IN A successful off-market transaction, Central Assets LLP have sold Western Campus, Strathclyde Business Park to Stenprop, for £4,600,000 exc VAT.
Western Campus was completed in 2016 and comprises a multi-let industrial estate of 15 units totalling 44,234 sq ft, with a range of national and local occupiers, including Stothers, GTC, Ainscough Industrial Service and NG Bailey. The total annual passing rent of £333,454, which includes rental guarantees on two of the three vacant units, equates to a rent of £7.98/sq ft and reflects a net initial yield of 6.8% on the purchase price.
Central Assets LLP is a joint venture between Glasgow based CBC and Fusion Assets, the arms-length development company of North Lanarkshire Council. This is the second estate to be successfully developed and sold by the joint venture partners, following the disposal of Dundyvan Enterprise Park, Coatbridge in 2017.
Murray Collins, Managing Director of Fusion Assets stated: “I’m delighted to have achieved another successful outcome working in partnership with CBC and the Scottish Government’s SPRUCE fund, who provided the initial loan. The sale of Western Campus will allow the loan to be repaid and the remaining receipts to be recycled in further development activity bringing jobs and investment into the local area.”
Julian Carey, Executive Property Director of Stenprop said: “We are delighted to have worked with CBC and Fusion Assets on the successful conclusion of this transaction. Western Campus is a modern, high quality industrial estate in a prime industrial location in Glasgow, and we are excited to get to work on leasing the remaining units and working with the occupiers on site. This is the 6th multi-let industrial property we have acquired in Scotland over the last few years, and it remains a market where we would like to acquire further estates on the back of strong economic fundamentals.”