Agents at the south coast offices acted for the global asset manager in its acquisition of the park for £20,200,000 – the purchase price reflecting a net initial rental yield of under 5%.
Lambert Smith Hampton’s knowledge of the investment and occupational market in the south was instrumental in highlighting the income potential of the estate. Current rents are between £5.50 and £8 per square foot – considerably lower than existing rents elsewhere on the South Coast, which are heading towards £10 per sq ft.
The park, in a prominent position fronting on to Fareham Road, had recently been redeveloped by Oceanic Estates and offers in excess of 135,000 sq ft of property on 11.3 acres.
Trade park occupiers include KFC, Toolstation, Formula One Autocentres, Encon and Strongroom Self Storage. An additional vacant plot has consent for a drive-through operator or trade counter/retail unit.
To the rear of the park, business park tenants include Encon and the European headquarters of North Sails plus additional development sites, which are currently let as open storage.
Jerry Vigus, Director of Capital Markets and Industrial Logistics at the South Coast offices of Lambert Smith Hampton, said: “The acquisition of this estate offers Standard Life Investments the opportunity to add to their industrial and logistics assets in the area, which have proved successful.
“Through our knowledge of the investment and occupational market, we were able to supply Standard Life Investments the evidence to prove the potential reversion to come from the estate.
“The South Coast remains to be one of the most sought-after locations within the South East for an industrial/logistics property hence why Standard Life Investments were keen to acquire this asset.”
Lambert Smith Hampton, with offices in Fareham and Southampton, is a multi-award-winning commercial property specialist and a leader on the South Coast in the industrial property, office space, retail and investment markets.