A vast postal sorting facility on the outskirts of Edinburgh has changed hands in a bumper £25 million property investment deal.
Hines, the global property firm, said that its Hines Global Income Trust had acquired the Royal Mail sorting warehouse on the capital’s Sighthill Industrial Estate from RPMI RailPen.
The 215,745-square-foot facility, which is occupied by the Royal Mail, is located adjacent to Hermiston Gait Retail Park to the west side of the city. The property serves as the collection and sorting point for all mail from the east side of Scotland and employs more than 700 people on site.
Hines said the acquisition marked the third investment in UK logistics assets by the trust during 2019. Hines Global acquired a 139,387 sq ft building in Milton Keynes, occupied by men’s clothing retailer Charles Tyrwhitt, and a 270,248 sq ft distribution facility in Bristol, occupied by Currys and PC World owner DSG Retail, in November.
Sherri Schugart, chief executive of Hines Global, said: “We are excited to expand Hines Global’s presence in the UK logistics market by completing our third strategic logistics acquisition in the UK and our ninth acquisition worldwide this year.
“We continue to see attractive opportunities to acquire high quality assets in strategic markets globally.”
Greg Cooper, Hines UK director of industrial and logistics, added: “The site is a key location for Royal Mail and is well positioned to serve Edinburgh and the wider east of Scotland. We continue to see value in logistics assets that benefit from close proximity to established distribution nodes and good tenants.”
ACRE Capital Real Estate advised Hines Global on the deal and Knight Frank represented RPMI Railpen. RPMI Railpen is responsible for the safekeeping and investment of some £30 billion on behalf of the Railways Pension Scheme’s 350,000 members.
Hines also acts as asset manager of Livingston’s The Centre shopping complex.
In further property-related news, marine environmental consultancy Cleanship has expanded its headquarters by taking space at Topland’s 8 Nelson Mandela Place development in Glasgow.
In a deal brokered by Knight Frank, the firm has secured 5,100 sq ft on the third floor of the city centre building, moving from its previous location at Pacific Quay.
Chris McMenemy, co-founder and managing director at Cleanship, said: “We have ambitious plans for expansion and required a headquarters that can facilitate our growth.
“We have plans to create a unique workplace that not only reflects what Cleanship is about as a business, but helps us to get the best from our talented team.”
Sarah Hagen, associate at Knight Frank, said: “Topland’s approach to 8 Nelson Mandela Place has been highly successful, pushing up rents and maintaining a high level of interest from potential occupiers.
“The area, as a whole, has undergone significant changes and will continue to do so with the redevelopment of Queen Street Station nearby.
“It is quickly becoming much more popular with businesses and we expect there to be more lettings activity to come,” he added.