Commercial Property
Development & Investment
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North West based property investment and development company, Patrick Properties is on the acquisition trail again having acquired Sainsbury’s 220,000 sq ft chilled and ambient distribution facility in East Kilbride, Scotland. The ambitious company agreed a deal with former owners, AVIVA (formerly Norwich Union) at £12.9 million, reflecting a net initial yield of 8%.
Sainsbury’s – which uses the unit to service the whole of Scotland, Northern Ireland and Northern England – has a further 14 and a half years left on its existing lease.
Andrew Dickman, Managing Director of Patrick Properties, says: “We are pleased to have secured this latest building, which follows our recent £10.6 million acquisition of the Royal Mail distribution unit in Wakefield. Despite the economic gloom, we believe that there are deals to be done and are adopting a strict policy to acquire similar properties over the coming 12 months as part of our ongoing long term investment strategy. We have been actively looking for food, healthcare and government occupied buildings, which tend to be more ‘recession proof’ as well as local businesses backed by people we understand. We are currently considering a number of other very interesting potential deals and intend to continue to add to our expanding portfolio in the coming months.”
