Edinburgh-based Kenmore Property Group has sold a 12,263 sq m (132,000 sq ft) distribution warehouse at The Phoenix, Paisley, to The Hamilton Portfolio for £8.4m. The deal represents an initial yield of 8.17% before capital allowances.
The Hamilton Portfolio comprises a group of wealthy investors including budget holiday tycoon John Boyle.
Before the sale, Kenmore also arranged a 20-year lease on the building at a rental of £5.50 per sq ft (£59.20 per sq m) with US company GeoLogistics. The current rent of £696,000 pa will rise to £726,000 pa following the completion of an additional 465 sq m (5,000 sq ft) of ancillary office space by the end of August.
Kenmore director Andrew White said: “Whilst the rent being paid by GeoLogistics is a record for The Phoenix, it is less than that being offered at comparable airport locations in the vicinity and therefore represents excellent value.
“This has been a great success for Kenmore and illustrates our proactive approach to property investment and asset management. Kenmore acquired the property in 1999 and through selective marketing to logistic companies, we were able to engineer the letting of the whole property to GeoLogistics, bringing inward investment and jobs into this fast-improving location.”
Andrew Lapping, managing director of Hamilton Portfolio, said: “This purchase underlines our commitment to acquire high-quality property in Scotland. We believe that the combination of prime location and good-quality build, underpinned by an established operator, provides a secure return on equity.”
Fisher Wilson represented Kenmore, while Montagu Evans acted for Hamilton Portfolio.
EGi News 23/08/01
