Cumbernauld estate changes hands in £26m property deal

● Wardpark owned by Regional REIT since 2013 ● Firm looking to ‘downsell’ assets north of the Border

Property trust Regional REIT has agreed the sale of a major industrial estate in Cumbernauld for more than £26 million.

The deal is the latest for Scotland’s commercial property investment market, which hit a record high in the first half of 2018, thanks in part to the resurgence of domestic investors.

The Wardpark industrial estate, which was acquired by Regional REIT in 2013, covers 829,851 square feet. The sale price of £26.4m was 21.1 per cent above the December 2017 year-end valuation, the trust added.

Regional REIT, which is structured as a real estate investment trust with its shares listed on the stock market, said the site had benefited from a “proactive asset management strategy”, resulting in improved occupancy and high retention rates among tenants. Almost a third of those businesses have had a presence on the estate for more than 15 years.

Initiatives undertaken during the trust’s period of ownership have included the refurbishment of vacant units, the creation of a trade counter area on the estate and the regearing of core holding leases. Tenants include Screwfix, Virgin Media Wholesale and Balfour Beatty.

Stephen Inglis, chief executive of London & Scottish Investments, 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.”

He added: “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.”

The buyer was not disclosed by the firm yesterday.

Last week it emerged that investment in Scotland’s commercial property market had hit a record high in the first half.

Following a sluggish first quarter, a record total of £1.4 billion was invested in Scottish commercial property between January and June, according to property consultancy JLL. This is an 86 per cent increase on the same period last year and well above the UK average volume growth of 23 per cent.

The research showed that the boost had been driven primarily by the major cities, with £692 million traded in Edinburgh and £344m in Glasgow. Domestic investors played a key role in the activity.