News - 28/07/2011

£3.82m sale of Fareham industrial estate

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Representing AXA Real Estate Investment Managers, we have sold the Solent Gate Industrial Estate in Fareham for £3.82m.

The 50,000 sq ft scheme has been sold to Threadneedle Property Unit Trust, following a quick exchange and completion. The deal completed at a price of £3.82m, equating to a net initial yield of just under 8.2%.

Intensive asset management plan

Ian Pollard of AXA Real Estate said: “The sale of this asset follows our intensive asset management plan, which has included renegotiating a number of leases and letting the final unit of the scheme. This sale crystallises the value we have created and allows us to look for new investments where we can add value for our client.”

Long history with the scheme

Jerry Vigus, Director in our Capital Markets team, added: “LSH has been involved in letting the units on the estate since it was built in 2000, as well as being proactively involved in asset management through lease renewals and rent reviews. The sale of the scheme sees us go full circle.”

Solent Gate is located off Speedfields Park in Fareham and is adjacent to ASDA, Wickes, Hendy Ford and Vauxhall. The scheme comprises seven units totalling just over 50,000 sq ft across two terraces.

Targeted marketing campaign

Jerry added: “We were instructed to market the investment to a limited number of parties that we knew would have an interest, so embarked on a finely targeted marketing campaign. During this process we received expressions of interest from a mixture of institutions, property companies and local cash-rich investors. After a short marketing period, we secured the deal with Threadneedle, which was prepared to enter a 10 day exchange and completion.”

Jones Lang LaSalle acted on behalf of Threadneedle.

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