- What BrewDog agrees £12m sale-and-leaseback deal with Fiera Real Estate for Scottish warehouse property
- Why Fiera buys 67,700 sq ft property for long-income fund
- What next The property is let to BrewDog on a 20-year lease
BrewDog has agreed to sell and lease back a brewery and distribution hub in Scotland, React News can reveal.
Fiera Real Estate is buying the 67,700 sq ft property at Eurocentral, 11 miles to the east of Glasgow city centre, for £12m, reflecting a 3.5% yield. The purchase is being made on behalf of Fiera Real Estate Long Income Fund UK.
Under the terms of the deal, the property, which sits on a 3.8 acre site, has been let to Scottish beer giant BrewDog for 20 years.
The proceeds of the sale will be reinvested into the business as BrewDog continues to enlarge its global footprint. BrewDog chief executive and co-founder James Watt revealed earlier this year that the brewer was working towards a stock market flotation, which could value the group at £2bn.
The deal comes just over two years after BrewDog struck another sale-and-leaseback deal for a warehouse at Eurocentral. CBRE Investment Management bought the 129,000 sq ft unit, which was then described as one of Europe’s first refrigerated beer warehouses, for a reported price of £14m.
Other occupiers on the estate include Amazon, Hermes, Next, Lidl and Morrisons. It lies next to Junction 7 of the M8 motorway, the main central motorway linking Glasgow and Edinburgh.
The latest deal comes at a busy time for Fiera Real Estate’s long-income team. Just last week, the fund manager bought a 120,000 sq ft warehouse in Thatcham let to automatic engineering firm Xtrac for £10.9m, reflecting a 3% yield. The property is let on a 76-year unexpired lease.
Galbraith acted for Fiera and MWM acted for the vendor.
