Eco shed

Eurocentral warehouse sold in £11m off-market deal

The unit is let to Scania

A warehouse unit at Eurocentral, let to the Swedish commercial vehicle manufacturer Scania, has been acquired off-market by a private investor in a deal in the region of £11 million.

The 43,598 sq. ft. property has been let to Scania on a 15-year deal to form its Scottish headquarters and warehouse facility serving the country. The property has been developed by UK developer West Ranga Property Group.

Knight Frank represented the buyer and Lismore Real Estate Advisors acted on behalf of West Ranga Property Group.

The building is among the most sustainable sheds in Scotland, hosting a range of energy efficient features including an air source heat pump system, electric vehicle testing and charging, photovoltaic panels, and high-performance windows to maximise natural daylight. 

Euan Kelly, capital markets partner at Knight Frank Edinburgh, said: “This asset was a relatively rare opportunity to acquire a prime industrial unit at Scotland’s top logistics hub.

“This is a unique property secured on a long-term lease with good prospects for rental growth in a sector that is firing on all cylinders – not only in Scotland, but across the UK.

“The building will also have outstanding green credentials, at a time when sustainability and energy efficiency are very much front of mind for investors.”

Scott Hogan, head of Scotland industrial and logistics at Knight Frank, added: “Across the central belt there is a relative lack of good quality Grade A industrial accommodation offering superb green credentials.

“Sustainability of warehousing is becoming is increasingly important for occupiers and investors alike.”

ESG shift for investors

New research from behavioural finance firm Oxford Risk reveals 15% of UK retail investors are planning to increase their allocation to funds that have a strong ESG stance, and a further 45% are considering such a move.

Oxford Risk says ESG can help investors avoid missing out on returns of between 4% and 5% a year on cash they do not invest because they are not emotionally comfortable with risk. 

However, many investors are more prepared to take the plunge if they feel they are getting social and emotional benefits from investing, alongside financial ones.

It says advisers can use ESG investing to help address the discomfort of investing, encouraging them to put their wealth to work, and thereby deliver better service for clients. 

Some retail investors now place such importance on ESG when investing that 7% say when reviewing potential funds to invest in, they now place a greater emphasis on ESG credentials than fees. Nearly one in four (38%) say they place equal importance on both when reviewing funds.  

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