£12.25m deal for retail sheds
Corum adds East Kilbride shopping park to portfolio
The deal for East Kilbride Retail Park ‘shows an appetite for warehouse assets’
East Kilbride Retail Park has been acquired by a property investor in a deal worth £12.25 million, representing a net initial yield of 10.49%.
Corum Asset Management, based in France, will add the 59,404 sq ft scheme to a growing commercial property portfolio in Scotland.
The deal includes a substantial retail warehouse cluster adjacent to Kingsgate Retail Park, with the current tenants including The Range, Pets at Home, Currys PC World and Halfords.
The buyer was represented by Knight Frank, while Cushman & Wakefield acted on behalf of the vendor Aberdeen Standard Investments.
Rhu Wishart, surveyor at Knight Frank Edinburgh, said: “The deal for East Kilbride Retail Park shows there is still an appetite for well-located retail warehouse assets, despite the challenges posed by online shopping. It also underlines investors’ desire for long-term income supported by strong covenants while macro-economic conditions remain uncertain.
“East Kilbride is also set to benefit from new residential and infrastructure developments over the course of the next few years through the Glasgow City Region Deal, which can only have a positive knock-on effect for retailers and the retail park itself.”
Corum XL, part of CAM, last month acquired 77,273 sq ft of prime office space at 2 Atlantic Quay on the Broomielaw, Glasgow, and fully let to Lloyds Banking Group, in a £22.5m deal.