Edinburgh's The Range superstore and Costa drive-through at Milton Link sold for £13m
A massive homewares store and drive-through coffee shop on the outskirts of Edinburgh have changed hands as part of a multi-million-pound property investment deal.
The seven-acre site at Milton Link to the east of the capital, next to the A1 dual carriageway, houses a 75,478-square-foot warehouse, which trades as The Range and a drive-through let to Costa Coffee.
The site has been bought by Urban Logistics, a stock market-listed real estate investment trust (REIT), for £13.2 million and the current tenants will remain in place.
It noted that the warehouse was let through to 2033 with five-yearly rent reviews. The drive-through building is let through to 2034.
The firm also announced the acquisition of a large distribution unit in Warrington, Cheshire for £8.5m
Chief executive Richard Moffitt said: “We are delighted to announce the acquisition of these high-quality assets in Warrington and Edinburgh which are well positioned to deliver essential goods that ‘last mile’ to customers and businesses in two important local markets.
“In line with our strategic focus of value enhancement, both assets offer asset management opportunities in the short to medium term given the low passing rents.”
Urban Logistics REIT is quoted on London’s Alternative Investment Market. The company has been established to invest in UK-based logistics properties with the objective of generating attractive dividends and capital returns for its shareholders.
Its investment strategy focuses on “strategically located smaller single let properties servicing high-quality tenants”.
Providing a rent collection update, the firm said it had received 99 per cent of rent due for the quarter to June. The remaining 1 per cent is expected to be collected “imminently”.