Orchard Street Investment Management, the specialist commercial property investment manager, has completed on the acquisition of the Rockingham Gate, a prime freehold multi-let industrial investment on Cabot Park, on behalf of St. James Place Property Unit Trust from the BP Pension Fund. The purchase for £10.7 million reflects a net initial yield of 5.95%.
Rockingham Gate is situated at the entrance to Cabot Park and comprises a terrace of high quality distribution/industrial units. Providing a total of 104,254 sq ft, the fully let space is sub divided into four units. The current tenant line-up of All Metal Services, Bunzl UK, Expeditors International and The Paper Company deliver a total passing rent of £673,517, reflecting a low overall rent of £6.45 per sq ft and a WAULT of 2.5 years.
Cabot Park near Bristol is regarded as one of the South West region’s premier multi modal distribution parks. Situated close to the M5 and M4 motorways, Avonmouth and Portbury Docks and benefitting from its own dedicated rail terminal, it is home to a number of major occupiers including John Lewis, Honda, Kuehne & Nagel and Yankee Candle.
Barney Rowe, Partner at Orchard Street, commented:
“Cabot Park has gained a strong reputation as one of the South West’s leading distribution hubs, and continues to hold strong appeal for occupiers. With a low average passing rent and against a backdrop of low vacancy for modern distribution units of 25,000 – 50,000 sq ft in the Avonmouth and Bristol areas, we believe this asset presents a strong opportunity to grow income in due course.”
Savills advised for Orchard Street and Knight Frank acted on behalf of the BP Pension Fund.
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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.