Stenprop has acquired St Andrews Industrial Estate, a 73,248ft² MLI estate of nine high-quality warehouse units near Glasgow City Centre. The €6.1m (£5.5m) acquisition price reflects a net initial yield of 7.3% and a capital value of €83 (£75) per ft². Located on the south side of Glasgow, the estate benefits from its proximity to the city centre as well as excellent arterial connectivity, with both the M8 and M74 within 1.5 miles. Of the nine modern industrial units, seven are currently occupied by a diverse range of tenants including storage, trade counter and manufacturing uses, accounting for 85% of the gross lettable area and delivering a total annual passing rent of €475,382 (£428,936).
Will Lutton, Head of Investment at Stenprop, commented: "St Andrew's Industrial Estate is the latest example of our ability to source attractive investment opportunities in locations underpinned by favourable demand-supply dynamics. Our knowledge of the Glasgow market coupled with the vacancy provides a compelling opportunity to capture the estate's reversionary potential and improve the rental tone, leveraging our increasingly relevant and proprietary leasing platform, industrials.co.uk. Current indications are that the strong occupational demand for urban warehouse space that we are seeing, led by e-commerce penetration, is set to continue. This acquisition maintains our transactions momentum since the Coronavirus pandemic and is another step forward in pivoting our entire portfolio towards the MLI sector."