Tritax and Cedarwood purchase Aberdeen estate for £4.2m
14 December 2010
Tritax and Cedarwood Asset Management’s new industrial property joint venture, Tritax Industrial 2 LP, has completed a second acquisition at the Bridge of Don in Aberdeen.
Ryden, acting on behalf of Tritax Industrial 2 LP, acquired units 15-25 Denmore Industrial Estate in Bridge of Don from Hampshire County Council for £4.2m. The price reflects a net initial yield of around 8%.
The multi-let terraced unit estate extends to 53,100 sq ft and is fully let to eight tenants including Eurocell, Caprock and Greco Subsea.
Ken Shaw, Partner at Ryden said: “Our client was keen to acquire a property in Aberdeen in order to take advantage of the strong local economy and its prospects for further rental growth. Denmore is an excellent investment, as it is a well established and popular estate with the potential to provide opportunities to increase returns in the coming years through asset management initiatives."
Paul Jenkins, Director at Cedarwood confirmed: “We really like the Aberdeen market. There are limited voids, potential for rental growth, and with recent oil discoveries, ongoing strong demand for accommodation. We see this as a very safe place for our investors.”
Anthony Wyld, Head of Marketing at Tritax commented: “The purchase of Denmore has offered the private investors and SIPPs who invested in Tritax Industrial 2 LP the chance tobenefit from an income of 7.25% pa plus potential growth of around 5% pa over the five year term, which are compelling reasons to invest in the current lackluster economic environment.”
King Sturge acted for the vendor.
