Orchard Street Investment Management LLP, the specialist commercial property investment manager, announces that it has acquired Riverside Cargo Centre, Poyle from the Airport Property Partnership, a joint venture between SEGRO and Aviva Investors, for £6.15 million (approx. 7.6 million), reflecting a net initial yield of 6.08%. The acquisition was made on behalf of St James's Place property funds.
Riverside Cargo Centre is a 43,063 ft² multi-let industrial estate comprising three warehouse units with ancillary offices. The 2.43 acre site is situated on Mathisen Way in Poyle, an established location within the Heathrow and West London industrial market.
The estate benefits from an excellent strategic location just two miles outside of Heathrow Airport and approximately 20 miles to the west of Central London. With its close proximity to Junction 14 of the M25, Junction 5 of the M4 and Junction 2 of the M3, the estate also enjoys unrivalled transport connectivity.
The units are fully-let with a current passing rent of £395,648 per annum, reflecting an average rent of £9.19 per ft².
Commenting on the acquisition, Barney Rowe, Partner at Orchard Street, said: "Given the strong investor demand for prime London and South East multi-let industrial estates we are delighted to have secured this opportunity, particularly at a time when few such estates are coming to the market. With good occupational demand and the limited supply of prime properties to let close to Heathrow, we expect to see strong rental growth."
DTRE advised Airport Property Partnership and Crossland Otter Hunt advised Orchard Street.
Source: Tavistock Communications