Orchard Street Investment Management LLP (Orchard Street), the specialist commercial property investment manager, has acquired Cobbett Park, Slyfield Industrial Estate, Guildford, on behalf of a pension fund client, for £19 million, reflecting a net initial yield of 6.16%. The vendor was Legal & General Property’s Industrial Property Investment Fund (IPIF).
Comprising ten high specification warehouse units totalling approx. 125,400 sq ft, Cobbett Park has an annual rental income of £1.24 million, reflecting an average of £9.80 per sq ft. The accommodation is let to eight tenants including Surrey County Council, Big Yellow, Safestore, Furniture Village and City Link, with an average unexpired lease term of 11 years to expiry and 7.5 years to breaks.
The estate occupies a prominent position on the Slyfield Industrial Estate, the principal industrial and commercial centre in the north of Guildford, and benefits from excellent access via the A3 to the M25 and the national motorway network.
Gary Felce, Partner at Orchard Street, said: "This is an excellent acquisition: Guildford is one of the most affluent towns in the South East and has a strong market. The estate is best in class and provides long, secure income from strong covenants.”
This is the second acquisition Orchard Street has made for the same client in the past two weeks, having also completed the purchase of City Cross Business Park in Greenwich, from Aviva, for £21.1 million, last week.
Jonathan Holland, Senior Fund Manager for the IPIF, at Legal & General Property, said: “This is a high quality asset, which benefits from its excellent location and strong tenant base. The disposal is in line with the IPIF’s successful fund strategy to crystallise value from its existing portfolio and reinvest the sale proceeds into high yielding assets with strong real estate fundamentals that also provide further asset management opportunities.”
Since the Fund’s inception in 1997, the IPIF has outperformed IPD All Industrial Annual Index every year. As such, it is one of only three funds in IPD Universe to have outperformed the IPD All Property Index every year over the timeframe. The Fund was established to invest in UK multi-let industrial property.
DTRE advised Orchard Street and JLL advised Legal & General Property.
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