SWIFT RELETTINGS REINFORCE STRONG DEMAND ACROSS HILLINGTON PARK

The three transactions have helped increase occupancy across the estate to 96.5% while also achieving headline market rents, reducing void periods and ongoing void holding costs.

At a time when the Hillington Park investment portfolio is being marketed for sale, the asset management team adopted a proactive approach to securing lettings on vacant units. These properties would normally be refurbished before being marketed but further capital expenditure is currently on hold. Instead, incoming occupiers agreed to undertake refurbishment alongside their own fit-out works in return for enhanced rent-free incentives..

The largest of the transactions saw Scot Hoist, a leading supplier of construction hoists and transport platforms, relocate from premises in the east of Glasgow to a modern 10,135 sq ft industrial unit with a large yard at 21 – 23 Earl Haig Rd.  The new 10-year lease was completed just over six months after the previous occupier vacated at a headline rent of £12.50 psf.

In addition, long-standing occupier Affordable Golf expanded its multi-unit presence on the estate by taking 50 Kelvin Ave just two and a half months after the previous tenant vacated, increasing its total footprint across the estate to more than 41,000 sq ft. As well as leasing the additional unit, the asset management team extended the leases on Affordable Golf’s other units to 2031.

Meanwhile, at 24 Napier Rd, where the 2,661 sq ft unit recently became vacant through a previous occupier insolvency, the asset management team were quick to work with neighbouring occupier The Tile & Bathroom Company to double its footprint, securing a new letting just two months after the property became vacant.

Derek Aitken, Senior Asset Manager at Hillington Park said: “The speed of these relettings reflects both the strength of the Glasgow industrial market and our revised strategy to secure transactions that are accretive to investment performance at a time when our owners are seeking to sell the investment. These three businesses were very keen to secure these units to facilitate their growth and were keen to work with us on lease packages where they could take enhanced rent-free incentives in return for taking on responsibility for refurbishing the space.

“With occupancy now up to 96.5% and a limited supply of industrial accommodation across the region driving further rental growth, the case for new industrial development becomes ever stronger.”