Cyan Properties Ltd has sold Wellington Circle, the retail warehouse investment in Aberdeen to House of Hiranandani for £22.5 million, representing a net initial yield of 6.01%.
The 111,988 sq ft (10,403 sq m) retail warehouse is fully let to IKEA Ltd, Booker (trading as Makro), Pure Gym and Starbucks, generating £1.4 million per annum with a weighted average unexpired lease term in excess of 13 years.
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Wellington Circle is located within Altens on the south side of Aberdeen immediately adjacent to the A956 Wellington Road which links the A90 to the south and Aberdeen City Centre to the north.
Nick Penny, head of Scotland at Savills and director in the investment team who acted forCyan Properties, said: “Wellington Circle offers modern, well located retail warehousing fully-let to renowned household names showing strong trading performance and the strength of the investment is reflected in the price achieved.
“Aberdeen is an internationally recognised energy market with an affluent and captive market. Recent turbulence in oil prices had a knock-on effect on Aberdeen’s property market and investment volumes. However as the price of oil continues to rise once more – currently hovering around $77 a barrel – investors are recognising an opportunity to acquire prime assets at a comparative discount to similar assets elsewhere in the UK.”
House of Hiranandani was advised by Colliers. Savills acted jointly with Lewis and Partners.
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