UBS AM acquires Seven Hills Business Park for €17.5m (GB)

UBS AM acquires Seven Hills Business Park for €17.5m (GB)

UBS Asset Management's (UBS-AM) Real Estate & Private Markets (REPM) business, acting through Triton Property Fund has, by way of a forward commitment, acquired Seven Hills Business Park, in Edinburgh, Scotland, for an expected total consideration of circa €17.5m (£15m). The property was partially funded through the timely recycling of proceeds following the sale of Triton's industrial facility in Bristol, which was sold for €11.2m (£9.6m).

 

Seven Hills is prominently situated within Sighthill Industrial Estate, regarded as Edinburgh’s principal and best industrial location, with excellent transport links. There is an existing 46,835ft² asset on the site which comprises three high-specification units, all of which are let or under offer to strong covenants, providing a weighted average unexpired lease term (WAULT) of nine years. An adjacent new 76,000ft² development – which is due to complete in autumn 2019 – will offer 11 additional units from 3,360 to 14,700ft² and provide the local market with a much-needed new supply of modern industrial/trade counter space.

 

This acquisition is directly in line with the fund’s strategy to enhance its income distribution and increase its exposure to industrial assets, with a particular focus on urban logistics in major cities. Seven Hills represents the 13th industrial property in Triton’s portfolio, which now accounts for approximately 42% of the portfolio. The balanced fund also comprises offices, retail warehouses and student accommodation.

 

Jonathan Hollick, Portfolio Manager of Triton, commented: “The prompt reinvestment of proceeds from the disposal of a non-core asset enabled us to gain access to this prime industrial property in a strong location, while at the same time increasing the quality of our overall portfolio. Edinburgh’s industrial market remains characterised by a lack of supply, making the development aspect of this investment particularly attractive, and leaving us confident in the asset’s ability to generate strong returns for the fund.”

Related News