18/07/2008
Vail Williams LLP has successfully disposed of an attractive Grade A industrial investment to a private investor at SEGRO’s Voyager Park in Portsmouth.
The Vail Williams local agency team were responsible for the letting of Unit D7 to Electrolux plc by way of a new 10-year lease with a tenant’s break option at year 5. The rent passing is £33,000 pa, but enjoys the benefit of annual uplifts based upon the retail price index.
The investment was subsequently sold for £481,000, reflecting a net initial yield of 6.5%.
The multi-million pound Voyager Park scheme is the largest industrial development in the city for a decade and provides more than 500,000 sq ft of new industrial and warehouse space. The development is strategically important to Portsmouth, in terms attracting and securing industrial inward investment and providing high standard property solutions to local businesses.
Russell Miller of Vail Williams LLP’s investment team commented, “Our client was very pleased that we were able to achieve a sale at this level in the current market, but it does illustrate that there remains an appetite for prime investment opportunities with growth prospects in the smaller lot sizes.”
Russell comments further, “The market is likely to continue experiencing lower transactional activity in the next 12 months with further price volatility until confidence returns to the banking sector, property market and overall economy. However we believe as vendors aspirations become more reasonable, there will be good opportunities for well advised, well funded active investors.”
