The former Motorola complex in Bathgate, West Lothian, has been sold to Henderson Global Investors for £11m, on a part sale and leaseback basis.
Henderson, acting on behalf of Pearl Assurance and development partner Scottish Capital Group, plans a £3m redevelopment of the 500,000 sq ft (46,450 sq m) complex. The scheme, built in the 1990s, is thought to have cost £48.5m to construct.
Set to be the second largest facility of its kind in Scotland, the building is to be subdivided into office and distribution space.
Guy Morrell, chief investment officer, global property at Henderson said: “Once our regeneration plans are in place, the Motorola building will provide world class facilities in a secure environment. We expect this property will generate attractive returns.”
Henderson said the facility would offer very competitive rents. It is believed that industrial rents could be as low as £3.50-5 per sq ft – up to 50% cheaper than in neighbouring Livingston.
Office rents are tipped to be set at around £8-10 per sq ft, depending on covenant and the type of lease. Edinburgh office rent levels are currently £20-25 per sq ft.
Motorola will be leasing back 25,000 sq ft (2,450 sq m) of offices in the building.
Negotiations are currently underway with two other tenants, one believed to be Bank of Scotland, who have expressed strong occupational interest.
Knight Frank acted for Henderson and is retained as letting agent while Chesterton represented Motorola.
EGi News 29/05/02
