Orchard Street acquires Castle Industrial Estate, High Wycombe

Orchard Street Investment Management LLP, a leading UK specialist commercial property investment manager, representing a Pension Fund client has acquired for £30.5m the 370,000 sq ft Castle Industrial Estate, High Wycombe in an off-market transaction.

The vendor was Max Property Group plc advised by Prestbury Investments LLP. The estate, which formed part of the Industrious Portfolio, is let to tenants including John Lewis, Geodis, Biffa and R H Amar, producing a rent of £2.85m pa. The transaction shows a net initial yield of 8.85%.

Gary Felce of Orchard Street commented:

"We are very pleased to acquire this South East estate which offers a good balance of income and management opportunities in a market with limited supply."

Mike Brown of Prestbury said:

"Since purchase last October we have secured early renewal of leases and new lettings on over 200,000 sqft on this estate. Whilst we were not seeking a disposal, with a lot size of over £30m reflecting £87psf Castle Estate is not a natural fit with the remainder of the Industrious portfolio which comprises 80 higher yielding properties with an average lot size of under £3m and acquired at circa £30psf."

DTZ advised Orchard Street. Max were advised by Franc Warwick.