26th January 2015 back to news

Newhailes Industrial Estate, Musselburgh

Trade Counter Investment Sale

Warehouse sold at Newhailes Industrial Estate, Musselburgh

Final transaction for 2014 signals 300% increase in G+S investment activity


Graham + Sibbald has successfully sold a trade counter/warehouse investment situated in the industrial estate known as Newhailes, Musselburgh.


The property investment is held subject to a ground lease from East Lothian Council and the units which extend to 15,336 sq ft have been 100% occupied since they were built in 2001.  The units are now let and occupied by Howden Joinery Ltd with nine years remaining at a current passing rent of £96,100 pax.  The net rent after the deduction of the ground rent is £84,660.


The property was sold to a local private buyer and was concluded at £1.05m reflecting a NIY of 7.63%.


Ross Wilson, Associate at Graham + Sibbald, comments: “Prior to the sale we added value to asset by negotiating a lease extension with the tenant and our longstanding client was delighted to receive an offer at a price that reflected a sub 8% yield, we are now looking for suitable stock to re-invest some of the equity released from this sale.”


Sandy Gilmour, Head of Investment says: “The team is delighted to conclude 2014 and achieve a strong sale price for client.  This sale meant that investment activity was up by 300% year on year with a total of 12 deals, totalling £8.439m across industrial, retail, and office sectors within the Edinburgh/Lothian area.  As whole we saw strong growth from the investment team with a 45% increase in deal volume across the firm year on year.”