Aberdeen Standard Investments' Standard Life Pooled Property Pension Fund has bought a multi-let industrial estate at Glasgow's Clyde Gateway East from MEPC for £10.65m from MEPC, reflecting a yield of 6.1%.
The estate comprises four units as well as two plots that will be developed over the next 12 months in partnership with Clyde Gateway –the tie up between Glasgow City Council, South Lanarkshire Council and Scottish Enterprise.
The estate comprises 72,511 sq ft fully occupied by BT, Dentec Scotland, Glacier Energy Services Holdings and Greencore Food To Go.
Clyde Gateway is a major regeneration project, focussed on 840ha on the east side of Glasgow.
David Stewart, Fund Manager for Aberdeen Standard Investments, said: “The acquisition of Clyde Gateway East provides the fund with an attractive income and the ability to add further value by developing the remaining plots. We will start development as soon as possible and are confident of attracting more high calibre businesses to Clyde Gateway East, given its accessible location within Greater Glasgow.”
Ian Manson, Chief Executive of Clyde Gateway said: “Clyde Gateway East is one of the few locations where industrial units have been built speculatively in recent years, and has been extremely successful in attracting high-quality businesses to the area.
“We are delighted that such a high profile investor has recognised the fantastic business benefits on offer here. Aberdeen Standard Investments’ acquisition and commitment will further boost the ongoing physical, economic and social regeneration of the Clyde Gateway area, creating more jobs during both the construction phase and once the new units are occupied.”
Ian Dougherty, of Ryden, added: “We are delighted to have acted for Aberdeen Standard Investments in this acquisition. Clyde Gateway provides our client with the rare opportunity to acquire income producing units together with the ability to develop new units on the development sites to take advantage of the current shortage of modern industrial supply in the Glasgow market."
The Standard Life Pooled Property Pension Fund was represented by Ryden. CBRE acted for MEPC.