The sale of a multi-million pound Aberdeen commercial property development has demonstrated Scotland’s appeal to the international investment community.
West Coast Estates, based in Aberdeen and active nationwide, has concluded a £4.6million transaction in which a 2.5 acre multi-unit complex has been bought by New York headquartered fund manager W. P. Carey. The global player has in excess of $9 billion of assets under management worldwide.
The development, at Broadfold Road in the Bridge of Don, Aberdeen, was acquired by West Coast Estates in 2006 and was the subject of a programme of refurbishment. It comprises four units, totalling 55,000 sq ft, and has been sold with three tenants from the oil and gas sector.
West Coast Estates director Iftikar Mian said: “We are delighted to have completed this deal, which demonstrates the confidence there is in Aberdeen and Scotland as an investment market. From a West Coast Estates perspective it is a very positive outcome, with a significant return on our initial outlay and following several years of rental income, and for W. P. Carey it is viewed as a good fit with their portfolio in the UK.
“The low oil price has understandably created a sense of uncertainty across a wide range of sectors – but this deal shows inward investment to Aberdeen is continuing. Private and institutional investors recognise the medium to long term potential and as such remain very active as part of a balanced approach. There was also some hesitancy in the Scottish market around the time of the referendum but we have seen considerable traction since then.
“Including this latest sale, West Coast Estates has disposed of more than £12m of property in the past 12-months and that capital has flowed back into the business to be used to target fresh opportunities throughout the country.”
The firm has an ongoing development pipeline totalling £10m, which includes work in the industrial and retail sectors as well as mixed use schemes in Edinburgh, Perthshire and Aberdeen. A number of projects with Sainsbury’s, as part of the expansion of the Sainsbury’s Local network, have been completed.
Iftikar Mian added: “We see fantastic potential, both in commercial property and in mixed use projects, and are in a very strong position as a cash-positive business ready to react quickly to attractive development prospects. We have the advantage of being able to invest without gearing, which broadens the options open to us when it comes to future projects.”
West Coast Estates, a private family-owned property investment and development company based in Aberdeen, was founded by Iftikar Mian and his brother Sarfraz Ali in 1991. It is established in sectors including commercial and residential development as well as community projects. For further information about West Coast Estates, contact Expand01224 639 683 or visit www.westcoastestates.co.uk .