Charities Property Fund buys two assets for £12.3 mln, sells two for £15.2 mln. (UK)

The Charities Property Fund has completed the purchase of two industrial units and the sale of two other assets. The first purchase is an industrial unit in Porchester, Portsmouth for £6.98 million (€8.26 mln.) and the second, in Little Oak Drive, Sherwood Park, Nottingham for £5.34 million.

The Porchester asset is let to SMR Automotive Mirrors and reflects a net yield of 9.4% on the purchase price for an unexpired term of nine years. The Nottingham asset is let to Turbine Surface Technologies and produces a net yield of 8.0% on an unexpired lease of 16.5 years. The combined yield for the assets is 8.8%.

The sales are an industrial unit in Southgate Way, Peterborough for £6.7 million and a retail parade in Worthing for £8.48 million. An uplift of £1.2 million, or 21.5%, was realized on the Peterborough asset by accepting a lease surrender from the existing tenant who wished to vacate and simultaneously identifying an owner-occupier to buy the newly vacated unit. In addition, the sale price for Worthing exceeded the most recent valuation by £130k, or 1.6%.

Harry de Ferry Foster, Fund Director of the Charities Property Fund, commented: "Both of the purchased assets are let to tenants rated as very low risk by Experian and are modern manufacturing facilities in which the tenants have invested significantly in technology, demonstrating their commitment to the properties. The uplift we made on the Peterborough asset represents a very successful example of active asset management."

Source: Citigate

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