EDINBURGH’S only Wickes store has been sold for over the asking price in a £6 million deal described as underlining the appeal of urban retail warehousing.
The 21,935 sq. ft. property on Stevenson Road is let to building supplies provider Wickes on a long-term lease and had been marketed for just over £5.6 million. It has been acquired by a UK-based family trust.
Knight Frank acted for the vendor, a UK property fund, with the deal representing a net initial yield of 5.1%.
The property is said to have attracted a ‘high level’ of interest, with six bids at its closing date. The five underbidders were all Scottish high-net-worth individuals and entrepreneurs.
Alasdair Steele, head of Scotland commercial at Knight Frank, said, “There was a relatively deep buyer pool for 45 Stevenson Road given its location, long-term income potential, and the strength of its sole occupier. It is relatively rare an asset like this comes to the market, but we expect similar opportunities to emerge in the months ahead.
“For family trusts and high-net-worth individuals, wealth preservation is a big motivator in the current macro-economic environment. The Wickes building is a great example of a property that can act as a hedge against inflation through an attractive level of income while preserving capital.”