Investment firm Warehouse REIT, which is quoted on the UK Alternative Investment Market, has bought the property at Glasgow Airport Business Park for £5.3 million, reflecting a net initial yield of 6.3 per cent.
The three units, which range from 16,500 square feet to 21,600 sq ft, are occupied by two global transport, logistics and delivery companies and a craft beer distributor. The property generates a net rental income of £357,000 per annum.
Warehouse REIT, which is structured as a real estate investment trust, said Glasgow Airport Business Park was in a “prominent business location” adjacent to the airport, some nine miles west of the city centre.
It noted that occupiers benefited from strong local and global transport links, including plane, train, bus and car networks. The business park is located within a minute’s drive of the M8 motorway and should further benefit from the development of the proposed Glasgow Airport tram link.
Benefiting from strong industrial occupational demand throughout the pandemic, Scotland’s industrial market saw take-up in the first three quarters of last year reach more than four million sq ft, a 2.5 per cent increase on the same period the previous year.
Andrew Bird, managing director of the investment advisor Tilstone Partners said: “Glasgow is one of the UK’s most dynamic cities, with a growing workforce. Given ongoing e-commerce demands and a vibrant occupational market, it is forecast to see strong levels of warehouse investment activity and rental growth.
“The business park occupies a highly sought-after position and furthers the company’s exposure in what is a key market, whilst adding three strong covenants to the tenant roster.
“Whilst the company has now completed on its near-term pipeline identified as part of the recent successful placing, thereby deploying all of the equity raised, it continues to source attractive opportunities in line with its ambition to continue scaling and diversifying the portfolio, utilising the agreed revolving credit facility.”
Last month, Warehouse REIT announced it had successfully raised £45.9m by way of a placing to fund a near-term pipeline of acquisitions.