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Friday, September 08, 2023

Flemington Securities Limited secures first acquisition for 3.175m

Flemington Securities Limited has this week completed the purchase of a 12,500 sq ft office building at 120 West Regent Street, Glasgow from Interim Properties Limited for a price of 3.175m, reflecting a net initial yield of 5.85%. The building is fully let to HSBC Bank plc at a total passing rent of 196,300pa, under two leases expiring in September 2015.

The passing rents in the building reflect a rental rate of less than 15 per square foot, compared with prime Glasgow rents now established at around 25 per square foot. The property, constructed over six levels in 1990, comprises open plan floor plates of 2,500 square feet and offers raised floors, lift access to all levels and seven garage car spaces.

Flemington Securities is a newly established company specialising in longer term, well-let investments offering a secure income stream with above average rental growth prospects. The company is owned by Glasgow-based investor/developer Gregor King, who also owns property trading company Oban Bay Properties Limited and developer Black King Developments Limited, with total gross assets now approaching 10m. In addition, King owns a 25% interest in an office refurbishment and development project known as Onesixty at 160 Dundee Street, Edinburgh, a joint venture with Halladale Group Plc which has a potential completed investment value of around 40m.

Gregor King commented: "Having taken advantage of the trading market over the last few years, we now see the potential being for longer term holds where there is a very real prospect of rental growth. This property fits the bill perfectly and we are keen to source more, similar product in the future."

Debt finance for the purchase was provided by Nationwide Property Finance and Knight Frank acted for Flemington in the acquisition. Interim Properties Limited represented themselves.

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