Acting on behalf of West Register and its Asset Managers, First Alliance, Lambert Smith Hampton has sold Erith House and Speedwell House on the Chandlers Ford estate to West Sussex County Council Pension Fund, managed by Cushman & Wakefield Investors.
Lambert Smith Hampton successfully let Speedwell House on Speedwell Close and advised West Register and its Asset Managers, First Alliance, on the lease renewal negotiations on Erith House on Warrior Close. Both units, located on the Chandlers Ford industrial estate in Southampton, are now let to Coopervision Manufacturing Limited.
Coopervision Manufacturing Limited signed a new 15 year lease with no breaks on Speedwell House and agreed co-terminus terms on Erith House. Both deals highlight the importance of the units to Coopervision Manufacturing Limited and its commitment to the region.
Both units are rented at £6.50 per sq ft, with fixed increase after five years to £7 per sq ft. Erith House amounts to 43,000 sq ft and Speedwell Close 30,000 sq ft.
West Register and its Asset Managers, First Alliance, instructed the Capital Markets team at Lambert Smith Hampton’s Southampton office to approach a shortlist of selected UK Institutions after being contacted by several investors expressing interest in purchasing both units.
After receiving offers from interested parties, terms were agreed with West Sussex County Council Pension Fund, via its fund managers Cushman & Wakefield Investors and their agents Lewis Ellis and Warwick Martel.
Jerry Vigus, Director of Capital Markets in Lambert Smith Hampton’s South Coast office, says: “Following the letting to Coopervision Manufacturing Limited, on behalf of West Register and First Alliance, we were approached by numerous UK institutions interested in the property. Investors expressed interest in the units because they benefit from 15 years income and are located in a strategic position, close to the M3/M27 interchange.
“UK institutions and investors are becoming increasingly inquisitive with regards to the South Coast, despite the lack of available, good quality industrial/warehouse units in the region, in anticipation that there could potentially be rental growth in the future, as well as occupier demand.”
The deal agreed with both parties equated to £7.3m, reflecting a NIY of 6.25%.
The transactions further highlight Lambert Smith Hampton’s exposure to the market, following its involvement in CBRE Global Investor’s acquisition of Aalco Metals and after advising Cordea Savills on the acquisition of the TW Metals unit, both located on the Nursling Industrial Estate.
