A well-known retail park in East Kilbride has changed hands for £12.25 million, representing a net initial yield of 10.49%.
East Kilbride Retail Park was bought by London-based Corum Asset Management, who were represented by Knight Frank, while Cushman & Wakefield acted on behalf of the vendor Aberdeen Standard Investments.
The 59,404 sq. ft. site is part of a substantial retail warehouse cluster in East Kilbride, adjacent to Kingsgate Retail Park, with the current tenant line up including The Range, Pets at Home, Currys PC World and Halfords.
Rhu Wishart, Surveyor at Knight Frank Edinburgh, said: “The deal for East Kilbride Retail Park shows there is still an appetite for well-located retail warehouse assets, despite the challenges posed by online shopping. It also underlines investors’ desire for long-term income supported by strong covenants while macro-economic conditions remain uncertain.
“East Kilbride is also set to benefit from new residential and infrastructure developments over the course of the next few years through the Glasgow City Region Deal, which can only have a positive knock-on effect for retailers and the retail park itself.”