DM Hall secures above asking price sale of prime investment property in the heritable interest of 65 Bruntsfield Place

DM Hall, one of Scotland’s largest firms of independent chartered surveyors, has secured the sale above the asking price of a unique investment opportunity in the heritable interest of 65 Bruntsfield Place, EH10 4HQ, a 10,028 sq. ft. property located in the highly sought-after and affluent Bruntsfield-Morningside district of Edinburgh, just 1.5 miles south of the city centre.

The property, a substantial traditional detached two storey B Listed Georgian villa, constructed in 1826 with a sympathetically created extension to the rear, is currently let in its entirety to the City of Edinburgh Council without a break until November 2033 and is used as a hostel. The Council took occupation of the property in November 2003 and currently sublets it to a local housing association.

Ross Chinnery, a surveyor in DM Hall’s East Commercial Property team, based in Edinburgh, said: “65 Bruntsfield Place was originally a private residential dwelling which was granted a change of use to an unlicensed hotel in November 2000.

“The building’s accommodation is arranged over basement, ground and first floor levels set within a generous plot extending to some 0.38 acres or thereby with private gardens to the rear.
“DM Hall was initially instructed by the landlord, an overseas private investor, to renegotiate the current lease with the City of Edinburgh Council where a new 15 years extension was agreed with an uplift in rent.
“On the strength of this, the client sought to move the property on, and DM Hall was then instructed to sell the investment. Initially, offers over £2.92m were invited for the benefit of the heritable interest but the subjects generated such a strong level of interest from investors, ranging from private individuals to large corporate funds, that a closing date was set, creating a competitive bidding situation.

“The property was sold successfully for £3.36 million reflecting a Net Initial Yield of 4.33%, showing a significant uplift on the property, and evidencing the fact that there is a substantial market for this type of investment when properly marketed.”

The building is currently used as a 20-bedroom hostel for homeless people, with 14 of the bedrooms having en-suite facilities. There is a shared kitchen and the accommodation is arranged over basement, ground and first floor levels. There is a lift within the extension providing access to all levels, aside from the basement in the original building.

Back to latest news
2019-03-27T15:30:23+00:00