SWIP Property fund invests £60 million in two prime sites

The SWIP Property Trust has bolstered its portfolio with two sites in Edinburgh and Sheffield.

In deals that saw the firm put more than £60 million into commercial property ventures, SWIP acquired The Bridge in Edinburgh’s Old Town and The Moor Estate in Sheffield.

Both are primarily retail sites and The Bridge, located in the Scottish capital’s Royal Mile, is also home to the upmarket Missoni boutique hotel as well as Banking Hall, leased to Bank of Scotland.

Citywire A-rated Gerry Ferguson,  head of SWIP’s UK property fund, said the £41 million Scottish acquisition could return long term benefits and is currently producing a net yield in the region of 6%.

He said: 'The Bridge on the Royal Mile is an opportunity providing a diverse income stream which benefits from an excellent location.'Despite the challenging economic conditions, SWIP believes Edinburgh has faired well relative to other UK markets.'

The Moor Estate, purchased for around £26.5 million, is also considered a prime building by the fund manager.

Ferguson said part of the 24-acre plot had been earmarked for Sheffield’s new 200-stall central indoor market, which will replace the city’s historic Castle Market. 

Its 83,000 sq ft of retail space also comes with detailed planning consent. Ferguson said it represented a long-term project with the potential to add value through a phased redevelopment.