Orchard Street Investment Management LLP (Orchard Street), the specialist commercial property investment manager, has exchanged contracts to purchase City Cross Business Park in Greenwich from Aviva Investors, for £21.1 million (approx. 27 million), reflecting a net initial yield of 6.25%. The acquisition was made on behalf of a pension fund client of Orchard Street.
City Cross Business Park comprises a logistics unit and six further warehouse units.
City Cross Business Park comprises a logistics unit and six further warehouse units totaling 175,096 ft² (approx. 16,266 m²). Fully let to five tenants with average unexpired lease term of 11.5 years, the industrial estate has a total rental income of £1.39 million (approx. 1.77 million), reflecting an average £8.25 (approx. 10.56) per ft².
The prime, modern industrial estate is situated on Greenwich Peninsular, in close proximity to the City, Canary Wharf and suburban London. Located adjacent to the A102 Blackwell Tunnel Approach, the site also offers easy access to north and south arterial routes.
Commenting on the acquisition, Gary Felce, Partner at Orchard Street, said: "Competition for prime industrial stock in Greater London, particularly multi-let industrial estates, remains strong, underpinned by demand. We are, therefore, delighted to have secured this extremely rare opportunity to purchase City Cross Business Park, especially given the weighted average unexpired lease term and reversionary rents.
"The location works extremely well for occupiers serving central London and is surrounded by a number of higher value uses including a range of exciting new mixed use developments, such as the potential new cruise terminal."
Aviva Investors were advised by DTZ. DTRE advised Orchard Street.