The following illustrate the type of property we target, the high level of income generation and scope for capital enhancement through active management.
Birkenshaw Retail Park, Uddingston
The property comprises 3 blocks of retail warehouses that provide 6 units totaling c65,000 sq ft on a well established, busy retail park outside Glasgow. The holding has been assembled through 2 purchases and since then vacant space has been let to a national covenant and lease expiries extended and rent reviews carried out. The asset continues to be managed for its significant rental and capital growth potential and produces a high income yield, comfortably in the double digits. There are now 6 tenants on leases with unexpired terms of 3-10 years. A fixed rate bank loan was also negotiated and secured which should enhance overall returns.
Strathclyde Business Park, Glasgow
The property comprises 3 modern industrial units that were let to Scottish Enterprise on a short lease. Terms were agreed to purchase the property at a price reflecting the short unexpired lease term and since then the manager has managed to grant 3 new leases over the whole propety for 10 - 15 years with upwards only rent reviews, effective from the expiry of the Scottish Enterprise lease. After rental incentives expire the rental yield will be over 13%. The manager also secured a bank loan at the time of purchase from Santander. This loan is at a fixed low rate of interest and is expected to enhance the return on equity and enables the investment to generate a high level of income return of over 15% pa net of all management charges.
Excelsior Park, Wishaw
Following an initial investment in 2 modern industrial units let to Siemens plc and Astute Electronics a substantial, diversified holding has been assembled comprising a further 9 units that total c110,000 sq ft in a range of unit sizes of 5,000 sq ft to 25,000 sq ft let to tenants that now also include Howden, BSS, Travis Perkins, Wurth UK with a balanced lease expiry profile. The current rent roll is circa £500,000 per annum with scope to significantly increase this to circa £600,000 per annum by reletting recently refurbished space. The manager secured a bank loan from Santander against the property at a low interest rate which is expected to enhance returns. Current income returns are approaching 20% on equity invested (net of all management charges) and the asset is well positioned for capital growth.