Sidra Capital has successfully advised a Saudi-based cornerstone investor in Blueberry Holdings, an SPV, which owned Rolls Royce Plc’s manufacturing and distribution facility in Glasgow, to exit his investment.

The long leasehold interest in the property was purchased by EPIC (UK) for 55,000,000 pounds that reflects a 6 percent initial yield raising to 6.4 percent in March 2018 and 6.9 percent in March 2023 respectively.

The 541,000 square feet purpose-built warehouse sits next to Glasgow Airport and the M8 Motorway and the existing lease to Rolls Royce Plc has over 14 years remaining until March 30, 2028 at a gross rental of 3,481,620 pounds. It currently houses Rolls Royce Plc’s aircraft engine manufacturing and distribution facility.

Hani Baothman, CEO of Sidra Capital, the transaction adviser, stated: “Over an investment period of 3 years, we have managed to secure for our investor a return on his investment of approximately 30 percent cash on cash, and an internal rate of return in excess of 10 percent, both of which were in line with our investment target.

The timing of the exit was planned and the offer we received from EPIC (UK) was both credible and attractive. We are very pleased to have been able to deliver such attractive returns to our investor.”

This is one of a series of planned disposals in 2014-2015 for Sidra’s investors emanating from its aggressive UK real estate investments since 2011 when the market was impacted by the slow global economic growth.

“As the UK economy is recovering at a more stable rate and in line with our investment strategy, we believe the time is now right for us to exit some of these investments,” he added.