AN INDUSTRIAL estate in the Scottish capital has sold for £8.5 million amid strong investor demand for industrial and logistics sites during the coronavirus pandemic.

Despite the uncertain wider economic backdrop, such locations have been prime targets and Stenhouse Mill Wynd, a multi-let industrial estate, has changed hands in the deal.

The site was sold by Telereal Trillium, the property company, to an undisclosed buyer. Knight Frank acted for the vendor on the transaction, which reflected a net initial yield of around 5.5 per cent.

Set about two miles to the west of Edinburgh city centre, Stenhouse Mill Wynd consists of two terraces of modern industrial units totalling 63,182 sq ft of space.

READ MORE: Scottish warehouse estate sold for £5.3m

The site is home to a range of tenants, including Travis Perkins, the building materials retailer, electrical supplies distributor Rexel, and Chubb, the insurer.

John Rae, head of office and capital markets partner at Knight Frank Glasgow, said the site had attracted significant interest. “Investor demand for well-let industrial, trade counter, and logistics sites has been strong throughout the Covid-19 pandemic, despite the uncertain wider economic backdrop,” he said.

“There was a great deal of interest in Stenhouse Mill Wynd and we expect similar assets will continue to be an attractive proposition as we move further into 2021.”

He aded: “Although we are in lockdown, deals are still managing to conclude and investors appear to be looking beyond our immediate circumstances for opportunities. Pricing has been similarly resilient for the right type of assets – broadly speaking prime offices, industrial property, and quality warehousing."