Two industrial units which are home to a leading engineering and software design services group have sold for £4.5million in a deal concluded by award-winning commercial property specialist Bromwich Hardy.
The two units – covering 70,000 sq ft on the Pottington Trading Estate in Barnstaple – have been snapped up by an unnamed investor.
Bromwich Hardy founding partner Tom Bromwich said existing tenant Systems Engineering & Assessment (SEA) Limited would remain based at the site having recently agreed new terms on its lease.
He said the deal was further evidence of the strength of the commercial investment market across the UK, despite the impact of the pandemic.
“This is an excellent sale for all involved,” said Tom. “Our client is delighted to have purchased an excellent investment opportunity for a very fair price and with an established and respected tenant in place.
“It is the latest in a series of investment deals we have helped conclude – with more still to come – which shows that there is still a healthy market for well-placed properties which tick all the right boxes.
“In this case, a reversionary lease has recently been completed to SEA for a further ten years from April 2 2022 at £320,000 per year, and we anticipate an initial yield of 7.51 per cent.”
The site was sold by Scotsgrove Holdings Limited for whom the Bristol offices of JLL acted as agent.
SEA, which was founded in 1961 and is a subsidiary of listed business Cohort, has offices in this country, Canada and Malaysia and employs around 300 people.
Earlier this year it was awarded a new ten-year contract – thought to be worth up to £25million – for the management and upgrade of in-service sonar equipment for the Ministry of Defence.
The deal is the latest success for Coventry-based Bromwich Hardy, which was revealed to be the top performing firm in the industrial sector in the West Midlands this January, and the sixth best across the country.
