The client
5 Douglas Street is a first-floor, multi-let building in Dunfermline city centre, on the main route between the bus station and the High Street. It has five suites let to local independent businesses on yearly licences, plus an attic used only for storage. Dunfermline city centre had no dedicated coworking space.
The challenge
After 40 years in engineering and two years running Antonine Hub for its owners, this was the first time we had bought a commercial building ourselves. We had to learn the buying side from scratch: how to value an income-producing building, how commercial lending works, what due diligence uncovers, and what an owner is responsible for from day one.
What we did
- Found it online and checked the income, not just the building. The building was listed on the DM Hall website. We reviewed every licence, rent and expiry date to understand what we were really buying.
- Got an independent RICS valuation on two bases: as an investment with its tenants, and with vacant possession. That set a fair price and showed the downside.
- Financed it in two stages. A short-term bridging loan, with a refurbishment facility, buys the building and gives time to move the existing tenants onto longer licences to occupy. With that income secured, the loan is refinanced onto longer-term lending.
- Found the compliance gaps. The building did not meet current fire-safety standards. We planned the works in three phases: fire doors, fire alarm and emergency lighting first; then the corridors; then LED lighting, all within the lender’s deadline.
- Measured every room. A hand-measured survey and floor plans for each suite, used for licences, the valuation and fire planning.
- Dealt with security. Fitted a guard to an external roof ladder that people had been climbing.
- Wrote a business plan and worked with Business Gateway Fife.
- Set up to operate. Plans to move tenants onto 3–5 year licences, a website, CRM, ID and AML checks, virtual office and mail services, and an AI receptionist. A feasibility study is under way on the attic’s access and temperature, to decide between coworking and an art space.
What we'd tell another first-time buyer
- Buy the income as well as the building. Read every licence and know when each one ends.
- Get a RICS valuation on both an investment and a vacant-possession basis. The gap is your risk.
- Budget for compliance before cosmetics. Fire safety came first.
- A bridging loan buys you time to secure the income. Plan the refinance before you draw it, and know the lender’s conditions.
- Measure everything yourself. Accurate floor areas feed into licences, rates and valuations.
- Look for income that doesn’t need more floor space, like virtual offices and mail.
The result
Saltire Spaces is completing its purchase of 5 Douglas Street in October 2026 and will run it as a business centre: private suites, virtual mail and business addresses, and an AI receptionist, with coworking planned. Visit Saltire Spaces.
[ADD: progress on the works, licences renewed, virtual office clients.]
