Orchard Street Investment Management, the specialist commercial property investment manager, has completed the acquisition of Lister Road industrial estate in Basingstoke on behalf of St. James’s Place Property Unit Trust, from Store Property Investments for £13.25 million. The sale price represents a net initial yield of 6.5%.
The asset is a 130,407 sq ft, established multi-let industrial and trade counter estate situated on a 7.2 acre site in south west Basingstoke, with direct access to the M3 motorway.
Comprising 20 warehouses and trade units, the estate is currently let to 13 tenants on 17 leases which produce rental income of £914,556 per annum. Current tenants include, Pilkington Glass, Leverton-Clarke, Hampshire County Council and Edmundson Electrical.
The estate has an average weighted unexpired lease term of 4.7 years.
John Humberstone, Partner at Orchard Street, commented:
“Lister Road is a high quality multi-let industrial and trade counter estate that benefits from a strong tenant base and its proximity to London the M3. The estate is popular with tenants, providing units from 2,500 sq ft to 16,500 sq ft which allows them to expand and contract within the estate as required. We believe that this asset offers clear asset management potential to drive rental and capital value growth as the economy continues to rebound.”
DTZ acted for Orchard Street and Deloitte Real Estate acted on behalf of Store Property Investments.
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.