Four-deal thriller for King Sturge
24 June 2008
Recent industrial deals concluded in the west of Scotland
With Scotland taking no part in the European Championships, Cass Hibbert from the King Sturge Glasgow office has kept his eye on the ball and netted four recent industrial deals in the west of Scotland, as follows:
- FORMER REMPLOY UNIT SOLD TO MORALE HOME FURNISHINGS: A purchaser has been secured for the former Remploy building at 24 Watt Road, Hillington Industrial Estate, with a price in excess of the £650,000 being attained. Morale Home Furnishing Ltd, an internet-based retailer has purchased the detached industrial unit that extends to 19,015 ft² and also offers offices and a secure yardage area. It will be used as a storage and distribution base for Morale, which is one of the fastest growing online furniture company’s in the UK. Commenting on the sale, Cass said: “This deal was concluded very quickly, as Morale was keen to secure the unit, due to the excellent logistics location within the ever-popular Hillington Park.” The sale of the unit follows the recent announcement that Remploy, the disability firm was closing factories across the UK, as part of a Government cost-saving initiative. A total of 32 of Remploy's 83 factories will close and a further 11 will merge with other sites under the plans. King Sturge advised Remploy, whilst Morale Home Furnishing was represented by Colliers CRE.
- UNIT 1, 150 HELEN STREET, GOVAN: On behalf of the Industrial Property Investment Fund (IPIF), this unit has been leased to trade joinery company Howdens on a ten-year deal at an annual rental of £26,030 (£5.50 per ft²) The unit extends to 4,734 ft². A five-year lease extension has been agreed on the existing 14,832 ft² of space already occupied by Howdens at Units 2 and 3 on the estate and the total rental income is now in excess of £100,000 per annum. Commenting on the deal, Cass said: “Howdens were keen to expand in this highly-successful location and are delighted to secure the additional space at Unit 1, which comes complete with 25% trade counter consent.” King Sturge and FG Burnett advised IPIF, whilst Howdens was represented by Colliers CRE.
- FARMELOAN ROAD, RUTHERGLEN: Plumbase has sold a one acre site at Farmeloan Road to Auto Equipment Pieces, which consists of office accommodation, yardage and redundant warehouses. “King Sturge was initially instructed to lease the surplus space” comments Cass. “However, in light of the buoyant fuehold market towards the end of 2007 and the strategic east end location of the property, we advised our client that the site would be well-received in the market. Offers were initially sought in excess of £450,000 but we were delighted to go to a closing date, receiving several offers in excess of £600,000". Plumbase was advised by King Sturge whilst Auto Equipment Pieces was represented by Allison & Lightbody.
- UNIT 1, 39 UNDERWOOD ROAD, PAISLEY: King Sturge has secured an additional unit on behalf of Plumbase in Paisley, which extends to 4,031 ft² plus ample car parking. It has been leased from City Electrical Factors (CEF) with Plumbase agreeing a fifteen-year deal with a ten-year break option at an annual rental is £21,450 (£5.30 per ft²). Plumbase will utilise the unit as an additional trade counter operation. Commenting on the deal, Cass said: “Plumbase was keen to expand operations in Paisley and this unit provides an ideal road side trade counter facility.” King Sturge advised Plumbase, whilst City Electrical Factors (CEF) was represented by Gerald Eve and Checkley & Co.
