Knight Frank delivers as Royal Mail facility changes hands

Royal Mail’s Scottish distribution centre in Wishaw has changed hands in a near£9 million deal, brokered by property adviser Knight Frank.

The facility, located in the town’s Netherton Industrial Estate, has been purchased by an unnamed Uk-based private investor. Its previous owner was another private investor and the £8.76m transaction represents a net initial yield of 5.75 per cent.

Stretching to more than 112,000 sq ft, the distribution centre has a dedicated loading dock rail platform connected to the west coast express line. The modern industrial unit also features 12 dock loading doors. Knight Frank said Scotland’s industrial investment market had seen strong levels of interest in the past 18 months, driven by a shortage of supply, tenant demand, and a scarcity of new development.

Douglas Binnie, associate at Knight Frank, said: “There’s an insatiable appetite from investors for industrial property in Scotland.

“The growth of online shopping and the lack of new industrial space is combining to create a booming market – yields continue to sharpen and valuations are rising.

“While returns in Scotland are catching up with England it still offers a relative discount, which is attracting investment.

“Interest is also extending beyond the traditional prime locations in the west of Scotland.” 0 The distribution centre is one of Royal Mail’s key hubs