Orchard Street acquires Chelmsford Industrial Estate for £9.15 million

Orchard Street Investment Management LLP, the specialist commercial property investment manager, has purchased Chelmsford Industrial Estate, Tattersall Way in Essex on behalf of St James’s Place property funds. The building was bought from Legal & General Property’s Industrial Property Investment Fund (IPIF) for £9.15 million, reflecting a net initial yield of 8.65%.

The multi let estate comprises 18 industrial units with a total floor area of 116,507 sq ft and occupies a prominent site of approx. 2.98 hectares within the Widford Industrial area 2 miles south west of Chelmsford city centre. The property is fully let to 14 tenants with an average weighted unexpired lease term of 5.2 years as at the completion date.

Commenting on the acquisition, Richard Walters, Associate Partner at Orchard Street, said:

"We are delighted to have completed the acquisition of this estate for St James’s Place. The property is well located in a good south-east city and offers an attractive initial income return with significant asset management potential, particularly given the relatively limited supply of industrial stock in Chelmsford."

Jonathan Holland, Fund Manager to the IPIF at Legal & General Property, commented:

"The IPIF acquired Chelmsford Industrial Estate around the time of its launch, in 1997, and we have since put a number of proactive asset management initiatives in place to remove any voids on the park and enhance its income profile. Since its inception, the IPIF has outperformed IPD All Industrial Annual Index every year. This sale now allows us to recycle capital into the Fund and seek new attractive opportunities in the market where we feel well positioned to drive value."

Dowley Turner Real Estate advised Orchard Street and Jones Lang Lasalle acted for Legal & General Property.