Investor appetite for logistics space continues unabated with a reported £66 million off-market sale of a 1 million sq ft warehouse let internet giant Amazon in Scotland.
South Korean investor KB Securities was reported to have paid around £66.8 million for the fully automated facility in Dunfermline – making the deal the largest single-asset industrial investment deal in Scotland.
Demand for similar properties remains strong and where investors cannot acquire standing units they are willing to invest in build-to-suit and even look to develop out speculative space as seen with specialist property investor Fortwell Capital, which sunk £23 million with mid-box industrial and warehouse developer Tungsten Properties enabling the development of a 290,000 sq ft, seven-unit industrial scheme in Witney, Oxfordshire.
Lambert Smith Hampton, acting on behalf of Knight Frank Investment Management, brokered the deal but have not released the sales figure.
The unit was let to Amazon on a 20 year lease in 2011 with rent reviews every five years to increase in line with CPI. The facility was bought from Dubai-based asset management group Rasmala who in turn acquired it from Tritax for £61 million in 2017 inclusive of fees. Going back Tritax had acquired the site from Infra Red Capital Partners for £42 million in 2012.
Alex Carr, head of industrial and logistics capital markets at LSH, said: “This transaction is a significant vote of continued confidence in the UK’s industrial investment market despite the coronavirus pandemic.”
Logistics centres have been attracting Korean institutional investors. In particular, the facilities leased to Amazon have been among the most sought-after targets. Last year Korean company IGIS Asset bought three Amazon warehouses in Bristol, Paris and Barcelona for a reported £388 million.
Ric Crane, partner at KFIM said: “This is our fifteenth acquisition for Korean clients. We continue to seek assets with similar investment characteristics in the UK.”