Trio of Investment deals
27 February 2008
In Midsomer Norton, Watford and South Hampstead, NW6
Units 2 & 3 Westfield Trading Estate, Midsomer Norton
Watford Enterprise Park, Greenhills Crescent, Watford
Units 2 & 3 Westfield Trading Estate, Midsomer Norton
King Sturge has acted for Lydford Limited in the acquisition of 2 industrial units in Midsomer Norton, 11 miles south west of Bath, for £7.4 million reflecting a net initial yield of 6.5% and a capital cost of only £46 per ft².
Both units are let to Communisis UK Ltd, guaranteed by Communisis Plc, providing excellent security of income, on terms expiring in June 2023 at a combined rental of £508,018 pa. The two units extend to 160,500 ft² overall and are to be reviewed next in June 2011 and five yearly thereafter to RPI uplifts. Assuming RPI at 3% pa (4.1% in January) the income return will increase to 7.5% in June 2011, 8.7% in June 2016 and 10.1% in June 2021.
The vendor was The Charities Property Fund who was advised by Cordea Savills.
Watford Enterprise Park, Greenhills Crescent, Watford
London & Watford LLP has acquired the long leasehold interest in Watford Enterprise Park from MRC Pension Trust Ltd, c/o Henderson Global Investors, in an off-market deal for £1.98m reflecting a net initial yield of 8.0%.
The estate comprises 21 small industrial units ranging in size from 500 – 1,230 ft² and totalling 16,527 ft².
King Sturge acted for the purchaser whilst the vendor was unrepresented.
61 Fairfax Road, South Hampstead, London NW6
Matisse (Hampstead) Ltd, c/o Cube Real Estate, has completed the sale of the long leasehold interest in a single let retail unit to a private investor in an off-market transaction for £1.175m reflecting a net initial yield of 5.65%.
The unit is let to Charles Page Interiors Ltd expiring in June 2019 at a rent equating to £32.40 per ft² ITZA which is rack rented.
King Sturge acted for the vendor and originally acquired the property in a portfolio a couple of years ago on behalf of Cube Real Estate.
61 Fairfax Road, South Hampstead, London NW6
