The SWIP Property Trust (SWIPPT) and Centurion Properties, the asset and development manager, have let their Lakeside Industrial Estate near Heathrow Airport in one of the largest letting transactions in the area for the last 10 years.
The four units at the estate in Colnbrook, which total 171,446 ft² (approx. 15,927 m²), have been let to DX Network Services and Tourvest Duty Free (UK).
DX has taken 135,880 ft² (approx. 12,623 m²) on a 10-year lease without a break at a rent of £9.32 per ft².
Tourvest has taken 35,566 ft² on a nine-year lease, with options to break after the 2nd and 5th years, at a rent of £8.57 per ft².
The total rent roll from the two lettings is £1.57 million (approx. €1.84 million) a year, equivalent to £9.16 per ft².
Julian Rooth, Chief Executive of Centurion Properties, said: “This letting is one of the largest transactions at Heathrow for many years. What sets it apart from most transactions in the Heathrow market however is the 10-year uninterrupted income stream from a global company, delivering significant out-performance relative to benchmark returns and added value to the SWIP Property Trust.”
Gerry Ferguson, head of wholesale real estate funds, commented: “We are delighted to have secured this significant letting with two high-caliber tenants. The deal generated an ungeared IRR in excess of 25% which is a fantastic result in what has been challenging market conditions, and one which demonstrates the benefits of working in partnership to achieve a successful outcome for the Fund.”
Altus Edwin Hill, Aspect Property Consultants and Dowley Turner Real Estate acted for SWIP Property Trust and Centurion. The Property Department represented DX International and Tourvest was unrepresented.
Source: Tavistock Communications