PropLens · Deal Sheet

986-1008 Pollokshaws Road, Glasgow G41 2HG

Industrial workshop 17,022 sqft Investment · Fair
Asking
£650,000
View on LoopNet
Offer range · Operational reposition
£905,000
£975,000
Lower end · 20% Upper end · 15%

Asking £650,000 sits 28% below the lower end (£905,000 – £975,000). Income basis is market ERV; passing rent is not disclosed.

Income basis Market ERV from comparables (Glasgow industrial £7.25/sqft on Fair condition). Passing rent undisclosed; treat as effectively vacant for valuation.
£104,900 − £0 → NOI £104,900

Offer explorer

Your offer
£975,000

Equity required
£0
Lender lends £741,000 against VP £1,140,000
Cash-on-cash
0%
 
DSCR @ 8%
1.77×
Same at any price
Net cash flow
£45,620
NOI − debt service (fixed)

Lender lens · five ratios

DSCR @ 8% rate 1.77× Viable
Stress DSCR @ 10% rate 1.42× Viable
Debt Yield (NOI / Loan) 14.2% Strong
Yield on Cost 0% Viable
Net Initial Yield 0% Viable

65% LTV · 8% IO · 7% costs · NOI £104,900 · VP £1,140,000 (lender basis)

Thesis

A 17,022 sqft south-Glasgow workshop comprising two adjoining buildings: a two-storey concrete-framed structure and a single-storey brick workshop with pitched roof. The asking price implies £38/sqft, well below the methodology range derived from market ERV. The gap reflects three possibilities: a single occupier (visible signage suggests "Jackson Screenprint" trades from at least part of the building) paying below-market rent, condition issues not captured in the listing, or a thin buyer pool for 17,000 sqft of secondary industrial. Class 4/5/6 use sits comfortably with multi-let trade-counter restructuring, the dominant upside angle in current Glasgow industrial. Tenancy clarification and a building survey are the two due-diligence items that move the deal.

What's wrong with it
  • Single occupier model (one printer) concentrates income risk; vacancy of the main tenant exposes the full 17,022 sqft to a single re-let.
  • Photo indicates dated brick and concrete shell with visible weathering, painted brick, exposed services, COVID-2020 signage suggesting limited recent investment.
  • Lot size of 17,022 sqft is above the comfortable buyer pool for individual investor purchases; sits between owner-occupier and institutional brackets.
What's right with it
  • Class 4/5/6 use class permits light industrial, storage, and general industrial; broad re-let envelope without planning change.
  • Shawlands / Strathbungo location: residential catchment of c.20,000, strong south-side affluence, transport links to Glasgow city centre 3 miles north.
  • Asking £38/sqft sits well below the £40-80/sqft range typical of secondary Glasgow workshop stock; price discovery favours the buyer.
Risks
  • Tenant covenant unknown; if the printer is the sole occupier, the deal's income depends entirely on one trading business.
  • Building age and concrete-frame construction may carry latent capex (roof, M&E, electrics) not visible in one external photo.
  • Re-let void of 6-12 months in the event of single-occupier departure; alternative-use marketing widens the pool but takes time.
DD gaps
  • Lease/licence schedule, passing rent, WAULTC, rent review history — none disclosed in the listing.
  • Building survey: roof condition (single-storey pitched + flat two-storey), M&E, electrics, asbestos register.
  • Rateable value, EPC band, service charge history, VAT status on the sale.
Considerations
  • Two adjoining buildings: title structure (single title vs split titles) affects subdivision options.
  • Conservation Area status: Strathbungo Conservation Area boundary runs near Pollokshaws Rd; external alteration consent may be required.
  • Trade-counter / sub-divide angle assumes 17,022 sqft can be partitioned; structural inspection required to confirm internal fit-out flexibility.
SSAS variant · 50% LTV

With pension-funded capital at 50% LTV: range £810,000 – £900,000. Lower than the leveraged range because less borrowing demands more equity. Industrial Class 4/5/6 use makes this SSAS-eligible.

Property & Valuation

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

Facts

ItemValue
Address986-1008 Pollokshaws Road, Glasgow G41 2HG
Property typeIndustrial workshop (Class 4/5/6)
Size (stated)17,022 sqft
NIA (estimated)14,469 sqft (×0.85 from stated)
TenureInvestment (heritable, assumed)
Asking£650,000 (£38.19 / sqft)
ConstructionTwo-storey concrete frame + single-storey brick
RoofFlat (two-storey block) + pitched (single-storey block)
ParkingOn-site, surface yard
Visible signageJackson Screenprint (occupier inference)
AgentsGregor Brown, Kerrie Currie (LoopNet listing)
Conservation areaStrathbungo CA (boundary proximity to verify)

Photos

Physical assessment

  • Exterior: brick and concrete two-storey block with white-painted ground floor; steel-framed industrial windows (mostly intact, double-glazed per listing); flat roof; chimney stack visible. Single-storey adjoining brick workshop has traditional pitched roof. External condition shows weathering, dated paintwork, visible service runs.
  • Layout: open-plan accommodation over both floors of the two-storey block, with WC facilities and tea-prep. Single-storey workshop adjacent. 17,022 sqft total.
  • M&E: not detailed in listing; building age and visible electrics suggest dated installation. Newly installed double-glazed windows are confirmed in listing.
  • Access: vehicular access to surface yard with on-site parking. Pedestrian door visible in photo.
  • Surroundings: south-Glasgow mixed industrial / residential frontage on Pollokshaws Road. Tenement residential nearby. Near Queen's Park and Shawlands retail.
  • Condition rating: Fair (default; no listing-text trigger for Good or Poor).

Per-unit income

Component£/yr
ERV at £7.25/sqft × 14,469 sqft NIA£104,900
Passing rent (undisclosed)n/d
Landlord costs (assumed)£0
NOI used in calculation£104,900

Income is based on market ERV from Glasgow industrial comparables (Ryden 2025: Glasgow average £7.69/sqft, multi-let/trade £14+/sqft). £7.25/sqft applies the Fair-condition multiplier (×0.85) to a £8.50/sqft base typical of secondary Glasgow workshop stock. Passing rent has not been disclosed by the agent; the methodology treats this as the ERV basis with a void-period caveat.

Yield selection

Selected ARY: 8.0%

Anchored to acquisition-benchmark data for Shawlands (yield range 8-10% for secondary commercial). Glasgow West Scotland industrial secondary yields per Ryden 2025 sit at 6-8%; this property at 17k sqft secondary workshop sits at the upper end of secondary (8.0%).

Yield£
At 7.5%£1,398,667
At 8.0% (selected)£1,311,250
At 8.5%£1,234,118
At 9.0%£1,165,556

Term yield (7.25%) and reversion yield (8.0%) apply if a tenant lease is confirmed in due diligence.

Valuation stack

BasisValueWorkings
Rack Rent (ERV / ARY)£1,310,000£104,900 / 8.0%
VP (MV3)£1,140,000Rack less 12mo void, 6mo rent-free, 10% reletting, holding costs
Gap (Rack − VP)£170,000Value created by lease-up
90-day restricted (VP × 0.80)£910,000Lender stress test
180-day restricted (VP × 0.90)£1,025,000Realistic exit
Asking£650,000£38.19 / sqft

T&R is omitted because passing rent is undisclosed. MV1 / MV2 do not apply (no multi-let trade-related assumption in the base case).

Acquisition benchmark

Glasgow (Shawlands proxy)

MetricRangeThis property
Capital value (£/sqft)£40-80 (secondary industrial)£38
Asking yield (on ERV)8-10%16.1% (ERV / asking)
Conventional lease rent (£/sqft)£7-14£7.25 (ERV used)

Asking sits at or just below the secondary industrial capital-value range. The implied yield-on-asking of 16.1% materially exceeds Glasgow secondary industrial yields (6-8%), consistent with either undisclosed under-rent or a discount reflecting condition / lot-size factors not in the listing.

Purchase costs

Item£ at £975,000
LBTT (Scotland, non-residential)£37,250
Legal fees£4,500
Disbursements£650
Broker (1%)£9,750
Lender arrangement (2% × 65% LTV)£12,675
Lender legal£2,500
Surveys / DD£2,000
Total£69,325

Methodology uses a 7% × price working figure; itemised costs sit between 6 and 7.5% across the range.

Strategy & Appraisal

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

Value-add angles

Multi-let trade-counter restructureStrong

Subdivide 17,022 sqft into 4-6 trade-counter units of 2,500-4,500 sqft each. Glasgow trade-counter rents £12-14/sqft per Ryden 2025; multi-let stabilised at £12/sqft would lift ERV from £104,900 to ~£174,000, adding ~£860,000 to capital value at 8.0%.

Capex: standard partition + M&E at £50/sqft = ~£850,000 (full subdivision) or £25/sqft for cosmetic only (~£425,000) if internal structure already permits. Risk: lease-up of multiple units takes 18-24 months; specialist letting agent required.

Hold as single-let, lease regearModerate

If existing occupier (assumed Jackson Screenprint) is paying below market, a lease regear or new 5+ year FRI lease at market rent shifts the lender basis from VP to T&R, lifting the achievable price.

Trigger: lease schedule disclosure and rent-review history. Risk: tenant covenant unknown; small printing trader covenant adds yield premium.

Alternative use: residential / mixedWeak

Pollokshaws Rd has residential to the rear; change of use to residential or mixed-use could in principle apply. Glasgow CDP 2017 prioritises retention of industrial land in established industrial areas, and conversion costs (£125+/sqft) at this scale produce a negative residual against likely GDV.

Capex: £125+/sqft commercial-to-residential = £1.8m+ on NIA. Risk: planning loss of industrial land typically refused without compensating provision.

SSAS purchaseModerate

Class 4/5/6 industrial use is SSAS-eligible. Pension-funded purchase at 50% LTV produces a range of £810,000 – £900,000. 0% tax on rental income and gains within the scheme is structural rather than performance-driven.

Constraint: SSAS borrowing capped at 50% of net scheme assets. Suitability: long-term hold with patient capital.

Holding structure

Industrial Class 4/5/6 makes this SSAS-eligible. For an investor with sufficient pension assets, SSAS purchase preserves capital outside the personal tax envelope and lifts the net cash-on-cash by removing income tax on rental income. For a leveraged investor, a Company (SPV) structure suits operational restructure to multi-let, where active management justifies the company overhead. Personal ownership is the least efficient route at this lot size.

Tags

Industrial South Glasgow SSAS-eligible

Sources

  • Ryden 90th Scottish Property Review 2025 — Glasgow industrial rents and yields
  • Knight Frank Scotland Report 2025 — market context
  • Revenue Scotland LBTT bands (current to 2026-2027)
  • PropLens internal benchmarks for Shawlands / G41 — secondary commercial
  • Glasgow City Development Plan 2017 — industrial land retention policy

Jurisdiction

Scotland (LBTT applies)