A commercial property investor has moved into Scotland with a £16 million deal that signals confidence in the outlook for the market and wider economic activity in the central belt.

The Mileway venture run by private equity giant Blackstone has bought two units on the Eurocentral business park by the M8 in Lanarkshire for £16.1 million.

Experts said the deal reflected strong demand for warehousing space in what are regarded as convenient locations in Scotland.

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“The supply shortage in units of this size and quality has led to vacancy rates hitting the lowest level ever recorded in 2019 at 5.55 per cent, adding to the attractiveness of the asset class in Scotland,” said Stuart Orr, a director at Savills, which advised on the deal.

Demand for warehousing units will be affected by changes in the fortunes of firms in sectors such as retailing and food and drink production.

The Colossus 1 and 2 units acquired by Mileway are currently let to Wincanton, which provides transportation and warehousing support for retailers and food and drink manufacturers, and to the Hermes Parcelnet delivery business.

Mileway was established by Blackstone in 2019 to manage around 1,000 logistics assets acquired by funds run by the investment business.

Blackstone noted then that it expected to generate good long term returns in the European logistics sector. It described Mileway as the largest owner of last mile logistics real estate assets in Europe.

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Mileway chief executive Emmanuel Van der Stichele said the growth of e-commerce and urbanization was intensifying the requirement for faster logistics solutions.

Savills acted for US real estate giant Kennedy Wilson in the sale of the Eurocentral units to Mileway.

Separately, the Duke of Buccleuch’s commercial property business has put a development site in West London on the market amid a perceived improvement in market sentiment since the general election.

Buccleuch Property expects the site in Hayes to generate strong interest among potential buyers. It covers around four acres of land close to the location of a planned station on the route of the new Crosssrail transport link.

The company has gained planning permission for a scheme featuring 457 residential units and commercial space. It reckons a completed development of that kind could be worth around £200 million.

Sandy Smith, development director at Buccleuch Property, said the site had potential to deliver much needed private and affordable housing into the London market.

Buccleuch Property is being advised by Savills and Carter Jonas. Savills director Rob Pollock said: “With the improved market sentiment following the general election, we anticipate that an opportunity of this scale and price point will appeal to a broad spectrum of developers.”