May 15, 2012
Highcross has sold the leasehold interest in the 124,000 sq ft Murcar Industrial Estate in Aberdeen in an £8.28m deal. The estate was sold in an off-market transaction to a client of CBRE Global Investors.
The Murcar industrial estate, which is located in the city’s Denmore Road, Bridge of Don area, includes two office/industrial facilities and an estate of eight terraced industrial units. It was acquired by Highcross in July last year, as part of a £20m portfolio of industrial and office properties across Scotland. Key occupiers include Fugro Survey and Sparrows Offshore.
Since acquiring the properties, Highcross has re-geared existing leases and let the remaining available space to international energy saving business, Mark Group, at a new headline rent of £8 per sq ft. The sale reflects an initial yield of 8.4%.
Mark Evans, who heads Highcross’ Scottish team comments: “The decision to sell the estate reflects our success in achieving our objectives of re-gearing existing leases and letting the remaining vacant space. The enhanced value achieved also reflects the continuing strong market in Aberdeen for good quality industrial space.”
Highcross was advised by Tom Fulton of Colliers International who said: “Highcross has efficiently enhanced the value of the investment. With strong occupational demand and sustained growth, the Aberdeen industrial and office markets are particularly buoyant and the city continues to attract investment from a wide range of UK and global buyers. This sale is one of a number of significant transactions currently taking place in Aberdeen, a city which is very much now establishing itself as a core UK location for institutional investment.”
James Horgan at CBRE Global Investors comments: “We have acquired an estate with a robust income stream and strong rental growth prospects. We believe this estate will continue to deliver good performance and above average returns.”
CBRE Global Investors was advised by Gary Cameron at Inglis Howie.