Achieved an above asking sale at just over £1M showing a net initial yield of under 5%
Let to SIG Trading Ltd for 15 years from June 2016 with no breaks
The Roofing Centre, Moneyfield Lane, Portsmouth
Rental Agreement Case study - Brookshire Capital LLP
5,711
sq. ft.
of existing buildings with 0.7 acre Builders Merchant - freehold investment
Over 9 years
left on the lease
£52,350
per annum
secured new rental income with negotiated 40% uplift in rent at review
Challenge
Vail Williams was appointed by Brookshire Capital to advise on the disposal of an industrial investment in Portsmouth, which was part of a larger portfolio we helped the client to acquire in 2016.
We originally advised Brookshire Capital on the off-market acquisition and leaseback of the wider portfolio to SIG Trading Limited.
This included the sale and leaseback of a 0.7-acre site made up of 5,711 sq ft of existing warehouse buildings known as The Roofing Centre in Portsmouth, let to SIG Trading Ltd for 15 years with no breaks.
Drawing on the strength of the industrial investment market and the fact that there was still a long term left on the lease, our client had now decided to dispose of the investment.
How we helped
- Originally introduced the sale and leaseback opportunity to the Brookshire; a portfolio of 11 industrial and builders merchant investments to be let to SIG Trading for 15 years from completion
- Provided detailed asset specific investment advice on each of the assets in the portfolio
- Between 2016 and 2022, supported Brookshire Capital with the sale of a number of the assets
- Subsequently appointed to dispose of The Roofing Centre site to maximise return on investment in a strong industrial investment market
- Site had future residential development potential, subject to planning
- Lease advisory team brought in to advise on rent review
- Worked with tenant and client, negotiating a close to 40% uplift in rent to £52,350 pa
- Investment was then marketed, securing strong interest
Vail Williams introduced the investment to us as part of an off-market portfolio in 2016. With their advice and support we were able to contract the portfolio purchase in under two weeks. Six years on, the firm’s in-depth knowledge of the Portsmouth industrial market, their transaction management, letting and rent review advice combined to drive a strong return on this investment, and deliver a result which was over and above our expectations.
Alex Wildman, Brookshire Capital LLP
Result
- Supported client in end-to-end investment advice – from acquisition to subsequent disposal
- Secured significant rental uplift of 40%, creating a good rental yield for prospective buyers
- Three credible buyers enabled swift sale following best bids, at just over £1m
- Equated to net initial yield of 4.9%, with 9 years remaining on tenant lease
- Increased the value of the asset by over 100%.
Get in touch
If you think you may need similar support to that described here, or you would simply want to have an informal chat with a member of our team to discuss your property needs, get in touch.
SouthamptonPortsmouthBournemouth
Southampton
