30th January 2023
Springfall Properties sells Caerphilly industrial estates to MVJ Capital
Springfall Properties have sold the freehold of two multi-let industrial estates in South Wales to property investors MVJ Capital. Dyffryn Court and Withey Court in Caerphilly were sold for £10 million, reflecting a net initial yield of 7.75%.
Alder King acted for the vendor while Savills represented the purchaser.
The two assets combined comprise 276,704 sq ft of industrial space on 14.7 acres and are let to 23 tenants including Direct Healthcare Group, Dustandthings, Star Linen, Get Set Scenery, Landscapes for Learning and Fastenal. The total combined passing rent is £833,739 per annum, reflecting a low average rent of £3.00 per sq ft. Both estates offered asset management opportunities to improve the income profile and drive rents.
Owen Young, partner at Alder King in Cardiff, said: “Acting for a family owned business, who originally purchased and subdivided these large buildings, it was pleasing to receive interest from a number of parties, all wishing to cash in on the potential to increase income in this strong sector of the market. The family will be using the proceeds to concentrate on new development opportunities.”
Ross Griffin, Director at Savills, said: “We were pleased to act for MVJ capital on this transaction which gives the opportunity to further asset manage and add value for my client. The attractive income return proved attractive in a sector they felt confident in with a lack of occupational space available in South Wales.”