PropLens · 200 Bath Street, Glasgow, G2 4HG

Offer range · Operational reposition

£355,000

£425,000

Lower end · 20% Upper end · 15%

Asking £525,000 sits 23.5% above the upper end (£425,000).

Income basis Income basis: actual rent roll less estimated landlord costs (insurance £2,400, management 10%, voids/repairs 5%).

£69,389 − £12,808 → NOI £56,581

Offer explorer

Your offer

£425,000

Equity required

£0

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

Cash-on-cash

DSCR @ 8%

4.35×

Same at any price

Net cash flow

£43,581

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 4.35× Strong

Stress DSCR @ 10% rate 3.48× Strong

Debt Yield (NOI / Loan) 34.8% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £56,581 · VP £250,000 (lender basis)

Thesis

200 Bath Street is a fully tenanted three-floor multi-let on the Bath Street office belt in central Glasgow (G2). Nine occupiers across ten units produce £69,389 pa gross rent, capitalising at 10.8% net initial yield at asking. The income is non-conventional (small-business licence-style occupancy, no disclosed leases of substance), which sets the lender lens to VP rather than T&R. The deal type is operational reposition: the upside is rent regear and lease formalisation against the existing rent roll, not capex-driven repositioning.

What's wrong with it

Lease structure is not disclosed; year-to-year occupancy implies short WAULTC, which restricts conventional-lender appetite even at the existing rent roll.
Asking £525,000 prices the building close to MV1 (going-concern value with proven income), leaving little margin for VP-based lender underwriting.
Multi-let small-business tenant mix (creative / personal services / sole traders) carries higher churn than a single covenant let, meaning gross-to-net deductions need to remain conservative.

What's right with it

Prime Glasgow city centre address (G2 — Bath Street office belt, short walk to Glasgow Central Station) supports a deep tenant pool and standard high-street legal/agency.
Fully occupied with nine paying tenants and £69,389 pa in place — the operational model is already proven, removing the lease-up risk that typically sits in a multi-let conversion.
Tenant mix spans Class 1A retail, Class 4 office and creative uses — the bulk of the rent roll is SSAS-eligible commercial, opening a 50% LTV pension-purchase route alongside the conventional 65% LTV path.

Risks

Tenant covenant is small-business / sole-trader across nine occupiers; any single failure has limited individual impact, but turnover is structurally high under licence-based occupancy.
Lease terms not disclosed — if all occupiers are on rolling year-to-year contracts or licences, WAULTC is short and lender appetite tightens.
Gross-to-net assumed at ~18% landlord costs; actual service-charge recovery, business rates liability and bad-debt history not yet verified.

DD gaps

Full tenancy schedule: per-unit rent, term, break dates, service-charge basis, who pays utilities and rates.
EPC certificate per let unit (commercial MEES floor is EPC E from April 2027 in Scotland).
Building survey on a 3-floor city centre property of unspecified age — fire compartmentation between units, M&E condition, roof.

Considerations

Mixed-use tenant profile spans Class 1A (retail / personal services), Class 4 (office), and creative uses — SSAS-eligible for the bulk of the rent roll but tattoo studio may require classification check.
Listed-building status not stated; Bath Street contains a high proportion of Cat B / C(S) listed buildings, verify via Historic Environment Scotland register.
Asking price £525,000 crosses the £500k LBTT 5% band threshold; tax efficiency drops sharply against secondary commercial yield expectations.

SSAS variant (50% LTV pension purchase)

Property comprises a mixed-use commercial rent roll where the majority of occupier classes are SSAS-eligible (Class 4 office, Class 1A personal services). On a 50% LTV pension-purchase route, the same 20% / 15% cash-on-cash hurdles produce a range of £335,000 – £405,000. The lower LTV widens the equity requirement; the offset is 0% tax on rental income within the pension wrapper and exemption from CGT on disposal. Tenant classification of the tattoo studio should be confirmed before relying on full SSAS eligibility.

Property & Valuation

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

Facts

Address	200 Bath Street, Glasgow, G2 4HG
Asking	£525,000
Property type	Commercial (multi-let)
Size (stated)	3,666 sqft (treated as GIA)
Size (NIA est.)	3,116 sqft (GIA × 0.85)
£/sqft (asking)	£143/sqft (GIA)
Floors	3
Units	10 units, 9 occupiers
Parking	2 spaces
Gross rent	£69,389 pa (£5,782/mo)
Tenant mix	Music studio, tattoo, fashion designer, hairdresser, PT, card design, animation, collectors club, counselling
Tenure	Not stated
EPC	Not stated
RV	Not stated
Listing	https://www.rightmove.co.uk/properties/87402336
Portal	Rightmove

Photos

Physical assessment

Exterior: Bath Street is a 19th-century stone-built office terrace; standard category for the street is Victorian/Edwardian masonry with sash windows. Single hero photo shows the building front from across the road.
Layout: Three floors divided into ten lettable units — by occupier mix (offices, studios, salon) this is a cellular layout, which is structurally consistent with the multi-let operating model.
Access: Two car park spaces are unusual and valuable in central Glasgow. Bath Street is a one-way eastbound corridor with on-street paid parking elsewhere.
Condition rating: Fair (default — listing text contains no refurbishment or disrepair markers).
Surroundings: Prime G2 office belt, short walk to Glasgow Central and Buchanan Street retail. Surrounding occupier mix is professional services and creative.
EPC inference: Older stone-built city-centre stock typically reaches EPC D–E without intervention. Verify before April 2027 MEES E-rating deadline for non-domestic leases.

Per-unit income

Item	Amount	Basis
Gross rent (current)	£69,389	Listing: 9 occupiers, £5,782/mo
less: Insurance (multi-let)	(£2,400)	Estimate, 3-floor city building
less: Management (10%)	(£6,939)	Multi-let agent default
less: Voids and repairs (5%)	(£3,469)	Multi-let allowance
NOI	£56,581	Income basis declaration
Conventional lease ERV (reference only)	£32,718	3,116 sqft NIA × £10.50/sqft (Fair condition)

Per-unit rent schedule not disclosed in the listing. The income basis treats the rent roll as a single non-conventional stream. The actual gross of £69,389 runs at ~2.1× the conventional Glasgow ERV — the multi-let operating premium is real but already in the price.

Yield selection

Glasgow city centre office tier, secondary band (Bath Street is good CBD, not the Blythswood prime core). Base yield 9.0–10.0% per PropLens market data; midpoint 9.5%. Lot-size adjustment +175 bps for sub-£500k (the methodology range lands sub-£500k). Multi-let, covenant and WAULTC adjustments are not applied separately — those risks are captured in the condition-linked void and rent-free deductions on VP.

Component	Value	Source
Base ARY (Glasgow city centre secondary)	9.5%	PropLens yield selection, Ryden 2025 evidence
Lot-size adjustment (sub-£500k)	+175 bps	PropLens methodology (deterministic)
Selected ARY	11.25%
Term yield	10.5%	ARY − 75 bps
Reversion yield	11.25%	= ARY

Sensitivity on MV1: at 10.75% ARY, MV1 = £525,000; at 11.75% ARY, MV1 = £480,000. A 50 bps swing moves stabilised value by ~£20k.

Valuation stack

Basis	Method	Value
Rack Rent (gross ceiling)	ERV £32,718 / 11.25% ARY	£290,000
VP (MV3 — empty shell)	Conventional ERV less void, RF, fees, holding	£250,000
MV2 (day-1 trading)	Gross × 70% occupancy / 70% margin / ARY + 150 bps	£265,000
MV1 (stabilised, going concern)	NOI £56,581 / 11.25% ARY	£505,000
180-day restricted marketing	MV1 × 0.90	£455,000
90-day restricted marketing	MV1 × 0.80	£405,000
Asking	Vendor's price (Rightmove, May 2026)	£525,000

Lender basis selected: VP £250,000. Non-conventional income (year-to-year licence-style multi-let) routes the lender lens off vacant-possession ERV, not the stabilised NOI. MV1 £505,000 represents going-concern value with 12+ months of trading evidence; specialist lenders may underwrite to MV1 at 50–65% LTV with full accounts, which the deal sheet does not assume.

Acquisition benchmark

Glasgow CBD asking £/sqft: £143 per stated GIA. Glasgow city-centre commercial benchmarks in PropLens market data sit at £15/sqft conventional lease × 7.5–8.5% prime yield = £175–200/sqft indicative CV for prime stock in reasonable condition. Asking £143/sqft is below that headline range, but the secondary-tier yield assumption applied here (11.25% post-lot-size) is the controlling input, not the per-sqft figure. The two reconcile because the secondary yield reflects the multi-let licence income profile, not the prime single-let benchmark the £/sqft table is built on.

Purchase costs

Cost item	At upper end (£425,000)
LBTT (Scotland, non-residential)	£9,750
Legal fees	£4,500
Disbursements	£650
Broker fee (1%)	£4,250
Lender arrangement (2% of loan £162,500)	£3,250
Lender legal	£2,500
Surveys / DD	£2,000
Total purchase costs	£26,900
All-in acquisition cost	£451,900

LBTT bands: 0% to £150k, 1% £150k–£250k, 5% above £250k. The 5% band threshold creates a step in tax efficiency: a £525k purchase carries £14,750 LBTT versus £9,750 at the upper end of the methodology range.

Strategy & Appraisal

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

Value-add angles

1. Lease formalisation and rent regear Strong

The dominant angle. Existing nine occupiers are paying £69,389 pa gross, but lease structure is undisclosed — likely year-to-year or licence. Replacing these with three-to-five year FRI leases (where the use class supports it) converts the income from non-conventional to conventional, opening T&R underwriting and a higher lender basis value. Even without rent uplift, the basis switch alone moves the lender from VP £250,000 to a T&R figure that capitalises term income at term yield (10.5%).

Financial impact: If half the rent roll converts to 3-year FRI at current passing rents, lender basis approaches MV1 £505,000; 65% LTV on that basis is £328,250 loan capacity — a ~£165k uplift vs the VP-based £162,500 loan modelled here.

Key risk: Tenants on short-form occupancy may refuse formalisation, especially personal-services occupiers used to month-to-month flexibility. Vacancy risk during regear.

2. Rent review to ERV Moderate

Conventional Glasgow CBD office ERV at 10.5/sqft (Fair condition adjustment from £12.35 median) produces £32,718 pa across the NIA. Actual gross is £69,389 — the existing multi-let model is achieving ~2.1× conventional rent. There is no obvious gap to close on a per-sqft basis. Rent review at the next anniversary against the multi-let achieved rate (not conventional ERV) is where the upside sits, and that depends on individual occupier renewals.

Financial impact: A 5% uplift across the rent roll = £3,469 pa, capitalising at ARY to ~£25,000 additional MV1.

Key risk: The existing rents may already be at or above the local multi-let achievable rate; downward adjustment cannot be ruled out without comparable evidence.

3. SSAS / pension purchase Moderate

The bulk of the rent roll (Class 4 office, Class 1A personal services) is SSAS-eligible. Pension purchase at 50% LTV provides 0% tax on rental income and capital gains within the wrapper, against the cost of a tighter loan and the operational constraints of pension administration. SSAS-route range: £335,000 – £405,000.

Financial impact: At £405,000 upper, 15% c-on-c on equity £310,540, post-tax cash flow £46,581 pre-tax (= post-tax inside pension).

Key risk: Tattoo studio classification under SSAS-permitted-investment rules requires confirmation; if non-eligible, that unit must be ringfenced and may force a PropCo/OpCo structure.

4. Floor-by-floor subdivision sale Weak

Three-floor property could in theory be sold as separate commercial titles per floor, but the multi-let operating model relies on shared circulation, services and ground-floor frontage. Disaggregating would destroy the operational asset and the unit-level rents are too small to support standalone commercial-mortgage funding for end-purchasers. Pursue only as a fallback exit if the income hold breaks down.

Financial impact: Not quantified at this stage; requires title investigation and per-floor income allocation.

Key risk: Loss of the rent-roll premium and disruption to sitting tenants.

Holding structure

The deal sheet supports two routes. Commercial mortgage in an SPV at 65% LTV against VP £250,000 produces the headline range £355,000 – £425,000; this fits a higher-rate-taxpayer hold with active management. SSAS pension purchase at 50% LTV against the same lender basis produces £335,000 – £405,000 with 0% tax on rents and gains inside the wrapper, suitable for an investor with sufficient pension assets and a long hold horizon. A PropCo/OpCo split (company freehold + pension lease, or vice versa) is worth modelling once tenant classifications are confirmed and lease formalisation (angle 1) is progressed.

Sources

Listing: https://www.rightmove.co.uk/properties/87402336 (Rightmove, captured 11 May 2026)
Ryden 90th Scottish Property Review 2025 — Glasgow city centre office yield evidence
Knight Frank Scotland Report 2025 — secondary office market commentary
Revenue Scotland — LBTT non-residential bands
PropLens market data — Glasgow office £/sqft and yield benchmarks (March 2026)

Jurisdiction

Scotland