UBS Asset Management (UBS AM) Real Estate & Private Markets (REPM) business has completed five new lettings totaling 33,240 sq ft at Seven Hills Business Park in Edinburgh, Scotland.
Seven Hills is a prime, newly developed industrial estate that was acquired through a forward commitment transaction on behalf of a UK-focused diversified real estate fund in March 2019, and completed in December 2019.
The five new tenants derive from a diverse range of industries and include Crown Paints, the leading British paint manufacturer; Premier Windscreens, the Scottish experts in automotive glazing; Young Spirits, the Scottish bottler and distributer; and Wireless CCTV, the security company; as well as an established international exercise equipment brand.
Crown Paints and Premier Windscreens have each agreed to a 10 year lease with no breaks on 3,356 sq ft and 3,546 sq ft of space, respectively, while Young Spirits and Wireless CCTV have taken 8,119 sq ft and 3,423 sq ft of space on 15 and five year leases, respectively. The fifth letting, comprising a 14,796 sq ft unit, is also for an initial term of five years. The new lettings have been achieved at a 5% premium to the asset’s latest estimated rental value (ERV). A further 19,257 sq ft of accommodation is currently under offer.
Seven Hills is prominently situated within Sighthill Industrial Estate, regarded as Edinburgh’s principal and best industrial location, with excellent transport links. Following the latest lettings, six units ranging in size from 3,433 sq ft to 11,344 sq ft remain available at the asset, providing the local market with a much-needed supply of modern industrial and trade counter space. Allowing for space already under offer, there is strong interest in 31,905 sq ft of the remaining 43,249 sq ft at a significant uplift to quoting rental levels, demonstrating the strength of provision at the estate.
“Seven Hills has quickly proven itself to be a high performing asset, having attracted robust demand from leading occupiers looking for prime warehouse space in a strategic location to serve the Scottish market. Edinburgh’s industrial market remains characterized by a lack of supply, which has been exacerbated by the structural trends accelerated by Covid-19. This scenario leaves us confident in our ability to achieve full occupancy at this asset and access its full return potential for our clients,” said Howard Meaney, Head of Real Estate UK at UBS-AM Real Estate & Private Markets.