The Client’s Challenge
We introduced and negotiated the off market acquisition of a prime industrial and trade park located on Fareham Road between Fareham and Gosport. The estate has been fully refurbished and developed by Oceanic Estates and was fully let to occupiers including Formula 1, Toolstation, KFC, Encon and North Sails.
The LSH Solution
Through market knowledge of the industrial, warehouse and trade sector on the South Coast we were able to secure the opportunity off market for Aberdeen Standard. We were aware of the reversionary nature of the rents to provide added value within the medium term.
The rents on the industrial units were £5.50-£5.75 with an Estimated Rental Value (ERV) of £7.50-£8.00 on the day of purchase with the trade units let at £8.50 with an ERV of £10.00.
This site was located in a strategic location with main road frontage to the A32 and offered a retail/ trade development site fronting the main road to potentially compliment the KFC that was already on site.
We were significantly involved in securing the deal through our relationship with the vendor and being able to provide the fund with the confidence to acquire the estate. The acquisition was based off a net initial yield of 4.76% reflecting £20.2m.