Sighthill takes Westerwood into industrial market
The units occupy the site of former offices
Vardy Property Group has sold a multi-let industrial and trade counter property in Sighthill Industrial Estate, Edinburgh to Westerwood Properties in a £3 million off-market transaction.
The sale price for 8 Bankhead Crossway North reflects a net initial yield of 5.31% and marks Westerwood’s entry into the industrial market.
The 18,204 sq ft building incorporating three units is fully let to Thornbridge Timber, Ashley Ann and Young Spirits. The weighted average lease term was 8.57 years and all leases contain RPI-linked rent reviews.
Vardy redeveloped a 1970s office building on the estate which it acquired in 2018. Following demolition, modern and flexible space was created including trade counter frontage, distribution warehouse and secure yard which attracted strong tenant interest.
Will Sandwell, investment partner at Galbraith commented: “Following a number of other high profile industrial sales in Edinburgh, our client felt the time was right to exit this development.
“Offering a strong income profile from modern stock in a prime location allowed us to identify the demand for such an investment without formal marketing. The transaction was able to conclude within four weeks.”
Craig Watson of Westerwood Properties said: “We are delighted to have secured the first industrial holding for our portfolio. The quality and location of the development makes it a perfect fit for our requirements”
Property agents Galbraith acted for Vardy Property Group with legal advice from BTO Solicitors. Westerwood Properties were represented by agents Ryden and solicitors Aberdein Considine.
Industrial demand ‘remains strong’
Scotland’s industrial and logistics commercial property market has seen strong demand throughout the COVID-19 pandemic and this performance is expected to continue, according to a new survey.
Colliers International said demand across the central belt for industrial space has continued to come from a broad range of sectors, such as medical, food and drink, engineering, storage and distribution.
Iain Davidson, agency’s director of Industrial and Logistics, said: “While it would be naïve to think the industrial and logistics sector in Scotland may be totally immune to the economic fallout, the pandemic has super-charged an already strong market.
“Tight supply is continuing to bolster rents and values, supply of accommodation has reached critical levels and we’re likely to see take-up impacted, as occupiers struggle to find suitable premises. We therefore need a much stronger development pipeline and fast.”