PropLens · 33 Portman Street, Kinning Park, Glasgow, G41 1EJ

Offer range · Income hold (vacant, let to single industrial occupier)

£160,000

£180,000

Lower end · 20% Upper end · 15%

Offers Over £225,000 sits c. 25.0% above the upper end of the conventional-finance investor range. Asking implies a c. 9.3% net initial yield against a Glasgow secondary industrial benchmark of 9-11%, suggesting an owner-occupier bid rather than an investor's required return.

Income basis ERV from comparables — vacant on marketing. Year 1 effective cash-on-cash will be lower depending on lease-up speed.

Gross ERV £22,850 − Landlord costs £1,850 → NOI £21,000

Offer explorer

Your offer

£180,000

Equity required

£0

Lender lends £113,750 against VP £175,000

Cash-on-cash

DSCR @ 8%

2.31×

Same at any price

Net cash flow

£11,900

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 2.31× Strong

Stress DSCR @ 10% rate 1.85× Strong

Debt Yield (NOI / Loan) 18.5% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £21,000 · VP £175,000 (lender basis)

Thesis

Mid-terraced steel portal frame industrial unit on Portman Street, Kinning Park, c. one mile south-west of Glasgow city centre. The building offers 4,518 sqft GIA (c. 3,840 sqft NIA) on a freehold basis, with 4m eaves, mezzanine storage, first-floor office accommodation, mains gas, and three-phase power. The unit is marketed vacant by G M Brown, the same agent handling 42 Portman Street next door (asking £425,000, 6,475 sqft). At a Glasgow secondary industrial yield of 9.25% ARY, after the standard 12-month void, 6-month rent-free, and reletting deductions for a Fair-condition vacant building, VP supports a conventional-finance investor range of £160,000-£180,000. Asking £225,000 sits c. 25.0% above the upper end, reflecting an owner-occupier bid (capital displacement from rent) rather than an investor's required yield.

What's wrong with it

Vacant on marketing: year-1 income depends on a 6-12 month letting void plus tenant rent-free incentive.
Mid-terraced configuration limits expansion or yard-side reconfiguration; the unit is what it is.
EPC not stated, and MEES tightening through 2027-2030 in Scotland may require capex before lawful commercial let.

What's right with it

Strong industrial micro-location: M8 (Junctions 21-23) within five minutes, Shields Road and Kinning Park subway within walking distance.
Functional industrial spec: 4m eaves, mezzanine, first-floor office, mains gas and three-phase power, WCs in place.
Vacancy gives a clean rent-roll restart, allowing immediate let to a single FRI occupier on current market terms.

Risks

Letting void of 6-12 months in Glasgow secondary industrial; income lost during void.
Owner-occupier comparable transactions (£60-75/sqft GIA) drive seller expectations above investor pricing.
Mezzanine and first-floor office could be a depreciating element if tenant demand is for clear-span warehouse only.

DD gaps

EPC rating: not stated; required for letting and for MEES compliance check.
Rateable value and rates liability during void (Scottish empty-property relief: 50% for six months, 90% for the next six).
Building survey for roof, steel frame condition, and asbestos check on a 1970s/80s portal frame structure.

Considerations

Class 6 industrial is SSAS-eligible; the SSAS variant compresses the range due to 50% LTV cap.
VAT election status of the seller affects purchaser's costs; check whether VAT is opted on the title.
Kinning Park is part of the Glasgow City Centre Strategy regeneration footprint; longer-term capital value uplift is plausible.

SSAS variant at 50% LTV: £145,000 to £170,000. Class 6 industrial is SSAS-eligible; tax-free income and capital growth within scheme suits a long-hold view, accepting the lower leverage cap.

Property & Valuation

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

Facts

Address	33 Portman Street, Kinning Park, Glasgow, G41 1EJ
Asking	Offers Over £225,000
Property type	Industrial (mid-terraced steel portal frame, pitched profile-sheet roof)
Stated size	4,518 sqft (treated as GIA per industrial convention)
NIA (estimated)	c. 3,840 sqft (GIA × 0.85)
Tenure	Heritable (Freehold)
Eaves height	4m (per listing)
Internal	Open-plan GF, mezzanine store, first-floor office, WCs
Services	Mains gas, three-phase power
Access	Vehicular and pedestrian access via Portman Street frontage
Tenancy	Vacant on marketing
Agent	G M Brown Property Consultants Ltd, Glasgow
Listing	Rightmove

Photos

Physical assessment

Exterior: steel portal frame mid-terrace clad in profiled sheeting, pitched roof, pedestrian and vehicular access from Portman Street frontage.
Interior: open-plan ground floor at 4m eaves, mezzanine store, first-floor office accommodation, WCs.
M&E: mains gas, three-phase power; specification typical of secondary Glasgow industrial vintage.
Access and parking: front access only; no yard mentioned (contrast 42 Portman next door which has a side yard).
Surroundings: established light-industrial street with mixed occupiers (motor trade, distribution, charity, leisure); typical inner south-west Glasgow industrial belt.
EPC not stated; condition Fair by default (no refurbishment language in listing text).

Per-unit income

Component	£/sqft	Sqft (NIA)	£ pa
ERV (Glasgow secondary industrial, Fair × 0.85 of £7 base)	£5.95	3,840	£22,850
Less: landlord costs (insurance, minor mgmt on FRI)			(£1,850)
Stabilised NOI			£21,000

Industrial single-let FRI: tenant pays rates, repairs, insurance, utilities. NOI ≈ gross rent less reserved landlord protections.

Yield selection

Step	Adjustment	Result
Base ARY (Central Belt industrial secondary)	Midpoint of 7-8%	7.5%
Sub-£500k lot-size premium	+175 bps (hardcoded)	9.25%
Final ARY	Rounded to nearest 25 bps	9.25%
Term yield	ARY - 75 bps	8.50%

Sensitivity (NOI £21,000): at 8.75% = £240,000; at 9.25% = £227,027; at 9.75% = £215,385 (rack rent before VP deductions).

Valuation stack

Basis	Workings	Result
Rack Rent (gross perpetuity, no deductions)	£21,000 / 9.25%	£227,027
VP (vacant, lender basis)	Rack less 12mo void, 6mo rent-free, 10% reletting, holding costs	£175,000
90-day restricted marketing	VP × 0.80	£140,000
180-day restricted marketing	VP × 0.90	£157,500
Asking	Offers Over £225,000	£225,000

VP is the lender basis for a vacant non-conventional asset. T&R is not calculated (no lease in place). MV1/MV2 multi-let basis is not applicable (single-let industrial, not service-occupier model).

Acquisition benchmark

Kinning Park is not in the per-location acquisition-benchmark table. Generic Glasgow secondary industrial: capital values £60-90/sqft GIA, yields 8.5-10%. Asking £225,000 (c. £50/sqft GIA) sits within the owner-occupier band; the upper end of the investor range (£180,000) is c. £40/sqft GIA, reflecting void/rent-free deductions on a fully vacant building.

Purchase costs

Cost item	Basis	£
LBTT (non-residential)	Banded on £180,000	£300
Legal fees	Standard	£4,500
Disbursements	Searches, registrations	£650
Broker fee	1% of purchase	£1,800
Lender arrangement fee	2% of 65% LTV loan	£2,340
Lender legal fees	Standard	£2,500
Surveys / DD	Building survey + valuation	£2,000
Total purchase costs	c. 7.8% of purchase	£14,090

Strategy & Appraisal

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

Value-add angles

1. Single-let to a Glasgow industrial occupier (Strong)

Standard route. ERV £5.95/sqft × 3,840 NIA = £22,850 pa on an FRI lease. Comparable secondary industrial in Kinning Park, Govan, and Tradeston achieves £5-8/sqft for older stock with vehicle access. Maximum purchase at investor range: £160,000-£180,000. Key risk: 6-12 month letting void plus rent-free incentive.

2. Sale to owner-occupier (asking-price thesis) (Moderate)

Owner-occupiers (motor trade, joinery, food prep, distribution SMEs) typically pay 15-30% above investment value because the alternative is paying rent. Comparable owner-occupier transactions in inner Glasgow industrial 2024-25 have closed at c. £60-75/sqft GIA. Asking £225,000 (c. £50/sqft GIA) sits in this range; the seller is pricing for that buyer pool, not an investor.

3. Subdivision into 2 trade-counter units (Weak)

The mezzanine and first-floor office indicate the building already has some internal subdivision. Splitting GF into two trade-counter units (c. 2,000 sqft each) could lift £/sqft achieved to £8-10/sqft. Conversion cost c. £75k-£100k for partition wall, separate metering, additional roller door. Sensitivity: only worth pursuing if the single-let market softens; not the default route for a clean industrial box.

4. SSAS hold (Strong as structure)

Class 6 industrial is SSAS-eligible. At 50% LTV the SSAS variant supports £145,000-£170,000. Tax-free income and capital growth within scheme. Best suited to a buyer with existing SSAS capacity and a long-hold view, accepting the lower leverage cap.

Holding structure

Personal or Company (SPV) for a leveraged investment hold at conventional finance. SSAS or PropCo/OpCo if the buyer already has scheme assets and wants tax-free rental income on Class 6 industrial. The 50% SSAS LTV cap compresses the range to £145,000-£170,000, so SSAS is the cleaner structure only when the buyer can pay closer to the range without straining liquidity.

Sources

Ryden 90th Scottish Property Review (2025): industrial yields and transaction evidence for Glasgow.
Knight Frank Scotland Report (2025): Glasgow industrial market context.
Edozo Insight portal data (2026): asking-rent comparables for Glasgow secondary industrial.
Revenue Scotland: LBTT non-residential bands (frozen through 2026-27 Scottish Budget).
Scottish Government: non-domestic rates relief on empty properties.
PropLens internal sister analysis: 42 Portman Street, Kinning Park (same agent, neighbouring unit), 2026-05-10.

Jurisdiction

Scotland (LBTT regime; postcode area G).