HTA Real Estate were pleased to have acted on behalf of a regional property company in the acquisition of the B&M Retail warehouse in Glenrothes, Fife.
The investment comprises a dominant retail warehouse extending to 31,826 ft² on a site of 2.24 acres with surrounding occupiers including Asda, Aldi, Jewson's, Kwik Fit, Morrisons and McDonald's.
The property benefits from open A1 planning consent and was acquired based on a sale & leaseback from B&M on the 20 year lease with open market reviews capped at 12% increases. The property was acquired at c. £5.90 m reflecting a net initial yield of c. 7%.
Douglas Cranston commented on the transaction saying 'The property dynamics matched the client's requirement with us managing to secure long income to a strong covenant on an asset with good residual fundamentals at a yield north of c. 7%. The acquisition off a low base rent will provide good cash flow returns for the client going forward."
