Orchard Street Investment Management LLP, the specialist commercial property investment manager, has acquired a portfolio of industrial properties in the South East of England, for a pension fund client for £50.4 million (approx. 57 million), reflecting a net initial yield of 7.1%.
The portfolio totaling 522,159 ft² (approx. 48,500 m²), comprises three multi-let estates located in Woking, Maidenhead and Newbury, and four single-let warehouses located in Park Royal, Hayes, Milton Keynes and Huntingdon. The properties are let to institutional quality tenants with a weighted average of ca. eight years of unexpired income.
Knight Frank advised Orchard Street on the acquisition.
Commenting on the acquisition, Gary Felce, Chief Investment Officer at Orchard Street Investment Management, said: "We are very pleased to have secured this South East Industrial portfolio given the limited supply of similar quality investments and the current institutional demand for this sector.
"The portfolio provides an attractive income return which will further increase upon the letting of the vacant units and also offers a number of opportunities for lease extensions and refurbishments which will add further value."
Source: Tavistock Communications