Property & Construction
Industrial units sold; Clyde bridge contract
Strong interests: Stenhouse Mill Wynd
Stenhouse Mill Wynd, a prime multi-let industrial estate in Edinburgh, has changed hands in a deal worth around £8.5 million.
The site was sold by property company Telereal Trillium to an undisclosed buyer. Knight Frank acted for the vendor on the transaction, which reflected a net initial yield of around 5.5%.
Located around 2.5 miles to the west of Edinburgh city centre, Stenhouse Mill Wynd consists of two terraces of modern industrial units totalling 63,182 sq. ft. of space.
The site is home to a range of tenants, including Travis Perkins, the building materials retailer; electrical supplies distributor Rexel; and Chubb, the insurer.
John Rae, head of office and capital markets partner at Knight Frank Glasgow, said: “Investor demand for well-let industrial, trade counter, and logistics sites has been strong throughout the Covid-19 pandemic, despite the uncertain wider economic backdrop. There was a great deal of interest in Stenhouse Mill Wynd and we expect similar assets will continue to be an attractive proposition as we move further into 2021.
“Although we are in lockdown, deals are still managing to conclude and investors appear to be looking beyond our immediate circumstances for opportunities.
“Pricing has been similarly resilient for the right type of assets – broadly speaking prime offices, industrial property, and quality warehousing. We expect activity to pick up in the second quarter when a degree of certainty should return – notwithstanding the rapidly changing situation in which we find ourselves.”
Bridge contract awarded
The Clyde bridge will have short and long term benefits
The £79.5 million construction contract to build the first opening road bridge over the River Clyde has been awarded to civil engineer Graham.
The project is jointly funded by the UK and Scottish Governments through the £1.13billion Glasgow City Region City Deal. It will support around 700 jobs during its construction and generate hundreds of subcontract and supplier opportunities.
Renfrewshire Council Leader Iain Nicolson said: “We are excited by its potential in creating a vibrant attractive waterfront and connecting communities to their work, to hospitals and to education.
“Short-term, it will accelerate economic recovery from the devastating impact of the Covid-19 pandemic by creating jobs and boosting opportunities for suppliers and in the long-term, the new infrastructure opens up access to development opportunities on both sides of the Clyde.”
A twin-leaf swing bridge for vehicles, cyclists and pedestrians from Renfrew to the boundary between Glasgow and West Dunbartonshire forms the centrepiece of the project.
All planning consent is in place and construction is scheduled to start in Spring and take three years to complete, with the contract to be finalised later this month following conclusion of the procurement process.