With turmoil in the property markets, property investors are turning to industrial and logistics property to provide safe secure income further supporting the strength of the logistics market as a stalwart fore he economy.
Specialist commercial property investment manager Orchard Street Investment Management paid £14.9 million for St James’s Place Property Unit Trust’ 63,000 sq ft multi-let Centro Industrial Estate in Hemel Hempstead, Hertfordshire.
The freehold self-contained estate is fully-let to four high-quality tenants including DHL, Virgin Media, NTT, and the Ambulance Service.
Harry Buxton, Acquisitions Manager at Orchard Street, said: “In a volatile environment, the property provides secure income from a robust tenant line-up and, with occupational demand remaining buoyant in Hemel Hempstead and the wider South East market, the rental growth prospects for this property are positive. Given the scarcity of good quality, well-let opportunities at present, this acquisition represents an excellent addition to our Client’s portfolio and demonstrates our strong appetite for the industrial sector.”
The property has a WAULT of 9.5 years to expiry and reflects a low passing rent of £10 per sq ft overall, offering strong prospects for rental growth compared to prime rents in the area in excess of £13 per sq ft.
Orchard Street was advised on the acquisition by Gerald Eve, while the vendor was advised by DTRE.