Oakbank Trading Estate, Glasgow.
Ribston purchased Oakbank in August 2017 from an institutional investor having been in the same ownership for 12 years. The estate is situated on Garscube Road, less than a mile from Glasgow City Centre and a short drive to Junction 16 and 17 of the M8. Through active, focused and effective asset management, Ribston has substantially increased rents, reduced the void and set new record rents for the Glasgow market. Oakbank has been transformed into a popular, well let estate occupied by strong covenants and rapidly growing new businesses.
Over the past 15 months Ribston has completed six new lettings, three lease renewals and two rent reviews through which the total Contracted Rent has increased by £150,000 p.a. (30%).
Estate improvements, such as landscaping and signage, strategic deployment of capital expenditure, combined with effective marketing has decreased the void by 15%. There is now only one small vacant unit on the estate for which demand is strong at the quoting rent of £10psf.
Contracted rents achieved to date exceed those on purchase by an average of 30%.
Units of < 2,000 sq ft have been let at new rents between £9 psf and £10 psf.
New rent of £8.50 psf has been achieved on a 5,000 sq ft unit.
New rent of £7.50 psf has been achieved on a 10,000 sq ft unit.
New rent of £7.00 psf has been achieved on the largest unit on the estate.
At purchase the largest unit on the estate was in poor condition and had been vacant for several years. An extensive refurbishment project, including a new roof was completed in Q2 2018 and has subsequently been let to The Vegan Kind, the fastest growing Online Vegan Supermarket in the UK, on a 5 years term.
Relationships with current tenants have been strengthened and the covenant profile of the estate improved through new lettings attracting tenants such as Glasgow University. The estate also counts Vodafone, Arnold Clark, Plumstore and Jewson amongst its tenants.
The asset now yields 8% against costs.