13th April 2017
Hansteen disposes of Hawtin Park, South Wales for £5.15 million
Hansteen, advised by Alder King, has completed the freehold disposal of its Hawtin Park property in Blackwood, South Wales. The 106,844 sq ft property was sold to an overseas high net worth investor, advised by Knight Frank, for £5.15 million, reflecting a NIY of 7.83%.
The property has been occupied by British Airways since 1995 as its advanced cabin interior and safety facility. The facility provides services which include the maintenance of slides, life vests and survival packs as well as seating, cabin interior components and carpet manufacture.
The disposal brings to a conclusion an extremely productive landlord and tenant relationship.
The property, which was originally circa 50,000 sq ft, was purchased by Ashtenne in 1999. In 2005 BA committed to further investment in the site, working in partnership with Ashtenne to construct an additional 55,000 sq ft.
In August 2016 Hansteen successfully renewed the lease with British Airways plc on a 10 year term, achieving a headline rent of £430,000 per annum (£4.02 per sq ft).
Chris Watkins, asset manager at Hansteen, commented: “We have worked with and supported British Airways over the last 15 years to expand its range of services at the facility, culminating in the construction of the 55,000 sq ft extension in 2005.
“Having successfully agreed renewal terms with BA last year, we have taken the opportunity to dispose of the property at the peak of its asset management cycle, taking full advantage of current market conditions, particularly the demand for industrial property.”
James Nicholas of Alder King’s Cardiff office added: “The falling pound has made the UK real estate market increasingly attractive to overseas investors. We’re delighted to have helped deliver this strategically important disposal for Hansteen.”
James Mason of Knight Frank added: “This is a clear example of the increased appetite from international capital for well-let regional investments and our client looks forward to a strong and continued relationship with the tenant, British Airways.”