Withey Court & Dyffryn Court Industrial Estates, Caerphilly
- Client: Springfall Properties
- Services Provided:
- Investment Agency • Industrial & Logistics Agency • Property Management
The Instruction
Following a period of successful letting and property management, Alder King was instructed to sell the freehold investment of these two industrial estates, totalling approximately 275,000 sq ft and generating an income of around £834,000 per annum.
Our Approach
Expertise was combined across multiple teams in Alder King’s Cardiff and Bristol offices.
Letting – by adopting a pro-active and flexible letting strategy, we were able to minimise the void rate across the two estates at the point of sale.
Property Management – by developing strong landlord/tenant relationships, we were able to maintain a healthy income profile, despite the broad range of covenant strengths, whilst ensuring that all landlord obligations were met, including statutory compliance.
Investment sale – We identified that combining the two assets broadened appeal for an extended target market. A wide marketing campaign was undertaken which maximised exposure via a range of channels. It highlighted future asset management opportunities to improve the income profile and drive value.
A comprehensive data room of supporting information was created and maintained to streamline the marketing process and ensure interested parties had all the information required to make an informed assessment of the opportunity, thereby substantially reducing the transactional risk.
Results
Despite a backdrop of growing economic uncertainty and falling property values, we successfully completed the sale of these assets in January 2023 to MVJ Capital (represented by Savills) for £10 million, reflecting a net initial yield of 7.75%.
