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Property update

LPF acquires Titan; rail facility opens; latest lettings

Lothian Pension Fund has acquired a prime logistics warehouse at Eurocentral in North Lanarkshire from Windward Titan.

The 123,850 sq ft distribution centre is one of the largest modern industrial buildings in Scotland.

The sale price of £14.3 million reflects a net initial yield of 5.01% and capital value of £116 per sq ft.

Titan is currently let to The Scottish Ministers (NHS) until 31st January 2031, at a rent of £766,094 per annum reflecting £6.19 per sq.ft.

Simon Cusiter, director of Lismore Real Estate Advisors which advised on the deal, said: “Eurocentral continues to go from strength to strength, resulting in upwards pressure on rents. The strong fundamentals of the location and sector, coupled with the quality of the asset offer scope for strong performance in the short to medium term.”

The industrial and distribution market in Scotland remains robust, reflecting occupiers demand for larger “big box” properties, such as Titan. The development pipeline is limited across the central belt of Scotland and further rental growth is anticipated, as supply remains tight.

Nicola Barrett, portfolio manager for Lothian Pension Fund added: We are pleased to have secured the asset for our portfolio and the strong property fundamentals reflect our strategy.”

MWM Consultants acted on behalf of Windward Titan.

Consolidation for Sodexo

Sodexo, operator of workplace facilities management and food services, is consolidating its operations at The Exchange, Aberdeen into 9,100 sq ft on one floor.

It has agreed a new ten-year lease at the headline rent of £20 per sq ft. Other occupiers in The Exchange include Sentinel Marine, John Crane Group, IHS Markit, Programme Marine, ODE Asset Management and Tidewater Marine.

The Exchange 2 will now undergo a comprehensive ‘exposed services’ refurbishment programme.

The letting was secured on behalf of the international business of Federated Hermes by Savills and joint agent FG Burnett.

Grangemouth rail facility opens

The Port of Grangemouth has completed and opened its £3 million rail freight hub.

The hub at Scotland’s largest port has a direct link to the port’s container terminal.

The new dual rail siding of 775 metres – previously 200 metres – can handle the longest freight trains on the UK network and is the first rail freight terminal to offer this and provide enhanced container / domestic intermodal options.

It is regarded as a particular benefit for customers in the food, drink and perishables sectors across the Scottish freight community.

Further letting at Academy Park

Ryden and Cargill Property Consultants have let a further unit at Academy Park on the southside of Glasgow following the recent trio of lettings at the site.

Existing tenant KubeNet has significantly expanded its operation by leasing the ground floor suite of Building 11 extending to 3,147 sq ft on a five year term. This takes the number of transactions on site to five since Kewbrook’s acquisition of the park within the last year.  

Other new tenants are Think Energy, Olive Communications and Glenwood.

Sonardyne renews Aberdeen lease

Moorfield Group, the owner and landlord of Aberdeen Energy and Innovation Parks, has agreed a five-year lease renewal with subsea technology company Sonardyne International at the Technology Centre in Bridge of Don.

Sonardyne has been based at the Energy Park since 2011 and the 3,628 sq ft of space is used for sales, training, equipment servicing and distribution. The company is based in Hampshire.

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