Galbraith has advised Sol Zakay’s Topland Group on the sale of Thornbridge Distribution Centre, Laurieston Road, Grangemouth to property investment specialist Custodian REIT for £7.49m reflecting a net initial yield of 4.86% and reversionary yield of 5.50% from September 2023.
The property is let at £388,261 p.a. to leading UK timber distribution business, National Timber Group and is their Scottish HQ, production and distribution hub. The facility is sited at Junction 6 of the M9 Motorway on a generous 6.30 acre site and extends to 86,922 sq ft. The lease provides 18.2 years income with no break options, the rent reviews are five yearly and linked to the change in RPI.
David Sanderson, Topland Investment Director, said: “We implemented our asset management strategy and restructured the lease following a purchase four years ago, this created the opportunity for a successful exit.”
Will Sandwell, Investment Partner at Galbraith, commented: “The market for industrial investment property remains buoyant the marketing campaign generated competitive interest due to the long lease and inflation linked rent review structure, a sought after commodity in the current climate. Having advised Topland on the acquisition of this asset in 2018 it is great to be part of the final stage of the business plan”.
Ross Burns, acting on behalf of Custodian REIT added: “It was pleasing to secure Thornbridge Distribution Centre for Custodian REIT. It provides them with relatively low risk, long term income in the industrial sector with RPI geared reviews and at a capital value below the build cost.”
Galbraith advised Topland on the marketing and sale with legal advice provided by Dentons. Burns Property Consultancy Represented Custodian REIT with legal due diligence provided by DWF.