£26.4m sale of Cumbernauld’s Wardpark completes

The estate, acquired in 2013, covers a total of 829,851 sq ft and is located approximately 13 miles north east of Glasgow.

The sale price of £26.4 million was 21.1 per cent above the December 2017 year end valuation.

Wardpark has benefitted from a proactive asset management strategy, which has resulted in improved occupancy and high retention rates among tenants, approximately 30 per cent of which have had a presence on the estate for over 15 years. Initiatives undertaken include the rolling refurbishment of vacant units, the creation of a trade counter area on the estate and the re-gearing of core holding leases. Tenants include Virgin Media Wholesale, Screwfix and Balfour Beatty.

Stephen Inglis, chief executive officer of London & Scottish Investments Limited, the Asset Manager to Regional REIT, said: “We are pleased to conclude the sale of Wardpark, which reflects our opportunistic approach to recycling capital and supports our strategy of downselling assets in Scotland to allow the REIT to target acquisitions in England. It’s another example of our track record of increasing asset value through active asset-management.

“The market continues to demonstrate robust investor demand for multi-let industrial assets and the sector’s ability to deliver increasingly attractive returns. The sale of Cumbernauld at £4.6m above its last valuation price shows again the significant differential between valuation and the price the market is willing to pay. We are delighted with the performance of the asset under our ownership and look forward to recycling the capital in new assets where we can apply our active asset management strategies.”