Peveril Securities and Marchmont Investment Management have sold South Central, an urban logistic warehouse in Orpington for nearly 70 per cent more than they originally bought it.
Savills advised Peveril and Marchmont on their original purchase of the property in Q4 2018 for c. £9 million. Following an extensive refurbishment and new letting, contracts have now exchanged to sell the property to Aviva Investors for c. £15 million, reflecting a net initial yield of 4.6 per cent.
The self-contained logistics unit extends to 53,587 sq ft with a yard depth of 39.5m. Marchmont fully refurbished South Central, which was subsequently let within two months to CSM Sport & Entertainment on a new 15 year lease, at a headline rent of £14 per sq ft.
The refurbishment saw the replacement and installation of additional loading doors, new carpets and suspended ceilings in the office space and new flooring in the warehouse.
Located in Orpington, the property is less than 16 miles from central London and has excellent access to the M25 and direct road and railway links to London.
Tom Scott of Savills, said: “We are pleased to have advised on the successful sale of this asset for our client at a price that demonstrates the resilience of the investment market for prime logistics property.”
Savills advised Marchmont Investment Management on the investment sale. Aviva Investors was represented by Knight Frank. Savills and Montagu Evans advised on the letting of South Central Orpington to CSM Sport & Entertainment.
By Liza Helps.