Item no 26
Report no
Unit 4, Pentad Hub, 17 South Gyle Crescent,
Edinburgh – Proposed new lease
Finance and Resources Committee
29 March 2011
Purpose of report
1
To seek authority to grant a new ten year lease to Roddy McKenzie
trading as the Glass Room.
Main report
2
Unit 4 Pentad Hub which is shown hatched on the attached plan, is a
restaurant unit and forms part of the former EDI Portfolio which the
Council purchased in December 2009.
3
The property is part of the larger Pentad development, a mixed use
office and retail scheme situated on South Gyle Crescent.
4
Heads of terms have been provisionally agreed to lease the unit to
Roddy McKenzie, trading as the Glass Room on a full repairing and
insuring basis for ten years at an initial rental of £32,500 per annum,
exclusive of vat.
5
There will be an initial rent free period of three months to allow for
fitting out of the unit and an upward only rent review at year five.
6
The proposed Tenant shall also take on responsibility for the repair and
maintenance of the trade fixtures and fittings currently located within
the premises and will take ownership of these after five years provided
the Tenant is not in breach of lease.
7
The proposed Tenant is a new business with no financial covenant
strength and consequently a rental deposit of £15,000 will be lodged
with the Council.
Financial Implications
8
Revenue income of £32,500 per annum to be credited to the City
Development EDI Account.
Environmental Impact
9
There are no adverse environmental impacts arising from this report.
Recommendations
10
To approve a ten year lease of Unit 4 Pentad Hub, 17 South Gyle
Crescent to Roddy McKenzie trading as the Glass Room on a full
repairing and insuring basis at a rental of £32,500 per annum and on
such other terms and conditions to be agreed by the Director of City
Development and the Head of Legal and Administrative Services.
Dave Anderson
Director of City Development
Appendices
1. Location Plan
Contact/tel/Email
David Kelly, Investment Property Manager Tel 529 5933 – E-Mail
[email protected]
Wards affected
3 Drum Brae/Gyle
Single Outcome
Agreement
National Outcome 2 – We realise our full economic potential with more
and better opportunities for our people.
National Outcome 10 – We live in well designed sustainable places
where we are able to access the services and amenities we need.
Background
Papers
None