21st July 2014
Alder King acquires freehold investment of Plymouth warehouse
Acting on behalf of TR Property Investment Trust plc, property consultancy Alder King has acquired the freehold investment of a Plymouth warehouse for £3.25 million from clients of Knight Frank Investment Management. The vendor was represented by Knight Frank.
Unit H1 Parkway Industrial Estate, located just off the A38 Devon Expressway in the Marsh Mills area of the city, comprises a large industrial/warehouse building totalling 66,157 sq ft.
The entire property was let to the excellent covenant of Invensys plc with seven years unexpired at a passing rent of £298,000 per annum. It is now sub-let to Interlube and Grevan Cars Ltd.
The purchase price of £3.25 million reflects a net initial yield of 8.67%.
Oli Stretton, associate in Alder King’s investment team, commented: “We were delighted to have secured this asset, given the restricted supply and strong occupier demand in this location. The property offers a secure income stream with a strong residual value and offers scope to invest further in the building to add value in the long term.”
John Styles, Fund Manager at Knight Frank Investment Management, commented: “We are pleased to have sold into a strong investment market. The sale is part of our strategy of disposing of smaller properties in this portfolio to concentrate active asset management on larger lot sizes likely to add significantly to returns in a £500m investment portfolio.”