Rockspring, announced that, on behalf of Rockspring Hanover Property Unit Trust, it has acquired the Hatch Industrial Park, Basingstoke, and a parade of retail units in Lancaster, Lancashire, for a total of approximately £20 million (approx. €24.26 million).
The Hatch Industrial Park, located adjacent to the M3 just outside Basingstoke, South East England, was acquired for £9.915 million (approx. €12 million), reflecting a net initial yield of 7.1%. The vendor was the British Airways Pension Fund. The Park comprises a total of 97,034 ft² (approx. €9,014 m²) of high quality industrial space across nine units, varying in size between 5,342 ft² (approx. €496 m²) and 31,283 ft² (approx. 2,906 m²), and is fully let to eight tenants, with an average unexpired lease term of approximately nine years. Fletcher King acted for Rockspring, while Dowley Turner Real Estate advised British Airways Pension Fund.
Separately, Hanover acquired 1-11 Penny Street, and 2,6-8 and 10 Lancaster Gate, Lancaster, a multi-let parade of eight retail units, for £10.415 million (approx. €12.6 million), reflecting an initial yield of 7.1%, from Gordon Neville Moon Properties and Rockhouse Investment Limited. The units are let to high quality occupiers, including Superdrug, Topshop/Topman and O2. The units will be combined with Hanover’s existing ownership of the adjacent St. Nicholas Arcades shopping center, creating a dominant holding of retail properties in Lancaster’s key shopping location. Rockspring will implement an integrated asset management programme across the properties to improve income and valuations. CBRE acted for the vendor, while Knight Frank, Bradys and Reith Lambert acted for Rockspring.
Mischa Davis, Hanover Fund Manager, said:
“These two transactions highlight the opportunity that we currently see for Hanover to generate value in the UK market. The Hatch Industrial Park is a high quality, well-located asset in an undersupplied region, which we believe offers the potential for rental growth and valuation uplift in the coming years. The retail assets in Lancaster, when combined with our existing ownership of the adjacent shopping center, provide an opportunity for us to take a dominant position in the town’s core retail area and increase our asset management options. I am confident that, with hands on management from our specialist team, these properties will generate a strong return for our investors.”
Source: Rockspring
