UK Commercial Property REIT has acquires M8 Industrial Estate near Glasgow in Scotland from Grayling Capital for a headline price of €27.7m (£24.6m), based on a topped up net initial yield of 5.9%. The acquisition is being funded through existing cash resources.
M8 Industrial Estate, one of Scotland’s premier industrial estates, comprises 20 units totalling 290,104ft² and offers the potential for two further developments on site. M8 is at 92% occupancy and is well let to tenants including Boots UK, Rentokil and PTS with an attractive WAULT of seven years to expiry and six years to break. There are three smaller void units and with the average passing rent of €5.9 (£5.25) per ft², there is an opportunity to let up vacant space and grow rents.
M8 is located in Central Scotland, immediately to the east of Glasgow, at the junction of the A8 and A725, providing immediate access to the M8 linking Edinburgh and Glasgow. The asset is also situated close to access to the M74 linking Scotland to England and the M73, which provides a key route to the North.
Will Fulton, Lead Manager of UKCP REIT at Aberdeen Standard Investments, said: “This transaction is a continuation of our stated strategy to invest capital into prime assets which offer income growth potential and that are accretive to dividend cover.M8 Industrial Estate is a high quality, multi-let industrial asset, which not only generates stable income but also offers potential to capture reversion and lease up space. There is also an opportunity for future value creation and income growth through active asset management.”
UKCP REIT was advised by JLL with MWM acting for Grayling Capital.
