Warehouse REIT buys Cargo Centre at Glasgow airport

The purchase price represents a net initial yield of 6.7% and a reversionary yield in excess of 7%.

The 150,000 square foot estate, which is located immediately adjacent to the airport and eight miles from Glasgow City Centre, is arranged across two detached warehouses that were purpose-built in 2000. It houses eight units let to five occupiers and generates a total net passing rent of £788,086 a year.

Current occupiers include Nippon Express, PJH Group and Alpha LSG. Some of the units are let on rents as low as £5.06 per square foot, which the company said provides "significant near-term opportunities" to drive rental growth.

Warehouse REIT investment manager Andrew Bird said: "The Air Cargo Centre in Glasgow is an exciting acquisition, highlighting our focus on buying well located warehouses close to important infrastructure hubs.

"There remains a constrained supply of airport related warehouses and yet the purchase continues to represent an investment value less than the cost of replacement. It is the belief of Tilstone that assets such as the Air Cargo Centre represent scarce commodities where rental growth will out-perform the wider market indices."

At 1140 GMT, the shares were down 0.4% to 101.05p.