Industrial estate deal
11-acre Braehead site acquired for £7.1m
Howden’s operation at Braehead
Asset manager London & Scottish Property Investment Management has acquired the 11-acre industrial site occupied by Howden engineering in Braehead for £7.1 million.
With an annual rent of £763,000 (£3.73/sq. ft.) and 4.3 years to run on the lease, the price reflects a net initial yield of 10.1% after acquisition costs have been taken into account. Inglis Howie advised on the acquisition.
The 204,414 sq ft manufacturing and warehousing facility on Old Govan Road dates from the 1960s, but since taking it over in 1982, Howden has extended and developed it to accommodate large-scale manufacturing.
It now comprises five interlinked warehouses, with eaves heights ranging from eight metres to 17 metres, and houses 15 heavy-duty cranes. In addition to the industrial units, the site has 18,337 sq ft of ancillary office accommodation over the ground and first floors as well as 230 parking spaces.
The area immediately surrounding the Howden site has witnessed a lot of residential development in recent years in addition to commercial, industrial and retail activity.
Nearby is the Intu Shopping Centre at Braehead, which provides 370,000 sq ft of retail space. To the south on the other side of the M8 motorway lies Hillington, Scotland’s largest business park. At over 2.3 million sq ft, it accommodates over 500 organisations employing over 5,000 people.