Orchard Street Investment Management has completed the acquisition of a prime, multi-let industrial estate in Hemel Hempstead, Hertfordshire for €16.5m (£14.9m). The asset was acquired from DTZi on behalf of St James’s Place Property Unit Trust. Centro Industrial Estate is a freehold self-contained estate totalling approximately 63,000ft² and comprising of four modern units. Fully-let to four high-quality tenants including Virgin Media, NTT, the Ambulance Service and DHL, the property has a WAULT of 9.5 years to expiries and reflects a low passing rent of €11 (£10) per ft² overall, offering strong prospects for rental growth compared to prime rents in the area in excess of €14.4 (£13) per ft².
The property is located within the established Maylands Industrial Estate in Hemel Hempstead, a strategic industrial location one mile west of the M1 motorway, four miles north of the M25 motorway and 24 miles north-west of Central London. Industrial supply within Hemel Hempstead is particularly low when compared to the wider South East market and is well-positioned as a last-mile location to benefit from the displacement of industrial occupiers from Central London.
Harry Buxton, Acquisitions Manager at Orchard Street, commented: “Given the scarcity of good quality, well-let opportunities at present, this acquisition represents an excellent addition to our Client’s portfolio and demonstrates our strong appetite for the industrial sector. In a volatile environment, the property provides secure income from a robust tenant line-up and, with occupational demand remaining buoyant in Hemel Hempstead and the wider South East market, the rental growth prospects for this property are positive.”
