PropLens · 614 Dalmarnock Road, Glasgow G40 4NN

Offer range · Income hold

£115,000

Asking · auction guide

Prime Property Auctions

Step down −£10,000 · −9% to reach 15% cash-on-cash

£105,000

TargetUpper end · 15% c-on-c hurdle

vs asking

−9%

Step down −£5,000 · −5% to reach 20% cash-on-cash floor

£100,000

Lower end · 20% c-on-c floor

vs asking

−13%

Range £100,000 – £105,000 Bid band · Tight an unusually narrow gap

Stabilised income

£12,000/ yr NOI

£12,000 ERV − £0 op. costs → NOI

Actual rent roll from Grillzz lease at £12,000 per annum. Tenant pays nil rates under Small Business Bonus Scheme (RV £5,200).

Cost to stabilise

£0one-off refurb

No refurb required — tenant in place under 16-year lease

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

Offer explorer

Your offer

£105,000

Equity required

£0

Lender lends £74,750 against T&R £115,000

Cash-on-cash

DSCR @ 8%

2.01×

Same at any price

Net cash flow

£6,020

NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 2.01× Strong

Stress DSCR @ 10% rate 1.61× Strong

Debt Yield (NOI / Loan) 16.1% Strong

Yield on Cost 0% Viable

Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £12,000 · T&R £115,000 (lender basis) · Refurb-to-let ()

Thesis

Tenanted single-storey corner takeaway in east Glasgow (Dalmarnock / Bridgeton, G40), let to Grillzz on what the listing states is a lease with 16 years remaining at £12,000 per annum. The 10.4% gross yield at asking reflects the secondary-Scotland commercial pricing band; the long unexpired term supports a Term & Reversion lender basis at the passing rent, giving the methodology range £100,000 – £105,000 at the standard 20%/15% cash-on-cash hurdle. Asking sits roughly 9% above the upper end, an unusually narrow gap that prices the deal close to the 15% cash-on-cash hurdle without significant negotiation room. The rateable value of £5,200 falls under the £15,000 Small Business Bonus Scheme threshold, so the tenant pays nil rates. The listing references substantial rear land which, subject to title and planning, may carry residential or light-commercial development optionality as a secondary angle. Hot food (Class 3 in Scotland) is SSAS-eligible commercial, supporting a pension purchase route.

What's wrong with it

Single-tenant exposure to a small local operator. Re-let risk on lease expiry in 16 years is uncertain given east-end secondary commercial location.
Asking sits within 10% of the methodology upper end; the deal is priced at-market for the income lens with little negotiating room before the upper c-on-c hurdle.
Class 3 hot food consent narrows the next-tenant universe. If Grillzz vacates, alternative occupier pool is smaller than for general A1 retail.

What's right with it

16-year unexpired lease term gives passive income visibility and supports a conventional Term & Reversion lender basis.
Rateable value £5,200 sits below the £15,000 Small Business Bonus Scheme threshold; tenant pays nil rates, reducing void cost if vacancy ever arises.
Corner unit on a main arterial road with traffic-light visibility and the listing notes substantial rear land that may carry future development optionality.

Risks

Tenant covenant strength on Grillzz unconfirmed. No published accounts visible for a single-site operator; a stronger covenant would shorten the implied yield.
Lease type (FRI / IRI) not confirmed without sight of the lease document. Landlord repair obligations may be material on a 1970s-style single-storey unit.
16-year lease end falls in 2042; tenant vacancy at that point in east-end secondary commercial could carry a 6-9 month void.

DD gaps

Lease document not on file. Confirm unexpired term, rent review pattern, break options, repair and insurance obligations, and any sub-let provisions.
EPC band not stated. MEES rules apply on lease renewal; current lease grandfathered until 2042 expiry but resale to a yield-buyer will require an EPC.
VAT status on the sale and on the rent not confirmed. Opted-to-tax property attracts VAT on price and on rent; not opted is simpler but limits the buyer pool.
Title boundary check on the "substantial rear land". Confirm what is included, any rights of way, and any restrictive covenants.

Considerations

Auction listing via Prime Property Auctions. Completion typically 28 days from the fall of the hammer; finance must be in place before bidding.
Rateable value £5,200 qualifies for 100% Small Business Bonus Scheme relief in Scotland; tenant pays nil rates today and any future tenant under £15k RV will too.
Hot food licence in place and the unit is fully fitted (extraction, doner spits, customer seating). If Grillzz vacates, the fit-out has residual value to an incoming hot food operator.
Rear land of unconfirmed size. A pre-application enquiry to Glasgow City Council would establish whether residential or commercial consent is realistic before committing capital.

Quick facts

Asking: £115,000 auction guide
NIA: 531 sqft
£/sqft asking: £217
Tenure: TBC
Condition: Fair
RV: £5,200 100% SBBS relief
Lease: 16yr remaining
Tenant: Grillzz (hot food)
Portal: Rightmove / auction

Headline numbers

Range: £100k – £105k
Discount: −13% / −9% off asking
NOI: £12,000 / yr
All-in @ upper: £112,350
DSCR @ 8%: 2.01×
T&R value: £115,000
SSAS range: £90k – £100k

Property & Valuation

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

Facts

Address	614 Dalmarnock Road, Glasgow G40 4NN
Property type	Commercial (hot food, Class 3 Scotland)
NIA	531 sqft (stated)
Tenure	TBC (assume Heritable / Freehold pending title)
Asking	£115,000 (auction guide, Prime Property Auctions via Rightmove)
£/sqft asking	£217/sqft NIA
Condition	Fair
Tenant	Grillzz (German Doner / Peri Peri)
Passing rent	£12,000 per annum
Lease	16 years remaining (per listing). Type and review pattern TBC.
Portal	Rightmove (auction listing)
Listing URL	rightmove.co.uk/properties/87971202
Rateable Value	£5,200 (per listing; SBBS-eligible, 100% relief)

Photos

Physical assessment

Single-storey detached commercial unit on the corner of Dalmarnock Road with traffic-light frontage to the main arterial route.
Glazed shopfront with active signage (Grillzz, German Doner, Peri Peri) and side entrance to the customer area.
Interior fully fitted as a takeaway: customer counter, bench seating along walls, doner kebab spits, kitchen with hood extraction, drinks fridge, and back-of-house prep area.
Recent tenant fit-out is in good cosmetic condition; underlying building shell appears traditional brick / tile fascia consistent with a Fair condition rating for valuation purposes.
Single WC visible on the floor plan; back-of-house service area separately accessible.
Adjacent vacant lot with billboard hoarding; "H&H Tyres" tyre yard on the opposite corner. Mixed-use commercial context.
Substantial rear land referenced in the listing description; size and consent status not confirmed by the marketing materials.

Per-unit income

Single-tenant let to Grillzz on a stated 16-year unexpired lease at £12,000 per annum. Lease type (FRI / IRI) not confirmed; the analysis assumes FRI structure pending sight of the lease document.

Unit	NIA (sqft)	Passing rent (£/pa)	£/sqft
Ground floor takeaway (Grillzz)	531	£12,000	£22.60
Total	531	£12,000	£22.60

The £22.60/sqft passing rent is above the Glasgow conventional office median of £15/sqft (Edozo, March 2026) because the use is hot food on a main road, which typically pays a premium per sqft over background office stock. Treated as at-market for the location and use.

Yield selection

Selected ARY: 11.25%

Glasgow secondary commercial midpoint 9-10% plus 175 bps sub-£500,000 lot-size adjustment. East-end location (G40, Dalmarnock / Bridgeton) is secondary, not prime Glasgow Blythswood / Collegelands. Term yield: 10.50% (ARY less 75 bps reflecting the contracted 16-year income). Reversion yield: 11.25%.

ARY	Implied gross value at NOI £12,000	Delta vs base
10.75%	£112,000	+5.0%
11.25% (selected)	£107,000	base
11.75%	£102,000	-4.7%

Valuation stack

Approach	Value	Workings
Rack Rent (gross)	£107,000	NOI £12,000 / ARY 11.25%
T&R (lender basis)	£115,000	Term £12,000 × YP 16yr @ 10.5% (7.57) = £90,786; Reversion £12,000 × YP perp @ 11.25% (8.89) PV-deferred 16yr = £21,938; total £112,724 rounded
VP (MV3)	£95,000	Rack £106,667 less 3mo void (£3,000), 6mo rent-free (£6,000), reletting fees (£1,200), holding (£1,700)
90-day restricted	£90,000	VP × 0.80 (lender stress)
180-day restricted	£105,000	VP × 0.90 (lender stress)
Asking	£115,000	Auction guide, Prime Property Auctions via Rightmove

Acquisition benchmark

Glasgow secondary commercial benchmark £160-220/sqft NIA for tenanted single-let stock on main-road frontages (Ryden 2025; Shawlands precedent). Asking £115,000 / 531 sqft = £216/sqft, which sits at the upper end of the benchmark. East-end Dalmarnock is below Shawlands and Bridgeton-centre on rental tone, so the comparison flags asking as fully priced for the location.

Purchase costs

Illustrated at the methodology upper end (£105,000). Costs scale linearly with price across the range.

Item	Amount
LBTT non-residential (Scotland)	£0
Legal fees	£4,500
Disbursements	£650
Broker fee (1%)	£1,050
Lender arrangement (2% of 65% LTV loan)	£1,365
Lender legal	£2,500
Surveys	£2,000
Subtotal purchase costs	~£12,065
Empty rates (tenant in place; no empty period)	£0
All-in cost at upper end	£117,065

LBTT non-residential band 0% applies up to £150,000 in Scotland; the asking and the methodology range both fall under this threshold so transaction tax is nil. Annual rates: tenant currently pays nil under the Small Business Bonus Scheme (RV £5,200, 100% relief threshold £15,000).

Strategy & Appraisal

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

Value-add angles

Income hold to lease expiry (primary)Strong

Buy at or below the methodology range, hold for the remaining 16 years of contracted income. Cash-on-cash at the upper end is 15% on a 65% LTV bridge, falling to 10.4% net initial yield at asking. Tenant pays nil rates under SBBS, reducing landlord cost exposure. Simple passive income with no immediate capex.

Max purchase supporting this angle (15% c-on-c hurdle, T&R lender basis): £105,000. Key risk: Single-tenant exposure to a small local operator; covenant strength on Grillzz unconfirmed.

Rear land development optionalityModerate

Listing references "substantial sized land at the rear of the property". Subject to title boundary confirmation and planning, the rear plot may carry residential or light-commercial development optionality. Glasgow City Council has actively encouraged east-end regeneration around Dalmarnock since the 2014 Commonwealth Games and the area around the property has seen successive housing-led schemes.

Speculative: requires pre-application enquiry to Glasgow City Council to confirm consent viability. Land size and configuration not disclosed in the listing materials. Key risk: The rear land may be unusable due to vehicular access constraints, contamination, or restrictive title.

SSAS purchase (holding structure)Strong

Hot food (Class 3 Sui Generis in Scotland) is SSAS-eligible commercial. At 50% LTV pension lending, the methodology range narrows to £90,000 – £100,000 (20%/15% c-on-c on the same T&R basis). Rental income and capital gains both sheltered within the scheme. Pension capacity required: c. £55,000 equity at the upper end.

Most tax-efficient holding route for a buyer with available SSAS capacity. Key risk: SSAS rules require an arm's-length commercial lease; the existing Grillzz lease must be confirmed compliant with pension administration requirements.

Holding structure

SSAS pension purchase is the most tax-efficient route. Hot food (Class 3 in Scotland) is SSAS-eligible commercial. At 50% LTV pension lending, the methodology range narrows to £90,000 – £100,000. If pension capacity is below the equity requirement, a PropCo (commercial within a limited company) sits second; personal name is third-best due to higher-rate income tax on rents.

Sources

Rightmove listing — primary source (Prime Property Auctions sale)
Ryden 90th Scottish Property Review (2025) — Glasgow secondary commercial yields
PropLens Edozo conventional rates (March 2026) — Glasgow office/commercial £/sqft median
Scottish Assessors Association — rateable value verification (RV £5,200 per listing)

Jurisdiction

Scotland