Savills Investment Management has acquired two industrial units on behalf of its Charities Property Fund for €10.2m (£8.96m). The units comprise two modern detached warehouses located within the established Houndmills industrial area of Basingstoke. Units 1 & 2 Gemini total c.28,000ft² and 40,000ft² in size, are fitted out to a high specification and have a low site cover. The units are currently let to Berry Bros and Vodafone, producing a weighted average unexpired lease term of over eight years and a blended rent of €8.81 (£7.72) per ft².
The assets are conveniently located close to the A339 ring road and Junction 6 of the M3, with nearby occupiers including Sainsbury’s, Keuhne & Nagel, Bidfood and Martin Brower as well as trade counters and car dealerships including Mercedes, Volvo and Toyota.
This latest acquisition closely follows the successful letting of another unit within the Houndmills estate owned by the fund at €11.4 (£10) per ft² showing genuine reversion for this recent purchase.
Angy Benitz, Portfolio Manager of the Charities Property Fund, Savills Investment Management, commented: “The acquisition of these units supports our strategy to acquire assets in supply-constrained locations that provide robust and growing income with a valuable residual land position. They are a further addition to our portfolio of quality assets in core locations and adds to the Fund’s south-east industrial weighing. This asset has been targeted both for its sound fundamentals and owing to the potential for significant reversion in rent that can be achieved going forward, given the lack of available supply in the area and constrained-development pipeline in the area.”