UBS Asset Management’s Triton Property Fund has bought Seven Hills Business Park in Edinburgh for around £15m, through a forward commitment.
The property was partially funded by proceeds from the sale of the fund’s Nova Centre industrial facility in Avonmouth, Bristol, which was sold for £9.6m.
Seven Hills, which was previously owned by Peveril Securities in a joint venture with Citivale, is located within Edinburgh’s Sighthill Industrial Estate. There is an existing 46,835 sq ft asset on the site comprising three high-specification units, all of which are let or under offer, with a weighted average unexpired lease term of nine years.
An adjacent new 76,000 sq ft development – which is due to be completed in the autumn – will provide 11 additional units measuring 3,360 sq ft to 14,700 sq ft.
Seven Hills is the 13th industrial property in Triton’s portfolio.
The fund’s strategy is to increase its exposure to industrial assets, which now account for around 42% of the portfolio, with a particular focus on urban logistics in major cities. The balanced fund also comprises offices, retail warehouses and student accommodation.
Jonathan Hollick, portfolio manager of Triton, said: “The prompt reinvestment of proceeds from the disposal of a non-core asset enabled us to gain access to this prime industrial property in a strong location, while increasing the quality of our overall portfolio.
“Edinburgh’s industrial market remains characterised by a lack of supply, making the development aspect of this investment particularly attractive, and leaving us confident in the asset’s ability to generate strong returns for the fund.”
Seven Hills was previously owned by Peveril Securities in a joint venture with Citivale. They were advised on the sale by Knight Frank. UBS-AM was advised by JLL.
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