PropLens · 42 Portman Street, Kinning Park, Glasgow, G41 1EJ

Offer range · Development (hold-intent)

Offers over £425,000

Asking (OO)

Step down −£215,000 · −50.6% to reach 15% cash-on-cash

£210,000

TargetUpper end · 15% c-on-c hurdle

vs asking

−50.6%

Step down −£30,000 · − to reach 20% cash-on-cash floor

£180,000

Lower end · 20% c-on-c floor

vs asking

−57.6%

Range £180,000 – £210,000 Bid band · vendor reset territory

Sanity flags

At asking £425,000 the price sits 50.6% above the methodology upper end. A vendor reset adjustment from the vendor is needed to land within the lender-supported range.
At asking £425,000 yield on total cost drops to 6.4%, below the 9% lenders typically look for on secondary commercial. A standard 65% LTV bridge becomes harder to place at this level.

Stabilised income

£36,000/ yr NOI

£36,000 ERV − op. costs → NOI

Vacant. NOI derived from methodology ERV (Glasgow/West industrial average × Fair-condition factor), capitalised at ARY 9.25%.

Cost to stabilise

£110,080one-off refurb

£20/sqft light industrial shell × 5,504 NIA

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

Offer explorer

Your offer

£210,000

Equity required

£0

Lender lends £208,000 against VP £320,000

Cash-on-cash

DSCR @ 8%

2.16×

Same at any price

Net cash flow

£19,360

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 2.16× Strong

Stress DSCR @ 10% rate 1.73× Strong

Debt Yield (NOI / Loan) 17.3% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £36,000 · VP £320,000 (lender basis) · Refurb-to-let £110,080 (£20/sqft light industrial shell × 5,504 NIA)

Thesis

Mid-sized industrial unit in Kinning Park, Glasgow, marketed at £425,000 with vacant possession. Steel portal frame, 6,475 sqft, side yard, mains gas plus 3-phase power. The location is functional — Glasgow inner south, M8 access, surrounded by working industrial occupiers and walkable to Shields Road subway.

The investor lens prices the asset off the ERV the methodology supports (£6.54/sqft × 5,504 sqft = £36,000 NOI), capitalised at the Glasgow industrial secondary ARY (9.25%) and stress-tested for a 12-month lease-up plus £110,080 refurb-to-let spend. That math lands the supportable price at £180,000–£210,000, well below asking.

The gap is real. Vendor is targeting owner-occupier money (the brochure says so explicitly), where the rental-saving calculus pays for the asking. An investor competing in the same auction needs either materially better rent assumptions (trade-counter £14+/sqft, not £7.69), a faster lease-up than 12 months, or a structural angle (SSAS) to bridge the gap.

What's wrong with it

Vacant with no disclosed letting interest or pre-let. Glasgow West industrial vacancy is low (3.1% — Ryden) so a let is achievable, but lease-up timing drives the year-1 cash flow.
EPC band withheld in the brochure. For a steel portal frame with limited insulation that's a yellow flag — MEES requires EPC E for new commercial lettings.
Refurb is mandatory before letting (no tenant in situ), and adds £110,080 to the all-in cost before any return is earned.

What's right with it

Functional Glasgow inner-south location with proven industrial demand. M8 / M74 / M77 access plus subway makes the site letable to a wide tenant pool.
Single-let trade tenant relet is a simple, well-understood play. No change of use, no planning, no operator complexity.
SSAS-eligible commercial. For an investor with pension capacity the tax shelter improves the after-tax IRR materially.

Risks

Lease-up speed and rent achieved drive the residual valuation. A 12-month void at the methodology rent underwrites the range; longer voids or weaker rents push the residual down.
Construction-quality risk on the lean-to extension (structural separation, condensation, fire compartmentation). A building survey before exchange is mandatory.
Vacant industrial empty rates accrue from month 4. £9,058 over the 9-month payable window if let promptly; double that if marketing drags.

DD gaps

EPC band — withheld in the brochure. Verify on register and price any remediation into the refurb budget.
Asbestos register / R&D survey on a pre-2000 portal-frame building. Standard requirement before any refurb works.
Title plan, servitudes, and any planning conditions attached to the lean-to extension. Search Scotland's Land Register and check Glasgow City Council planning portal.

Considerations

Asking sits 50.6% above the methodology upper end. Vendor is targeting owner-occupier capital where the rental-saving calculus changes the price. The investor lens does not support the asking.
Glasgow industrial occupier rents have grown 43% in five years (Ryden 2025); the methodology uses the current average and does not extrapolate.
Sub-£500k lot. Below institutional cut-off, so the buyer pool is local investor, SSAS, or owner-occupier rather than fund.

SSAS variant (50% LTV)

If transacted via SSAS at 50% LTV instead of conventional 65%, the range adjusts to £155,000 – £190,000. Loan £160,000, debt service £12,800, net cash flow £23,200. Note: SSAS rules require commercial use; if the asset is converted away from commercial, it must exit the wrapper.

Quick facts

Asking: £425,000 (OO)
NIA: 5,504 sqft
GIA: 6,475 sqft
£/sqft asking (GIA): £66
Tenure: Heritable (Scottish freehold)
Condition: Fair
RV: £24,250
Annual rates: £12,077
Lease: Vacant possession
VAT: Not applicable
EPC: Upon enquiry
Portal: Rightmove
Agents: G M Brown Property Consultants

Headline numbers

Range: £180,000 – £210,000
Discount to upper: −50.6%
NOI (ERV): £36,000
Refurb to let: £110,080
All-in @ upper: £334,780
DSCR @ 8%: 2.16×
VP (lender basis): £320,000
Rack rent value: £390,000

Property & Valuation

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

Facts

Address	42 Portman Street, Kinning Park, Glasgow, G41 1EJ
Asking	Offers over £425,000 (£65.64/sqft GIA, £77/sqft NIA)
Property type	Industrial — mid-terraced portal frame
GIA (stated)	6,475 sqft
NIA (×0.85 of stated)	5,504 sqft
Eaves	3.0m rising to 5.2m at pitch
Construction	Steel portal frame, mid-terraced; lean-to office/welfare
Access	Full-height vehicle door, side yard / parking, pedestrian access
Services	Mains gas, 3-phase power
Tenure	Heritable (Scottish freehold)
Tenancy	Vacant
Rateable Value	£24,250
Annual rates payable	£12,077 (UBR 0.498)
VAT	Not applicable
EPC	Upon enquiry (not disclosed)
Agents	G M Brown Property Consultants, Glasgow — Gregor Brown / Kerrie Currie
Portal	Rightmove — listing

Photos

Physical assessment

Exterior: mid-terraced industrial, steel portal frame. Roller-shutter vehicle door direct off Portman Street. Side yard provides off-street parking and pedestrian access.
Interior: open-plan warehouse to the main shed; lean-to extension housing office and staff welfare. Internal eaves clear 3m, rising to 5.2m at the apex — workable for racking, light manufacturing, vehicle storage.
Layout efficiency: single-tenant open span, minimal dead space. Single vehicle access constrains larger logistics operators but suits trade / workshop / storage users.
Services: mains gas and 3-phase power confirmed. No mention of fire suppression or office-grade M&E in the warehouse area.
Visible issues: EPC withheld. Lean-to extension is an addition and may warrant a closer look at structural separation and fire compartmentation. No photos supplied of the internal roof or columns.
Location: Kinning Park sits between Paisley Road West and the M8 (J20/21). Mixed light industrial / motor trade neighbours (Portman Motors, Sense Scotland). Walkable to Shields Road and Kinning Park subway. Functioning industrial pocket, not in decline.
Condition rating: Fair — brochure says "well-presented" but does not declare a recent refurbishment, so the methodology defaults the rating.

Per-unit income

Component	Figure	Note
Stabilised ERV	£36,000	5,504 NIA × £6.54/sqft (Glasgow/West industrial £7.69 avg per Ryden 2025 × 0.85 condition)
Landlord costs	£0	Single-let FRI assumed (industrial standard)
NOI	£36,000	Stabilised, post-lease-up

Vacant possession at sale. NOI reflects ERV achievable after refurb and lease-up. Year 1 cash-on-cash will be materially lower depending on letting speed.

Yield selection

Step	Reasoning
Sector	Industrial — mid-terraced steel portal frame, single unit
Location tier	Glasgow Central Belt, Kinning Park (close to city, M8 J20/21). Industrial secondary band per Ryden 2025: 6–8% prime, 7–8% secondary.
Base ARY	Midpoint of Glasgow secondary band = 7.5%
Lot-size adjustment	+175 bps for sub-£500k lot
Selected ARY	9.25% (rounded to nearest 25 bps)

Sensitivity: at 8.50% ARY, capitalised rack rent = £423,529. At 10.0% ARY = £360,000. The selected yield reflects (a) Kinning Park's secondary positioning relative to Glasgow prime (Belgrave Logistics, Cambuslang) and (b) the lot-size friction below institutional cut-off.

Valuation stack

Basis	Value	Calculation
VP (MV3) — vacant, secondary tier	£320,000	£36,000 / 9.25% less 12mo void (£36,000), 6mo rent-free (£18,000), reletting (£3,600), empty rates (£9,058), holding costs (£4,200)
Rack rent (gross ceiling)	£390,000	£36,000 / 9.25% capitalised. Theoretical ceiling assuming stabilised income and zero void.
Asking	£425,000	OO. £65.64/sqft GIA. Sits 50.6% above VP and 9.0% above rack rent value.
Gap (rack rent − VP)	£70,000	Value created by filling void and achieving market rent.

T&R not shown — property is 100% vacant. MV1/MV2 not shown — no conversion or operator play. ARY 9.25% = Glasgow industrial secondary midpoint 7.5% + 175 bps sub-£500k lot-size adjustment per yield-selection-guide.

Acquisition benchmark

Kinning Park is not separately listed in the Glasgow location benchmarks. Closest comparable sub-markets are Shawlands and Dennistoun (Glasgow secondary, CV £140–200/sqft). Kinning Park sits one mile from the city centre, with strong motorway access and an established light-industrial / motor-trade character — broadly equivalent to Dennistoun in pricing terms.

Asking £65.64/sqft GIA sits within the Glasgow secondary industrial CV range (£50–100/sqft typical for secondary stock, with prime estates at £100+). The asking is not absurd in capital-value terms, but the investor lens requires the lease-up risk and refurb spend to be paid for, which compresses the supportable price relative to the asking.

Vacant possession plus £110,080 capex + 12-month void plus c. £9,058 empty rates is the gap the investor is bridging. The owner-occupier view is different because they capture the rental saving.

Purchase costs

Cost	At upper end (£210,000)	At asking (£425,000)
LBTT (non-residential, Scotland)	£600	£9,750
Legal fees	£4,500	£4,500
Disbursements	£650	£650
Broker fee (1%)	£2,100	£4,250
Lender arrangement (2% × 65% LTV)	£2,730	£5,525
Lender legal	£2,500	£2,500
Surveys	£2,000	£2,000
Subtotal purchase costs	£15,080	£29,175
Refurb to let (5,504 sqft × £20)	£110,080	£110,080
Empty rates during void (9mo)	£9,058	£9,058
All-in (price + costs + refurb + void rates)	£344,218	£573,313

Industrial property in Scotland: no industrial-specific empty-rates extension (England gives 6 months; Scotland gives the standard 3-month commercial exemption). Empty rates accrue from month 4 onwards while vacant.

Strategy & Appraisal

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

Value-add angles

1. Single-let trade tenant relet Moderate

Refurbish the shell (roller-shutter service, WC compliance, repaint, lighting) at light-industrial cost £20/sqft = £110,080, then let to a trade occupier at ERV £36,000 (£6.54/sqft). Stabilised value at 9.25% ARY = £390,000.

Max purchase (15% c-on-c): £210,000. Key risk: lease-up speed in a market where Glasgow average industrial rents (£7.69 psf) sit well below trade-counter rents (£14+) — the rent achieved will determine whether the residual at refinance covers cost plus equity.

2. Owner-occupier resale (vendor's stated audience) Strong (for owner-occupier; not investor)

The listing positions the property as an "owner-occupier / investment opportunity" at £425k. For an owner-occupier paying rates and operating from the site, the implied annual cost of capital is competitive vs renting equivalent space at £36k+. Investor lens does not support the asking; owner-occupier lens may.

Max purchase (owner-occupier): not modelled by this methodology. The investor range £180,000–£210,000 reflects the price an investor can pay and still hit a 15–20% cash-on-cash hurdle on the ERV.

3. Multi-let subdivision (trade workshops / storage pods) Weak

Subdividing the 6,475 sqft shed into 4–6 trade-counter / workshop units could lift the £/sqft rent meaningfully (£14+ vs £7.69). However the methodology refurb step-up to Cellular (£50–75/sqft) takes capex to £275k–£415k — material relative to the value uplift. Single vehicle access door is also a constraint on multi-occupancy logistics.

Indicative: not pursued as primary angle. Would require structural M&E partitioning, separate metering, fire compartmentation. Better suited to purpose-built multi-let estates (e.g. Westfield IE, Cumbernauld at 10.17% yield).

4. SSAS / pension hold Moderate

Industrial is SSAS-eligible commercial. At 50% LTV the loan drops to £160,000, debt service to £12,800, net cash to £23,200. SSAS range £155,000–£190,000 (tax-free income and gains inside the wrapper).

Suits: investor with existing SSAS capacity who can transact in cash or with a low-LTV facility, and is willing to accept the lease-up risk in exchange for the tax shelter.

Timing	Scenario	Value	Implication
Month 0	Purchase + acquisition costs + refurb start	All-in £344,218	Equity deployed: £136,218 (assumes acquisition bridge at 65% × VP)
Month 3	Refurb complete, marketing starts	—	Empty rates begin month 4 (Scotland 3-month exemption)
Month 12	Stabilised let at ERV	£390,000	Refinance on actual income at term-loan rates (5.5–6.5%), pull equity
Month 18	Refi residual	£255,000	65% LTV against stabilised value, leaves cash-in-deal around 25–35% of original equity

Refinance scenario assumes the methodology ERV is achieved at lease-up. Slower or lower lease-up reduces stabilised value proportionally.

Rent achieved	Exit @ 8.00%	Exit @ 9.25%	Exit @ 10.50%
£31000	£385,000	£330,000	£290,000
£36000	£450,000	£390,000	£345,000
£41000	£520,000	£450,000	£395,000

3×3 stabilised exit-value grid. Methodology base case is £36,000 rent at 9.25% yield = £390,000.

Holding structure

SSAS or Ltd company SPV are the two viable structures. SSAS is preferred if the investor has pension capacity, because industrial fits the eligibility tests and income / gains accrue tax-free inside the wrapper, materially improving the after-tax return at the 50% LTV that SSAS structures typically use. Ltd company SPV is the alternative if SSAS capacity is unavailable or the investor expects to release equity to fund other deals — 65% LTV is achievable on stabilised income, with corporation tax (25% main rate) on net rent. Personal ownership is not appropriate for a vacant commercial unit of this size and risk profile.

Sources

Ryden 2025 Scottish Property Review — industrial yield and rent benchmarks for Glasgow / West Scotland
Scottish Assessors Association — Rateable Value £24,250 (verified against brochure rates payable £12,077 = RV × UBR 0.498)
G M Brown Property Consultants — listing brochure (size, accommodation, asking)
Rightmove — listing page
Scottish Government — LBTT non-residential bands 2026 (0/1/5%)

Jurisdiction

Scotland