Royal London has bought the multi-unit Orchard Business Park in Woking from Goya Developments and Bilsdale Properties for £21m, a 4.40% net initial yield, CoStar News can reveal.
The recently completed property, extending to 77,000 sq ft, is arranged in two terraces and comprises six units.
It is 50% let to Euro Car Parts, CRM Trading and McLaren Automotive. The vendor provided rental guarantees on the vacant units.
Andrew Johnston, Fund Manager at Royal London Asset Management, said: “We’re very pleased to have secured this prime, south east industrial estate against strong competition in a challenging market. We’re confident of securing further quality occupiers for the vacant units to complement the existing tenant line up and believe that the estate affords good prospects of future rental growth. Royal London is positively disposed towards the industrial market in key locations and is actively seeking further investment opportunities.”
Gerry Young, partner at Montagu Evans, added: “This purchase provided an excellent opportunity to acquire a prime new south east development well positioned within the backdrop of a thriving industrial market. With the lack of development sites coming to the market we envisage the upward curve in rents to continue.”
Royal London was advised by Montagu Evans while Gerald Eve and Fletcher King acted on behalf of the vendor.
Publication: CoStar News
Also reported in Property Week