A client of DTZ Investors has acquired an asset leased to Waitrose and Kwik Fit in Edinburgh for a price in excess of the £18.15 mln (€22 mln) asking price.
Located at 145 Morningside Road and 7-13 Falcon Road, the branches of Waitrose and Kwik-Fit are among both brands’ strongest trading locations. Waitrose occupies 33,347 ft2 (3,000 m2) of retail space, while Kwik-Fit leases the adjoining 12,795 ft2 garage.
The property was sold by a client of LaSalle, represented by Savills. Knight Frank acted for the purchaser.
Last month, Knight Frank said that investment in Scottish commercial property firmed up in the third quarter, reaching £1.21 bn for the year to date, as political stability following the election and a first cut to interest rates created a more stable backdrop. Retail was the most active sector, with £446 mln of deals.
Euan Kelly, capital markets partner at Knight Frank Edinburgh, said: 'Both Waitrose and Kwik-Fit trade exceptionally well from their Morningside locations, with little in the way of nearby competition and an affluent local population.
'Broadly speaking, supermarkets are performing well, supported by solid fundamentals and long-term average growth of 4.1% in grocery sales, and we’re seeing strong demand from investors for these types of assets.'
Ewan Stewart, acquisitions manager, DTZ Investors, said: 'We are delighted to complete on this acquisition. The fundamentals of the long leases to tenants with strong trading performance in an affluent neighbourhood in central Edinburgh are exactly where we are looking to invest. We look forward to doing further acquisitions with similar fundamentals.'
