A warehouse estate next to Glasgow Airport has been sold for £5.3 million.
Warehouse REIT, the AIM-listed company that invests in e-commerce urban and last-mile industrial warehouse assets in the UK, announced the acquisition of "the modern multi-let warehouse estate" on Glasgow Airport Business Park, totalling 55,600 sq ft, from Squarestone Asset Management.
The three units, which range from 16,500 sq ft to 21,600 sq ft, are occupied by two global transport, logistics and delivery companies and a craft beer distributor.
The buyer said the purchase price reflects a net initial yield of 6.3%.
The property generates a net rental income of £357,000 a year, equating to a low average passing rent of £6.40 per sq ft.
Glasgow Airport Business Park is described as a prominent business location adjacent to Glasgow Airport, about nine miles west of the city centre.
Scotland’s industrial market saw take-up in the first three quarters of last year reach over four million sq ft, a 2.5% increase on the same period the previous year.
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Warehouse REIT last month announced it had successfully raised £45.9 million by way of a placing to fund a near term pipeline of acquisitions.
Andrew Bird, managing director of the investment advisor Tilstone Partners Limited, said: “Glasgow is one of the UK’s most dynamic cities, with a growing workforce. Given ongoing e-commerce demands and a vibrant occupational market, it is forecast to see strong levels of warehouse investment activity and rental growth. The business park occupies a highly sought-after position and furthers the company’s exposure in what is a key market, whilst adding three strong covenants to the tenant roster.
“Whilst the company has now completed on its near-term pipeline identified as part of the recent successful placing, thereby deploying all of the equity raised, it continues to source attractive opportunities in line with its ambition to continue scaling and diversifying the portfolio, utilising the agreed revolving credit facility.”
Paul Coulter, Squarestone Asset Management founding partner, said: "We are primarily focused on regional UK office investment and bought Glasgow Airport Business Park in 2018 to acquire the 80,000 sq ft Lightyear building that we fully redeveloped and 100% let within 18 months.”
"Units A-C had two lettings in place to strong covenants, and one unit that had been vacant since purchase. Our strategy was to use our asset management skills to extend both leases, let the vacant unit, then sell the investment to focus on our key office holdings."
Colliers acted for the Squarestone and Savills acted for Tilstone on behalf of Warehouse REIT over the acquisition of the industrial unit of the park.
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