Regional REIT completes sale of Wardpark, Cumbernauld – Regional REIT (RGL) has announced that it has exchanged and completed the sale of multi-let industrial estate Wardpark, Cumbernauld.
Uplift on disposal
The sale price of £26.4m was 21.1% above the December 2017 year end valuation.
Wardpark, Cumbernauld, which Regional REIT acquired in 2013, covers a total of 829,851 sq ft and is located approximately 13 miles north east of Glasgow.
Regional REIT report that Wardpark has benefitted from a “proactive asset management strategy”, which has resulted in improved occupancy and high retention rates among tenants, approximately 30% of which have had a presence on the estate for over 15 years. They also state that initiatives undertaken include the rolling refurbishment of vacant units, the creation of a trade counter area on the estate and the re-gearing of core holding leases. Tenants include Virgin Media Wholesale, Screwfix and Balfour Beatty.
Comment from Stephen Inglis, Chief Executive Officer of London & Scottish Investments Limited, the Asset Manager to Regional REIT,:
“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.
“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. We are delighted with the performance of the asset under our ownership and look forward to recycling the capital in new assets where we can apply our active asset management strategies.”
More on Regional REIT
Regional REIT is a UK regional office and industrial property focused real estate investment trust. It is a joint venture between London & Scottish and Toscafund investing in regional property. A pre-existing fund was listed and £80m worth of existing shares have been sold to new investors.
RGL : Regional REIT completes sale of Wardpark, Cumbernauld