Vickery Holman’s Investment Department celebrated a successful end to 2014 with over £7 million worth of transactions completeing in the last 2 months of the year.
The latest and smallest of the deals was unit 2A & 2B on East Way, Lee Mill Industrial Estate, which completed just before Christmas at £290,000, reflecting a net initial yeild of 8.55%.
The tenants include Apetito Limited and are currently producing a total rental income of £26,000 per annum. The two units, both 2,400 sq ft, include extensive car parking and yard space on this popular industrial estate alongside the A38 Devon Expressway.
Vickery Holman’s Investment consultant Mike Oldrieve comments:
“It was a good end to 2014, having completed £7 million worth of deals in the last 2 months. It began with the sale of Tamar House in the centre of Plymouth, home to the Main Post Office, selling for over £3million and includeds the St Ives Factory at Langage £1.8 million, Royal Building & Kinterbury House in the centre of Plymouth £2m and £350,000 respectfully.
We also anticipate a cracking start to 2015 with the sale of St Andrews Court, in the centre of Plymouth, currently under offer.
There are still plenty of cash purchasers which are now being supplemented by the major banks, who are once again lending on commercial property. As demand picks up however, supply of new investment stock is becoming limited and prices will certainly rise.
To anybody considering disposal of their commercial property, there is a window of opportunity before the May election, when we are anticipating the market will slow, possibly not returning again until later in 2015.“
