Sale of Eurocentral facility underpins industrial market
A distribution hub at Eurocentral, recently let to the brewer and pubs chain BrewDog, has been acquired in a £12.3 million deal showing the continued strength of the industrial sector.
The new owner is Fiera Real Estate which purchased the 67,751 st ft unit on behalf of Fiera Real Estate Long Income Fund UK (FRELIF).
Pinnacle at 6 Brittain Way was previously occupied by the haulier Eddie Stobart and has been let to BrewDog on a new 20-year lease at an initial annual rent of £450,000.
BrewDog’s principal distribution centre, the 129,000 sq ft HopHub is immediately opposite the property and the new letting marks a significant expansion to the business’s distribution capability at Eurocentral.
Rupert Sheldon, head of core REIM at Fiera Real Estate, commented: “The acquisition of this property aligns well with the investment parameters of FRELIF. The purchase helps extend FRELIF’s overweight position to the favoured industrial segment of the market and enhances all of the fund’s key metrics of long, strong and progressive income.
“We remain acquisitive across our core mandates, with capital available to deploy into properties that share similar characteristics.”
Jamie Thain, investment partner at Galbraith, who advised on the purchase, added: “The market for industrial investment property remains extremely active across the country.
“This acquisition offered a rare opportunity to purchase a long secure lease over a prime distribution facility in Scotland’s Central Belt.”
Legal due diligence support and advice was provided by Shepherd and Wedderburn. MWM Property Consultants and Turcan Connell acted for the vendor.
Spectrum to expand brownfield site
Spectrum Properties is expanding a business park on a 1.8 acre brownfield site in south east Glasgow with a range of industrial and commercial units.
Since 1861 the site in Broad Street has had various incarnations including use as a cotton mill, an egg distribution factory, a printworks and a Fire Brigade storage facility.
Spectrum has received planning permission for up to five business units for general industry, storage, distribution and general business operations. The combined purchase and build-out cost will be around £3m.
Managing director Bill Roddie said: “Developments such as these are part of our contribution to the ongoing regeneration of Glasgow’s East End.”
Established by Mr Roddie in 1988, the company now has a portfolio valuation of £60 million and a turnover more than £5m.