Frobisher (Millbrook TE) Ltd have purchased the freehold for the 16.47 hectare sites of Millbrook Trading Estate and adjoining Millbrook Technology Campus from Southampton City Council for £3.607 million with a 4.5% net initial yield after costs. Vail Williams LLP, leading real estate advisers, acted on behalf of Frobisher (Millbrook TE) Ltd and Capita Symonds acted on behalf of Southampton City Council.
The Millbrook Trading Estate and Millbrook Technology Campus are located on a key area of land in the city approximately 2.5 miles west of the city centre close to the entrance to Dock Gate 20. The Millbrook Trading Estate was built in the 1950s and 60s and covers over nine hectares. It has 25 industrial, showroom and car parking land tenancies and includes adopted highways. The tenancies are a mix of low fixed ground rents, market ground rents and rack rented car parking. The majority of the leases have some 40 years unexpired on their term. The Millbrook Technology Campus is a site let to Phillips Semiconductors on a long lease.
David Reece of Capita Symonds said: “This deal is one of the largest investment transactions in the south this year. The price shows an attractive 4.5% net initial yield after costs and we were delighted with the high level of interest received.”
Julian Walker, Partner at Vail Williams LLP commented: “The purchase of Millbrook Trading Estate and Technology Campus is a significant investment transaction in Southampton and the tenancy structure will provide a number of development opportunities over the next few years.”
