Vast industrial site near Glasgow acquired in multi-million 'opportunistic' deal

A major 11-acre industrial site near Glasgow has changed hands for more than £7 million.

The vast manufacturing and warehousing facility on Old Govan Road, Renfrew, dates from the 1960s and extends to more than 200,000 square feet. Since taking it over in 1982, Howden has extended and developed the site to accommodate large-scale manufacturing.

London & Scottish Property Investment Management, the asset manager for the Regional REIT property trust, has acquired the Braehead site, occupied by engineering firm Howden, for £7.1m. The price reflects a net initial yield of 10.1 per cent after acquisition costs.

The vast manufacturing and warehousing facility on Old Govan Road dates from the 1960s and extends to more than 200,000 square feet.

Since taking it over in 1982, Howden has extended and developed the site to accommodate large-scale manufacturing. It now comprises five interlinked warehouses and houses 15 heavy-duty cranes.

In addition to the industrial units, the site has more than 18,000 sq ft of ancillary office accommodation over the ground and first floors as well as 230 parking spaces.

The area immediately surrounding the Howden site has witnessed a flurry of residential development in recent years in addition to commercial, industrial and retail activity. The Intu Braehead shopping centre is located nearby.

Stephen Inglis, chief executive of London & Scottish, said: “This opportunistic acquisition presents a very interesting and unusual opportunity, as property of this scale does not often come onto the market.

“It is well let to an excellent tenant with an international pedigree. There is strong occupier demand for property assets in excess of 100,000 sq ft across Scotland, especially sites with good access to the motorway network, and the scale of the site offers longer-term potential redevelopment for alternative uses.”

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