Knight Frank closes £5.2m Cambuslang Gate deal
One of Cambuslang’s largest commercial properties, Cambuslang Gate, has changed hands in a deal brokered by Knight Frank.
The independent real estate consultancy has advised a private UK-based investor on the £5.2-million purchase of the building from Canmore. The transaction represents a net initial yield of 8.25 per cent.
Cambuslang Gate, which consists of 36,020 sq. ft., is wholly-let to South Lanarkshire Council.
Spread over three storeys, it comprises Grade A office accommodation, occupied by a range of frontline council services; a community library; and a doctors’ surgery, in addition to 47 car parking spaces.
The deal is the latest in a series of transactions involving private investors in Scotland. According to Knight Frank’s analysis, 2016 saw an unprecedented level of foreign investment, with around two-thirds of investment in Scottish commercial property coming from international money. A significant proportion of it is thought to have been from private buyers.
Douglas Binnie, associate at Knight Frank, said: “The sale of Cambuslang Gate is another example of investors, particularly private, high-net-worth individuals and families, seeking out secure long-term income. In the absence of much activity involving UK Propcos and funds, they see opportunity in Scotland. In many cases, they are coming in and achieving significant value from assets.
“It’s also further evidence that investors are increasingly willing to look beyond the main conurbations of Edinburgh, Glasgow, and Aberdeen for opportunities. A yield of over 8% is a significant discount compared to other parts of the UK, London aside, and we’d expect to see further interest in traditionally non-prime areas, as other forms of investment continue to generate low returns or prove volatile.”