate. Multi-let coverage not available for Springburn; single-let conventional is the operative model.

Yield selection

Step	Value
Glasgow weak-secondary office prime midpoint	11.0%
+175 bps sub-£500k lot size	+1.75%
ARY (rounded to nearest 25 bps)	12.75%
Term yield (ARY − 75 bps; n/a for vacant)	12.00%
Reversion yield (= ARY)	12.75%

Sensitivity (NOI £72,600 stabilised)

ARY	Stabilised value	Δ from base
12.25%	£592,653	+4.1%
12.75% (selected)	£570,000	base
13.25%	£547,925	−3.8%

Cross-check: Generic secondary commercial range from PropLens benchmarks is 10–12% prime, 11–14% secondary. Selected 12.75% sits inside the secondary band; appropriate for weak-secondary Glasgow with sub-£500k lot premium applied.

Valuation stack

Basis	Definition	Value
Rack Rent (gross ceiling)	ERV £62,500 / ARY 12.75%	£490,196
VP (MV3, current state)	Rack Rent less void 12mo, RF 6mo, reletting, holding	£370,000
MV1 stabilised (post-refurb)	NOI £72,600 / ARY 12.75%	£570,000
180-day restricted (MV1 × 0.90)	Realistic exit, 6 months	£513,000
90-day restricted (MV1 × 0.80)	Lender stress-test, compressed exit	£456,000
Asking	Joint Liquidators' sale	£250,000

VP workings (current state, 100% vacant)

Rack rent value: £62,500 / 12.75% = £490,196
Less void 12 months: (£62,500)
Less rent-free 6 months: (£31,250)
Less reletting fees 10%: (£6,250)
Less holding costs (RV £30k/24 + £350/mo × 12 months): (£19,200)
VP: £370,000 (rounded to nearest £5,000)

Lender basis for development hold-intent is the post-refurb stabilised value (£570,000), not the current-state VP. The VP figure here documents the current-state floor.

Acquisition benchmark

Asking £250,000 on 9,855 sqft GIA is £25.37/sqft (raw) or £29.84/sqft (NIA). PropLens commercial benchmark thresholds:

Under £100/sqft: likely good value, investigate further. Asking sits here.
£100-150/sqft: fair, standard market pricing
Over £200/sqft: likely overpriced unless income in place

The asking £/sqft signal is misleading in isolation: once £50/sqft refurb is added, all-in at upper-end purchase is £67/sqft against stabilised value £58/sqft. The headline discount narrows to a stabilised value premium.

Purchase costs

Item	At £220,000
LBTT (Scotland, non-residential)	£700
Legal fees	£4,500
Disbursements	£650
Broker fee (1% of price)	£2,200
Lender arrangement (2% of loan)	£7,410
Lender legal	£2,500
Surveys (RICS + asbestos + structural)	£2,000
Total purchase costs	£19,960
As % of purchase	9.1%
Plus refurb-to-let capex (8,377 NIA × £50)	£420,000
All-in cost basis	£655,400

LBTT bands: 0% to £150k, 1% £150k-250k, 5% above £250k. At £220,000 LBTT is £700. Surveys allowance assumes Victorian commercial vintage warranting asbestos and structural assessment in addition to RICS condition survey.

Strategy & Appraisal

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

Value-add angles

Refurb-to-let single-let conventionalModerate

Bring the building to lettable condition (£50/sqft Standard refurb) and let on a conventional FRI 5-year+ lease to a single occupier at £9/sqft NIA. Achieves stabilised NOI £72,600 and supports MV1 £570,000 on which refinance becomes possible at month 12-18.

Max purchase: £155,000 (lower) to £220,000 (upper). Key risk: single-tenant void at this scale in weak-secondary location; tenant search may exceed 18 months.

Subdivision into conventional 2-3 unit multi-tenanted commercialModerate

Subdivide the 9,855 sqft floorplate into 2-3 separate units (e.g. 2,500-4,000 sqft each) and let on conventional 3-5 year leases. Reduces single-tenant void exposure; partition work captured within the Standard refurb budget if layout already partially cellular. Subdivision premium adds £1-2/sqft NIA over single-let rate.

Max purchase: £165,000 (lower) to £230,000 (upper) at 5% NOI uplift. Key risk: capex for partitioning, separate metering, fire compartmentation may push refurb to £60-65/sqft.

Multi-let (managed flexible workspace)Weak

Multi-let managed workspace at licence rates of £20-40/sqft (3-4× conventional) is not assessed. Springburn / north Glasgow G21 is not in the PropLens multi-let coverage area (covered Glasgow neighbourhoods: Shawlands, Dennistoun, Partick, Finnieston). Demand density for licence-based occupiers in weak-secondary north Glasgow is unverified; entry-level operator risk is concentrated.

Max purchase: Not calculated (location outside coverage). Key risk: Building occupancy from zero in an unproven sub-market.

Change of use to residential (Class 9 / Class 7 HMO)Weak

Conversion to residential flats (Class 9) at £125/sqft full commercial-to-residential rate produces total works cost ≈ £1,047,125, which when added to land cost pushes the residual purchase price into negative territory at any realistic resi sale £/sqft for north Glasgow (Springburn resi typically £140-180/sqft). Glasgow city Local Development Plan does not specifically prohibit commercial-to-resi in this corridor but planning risk is material. Not viable on the numbers.

Max purchase: Negative at standard conversion cost. Key risk: Planning consent uncertainty plus conversion cost overrun.

Vendor finance / lease-with-optionModerate

Liquidator-driven sales sometimes accept structured terms that reduce upfront capital. A lease-with-option-to-purchase at the asking price, with a holding rent during the refurb and lease-up phase, defers the equity commitment until stabilised income is proven. The vendor (joint liquidators) is unlikely to accept this structure given the fiduciary duty to realise capital for creditors, but the structure remains a fallback for negotiation.

Max purchase: Asking £250,000 if structured as deferred consideration. Key risk: Liquidators typically reject; the fiduciary obligation favours cash completion.

Holding structure

The property is specialist commercial with vacant possession, SSAS-eligible (no residential component). A standalone SSAS acquisition at 50% LTV (range £105,000 to £185,000) compounds rental income and capital gains tax-free within the scheme. A PropCo/OpCo structure (Company holds the freehold; trading subsidiary operates the building) is the alternative when an active multi-let strategy is in scope; given multi-let is not viable in this sub-market, the simpler SSAS or SPV freehold hold is appropriate. At the £155k-£220k methodology range the SSAS equity requirement is materially higher (£249k-£332k vs £215k-£286k SPV) which is the trade-off for tax shelter.

Refinance scenario (month 18 post-completion)

Line	At £220,000 purchase
All-in cost (purchase × 1.07 + refurb)	£655,400
Stabilised MV1 (NOI / ARY)	£570,000
Refinance loan @ 65% LTV of new MV1	£370,500
Equity recycled (refi proceeds − initial loan)	£0
Equity remaining in deal	£284,900

Refinance assumes 12 months proven trading and specialist lender appetite at 65% LTV. Equity remaining in deal of £284,900 is the long-term capital tied up post-recycle, against stabilised NOI £72,600 = 25.5% cash-on-cash on residual equity.

IRR sensitivity (development hold-intent)

3×3 sensitivity on purchase price (rows) and stabilised rent (columns). 5-year hold, 8% interest, 65% LTV, 7% purchaser costs, £50/sqft refurb fixed.

Purchase	Rent £63,750 pa	Rent £75,000 pa (base)	Rent £86,250 pa
£155,000	12-15%	18-22%	25-30%
£220,000	5-8%	12-15%	18-22%
£250,000	negative	3-6%	10-14%

IRR ranges illustrative; assumes refinance at 12-18 months post-stabilisation at 65% LTV against new MV1. Asking-price row reflects that the asking compresses returns to break-even or below at base-case rent.

Sources

LoopNet listing: 130 Springburn Rd, Glasgow
Ryden 90th Scottish Property Review 2025 (Glasgow office yields, vacancy)
Knight Frank Scotland Report 2025 (Glasgow prime rents)
Revenue Scotland: LBTT non-residential bands
Edozo Insight office lease comparables 2026-03-25

Jurisdiction

Scotland