An American investment company has snapped up an industrial complex in the Bridge of Don for £4.6million.
The New York-headquartered fund manager WP Carey acquired the 2.5 acre multi-unit complex from local property firm, West Coast Estates (WCE).
The development, at Broadfold Road in the Bridge of Don, Aberdeen, was initially acquired by WCE in 2006 and then refurbished. The development has four units, totalling 55,000 sq ft, and has been sold with three tenants from the oil and gas sector, Ziebel UK, Bilfinger Salamis UK and DOF Subsea UK.
WCE 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 WP 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 £12million 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 said it has an ongoing development pipeline totalling £10million, 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 supermarket Sainsbury’s, as part of the expansion of the Sainsbury’s Local network, have been completed.
Mr 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 Mr Mian and his brother Sarfraz Ali in 1991