Clyde Gateway Trade Park acquired for £2.35m
A £100 million multi-let industrial property investment fund managed by property investment company JR Capital and industrial asset manager Chancerygate has concluded its first deal in Scotland with the acquisition of Clyde Gateway Trade Park in Rutherglen for £2.35m.
Comprising four units ranging in size from 5,000 sq ft to 7,000 sq ft, the trade park is located on Dalmarnock Road in Rutherglen, three miles south east of Glasgow in the heart of the Clyde Gateway regeneration area and provides quick access to the M74.
The current occupiers at the development are Evolution Fastners, a manufacturer of high performance fastners for the construction industry and vehicle conversion specialist Allied Vehicles.
The purchase by the fund brings its total investments to circa £50m comprising 650,000 sq ft of industrial space across 12 assets ranging from Rutherglen to Northampton.
JR Capital head of investments, Michael Ferris, said: “We are pleased to have completed our first site acquisition in Scotland and added Clyde Gateway Trade Park to our growing portfolio. The investment helps us gain access to an important market with strong underlying fundamentals.
“We have a strong appetite to invest in the industrial property market and are looking forward to an active year as we aim to expand our portfolio across Scotland and the UK.”
The fund has a further £50m to spend over the next 12 months and intends to raise additional capital. It is targeting multi-let industrial investments across the UK in lot sizes of £3m to £15m.
Chancerygate asset manager, David Tyson, added: “This investment is indicative of the confidence we have in Scotland’s industrial property market, with growing demand for high quality light industrial and warehousing set to sustain thanks to the strong diversity of demand in the market.
“Clyde Gateway Trade Park presented us with a good opportunity to enhance the geographical spread of our portfolio. The deal is a great way to kick off a year in which we’ll be looking to further expand the range of industrial property assets in the fund’s portfolio.”
Chancerygate is also a multi-unit industrial developer with 22 sites ranging from Livingston to Bournemouth. At the end of last year, the company announced it had exchanged contracts to acquire a 7.5-acre site in Sighthill, Edinburgh.
Subject to planning, Chancerygate and its joint venture partner, Bridges Fund Management, will redevelop the site to deliver 165,000 sq ft of industrial and warehousing space across 20 units ranging from 3,400 sq ft to 25,000 sq ft. Units will be available freehold or leasehold.
Colliers International advised Chancerygate and JR Capital on the acquisition, while Galbraith and Ryden acted for the vendor.