An industrial unit at a strategically located industrial estate on the South Coast has been acquired in a multi-million pound investment sale.
Property consultancy Vail Williams advised in the sale of the long leasehold interest of Silver Point in Portsmouth to Paloma Capital, private equity real estate investor.
The 40,436 sq ft building at Airport Service Road, Hilsea Industrial Estate, was sold to Paloma Capital for £4.5 million, representing a net initial yield of 6.55% allowing for purchaser costs and ground rent.
Russell Mogridge, who leads Vail Williams’ Industrial Agency Team in the UK and works out of the firm’s Portsmouth office, acted on behalf of Silver Point’s owner, a private investor.
He said: “This is one of the largest commercial property investment sales of its kind in the Portsmouth for some time and underlines how industrial & logistics property remains a safe haven for income-focused investors amid the UK’s heightened economic pressures.
“Silver Point, constructed in 1995, is particularly appealing, being in a highly accessible location close to the M27 Solent Corridor and Portsmouth International Port, on a self-contained site and yard space. The railway station is adjacent, for commuter convenience.
“We have acted for Silver Point’s owner for the last 25 years and, at the start of 2022, let the warehouse on a new five-year lease at a rent of just over £360,000 per annum, equivalent to £8.90 a sq ft.
“This investment sale demonstrates that far-sighted investors are still buying.”
Jeremy Collin, Director and lead asset manager on Paloma’s Dove Property Fund, said: “We are particularly pleased with the purchase of Silver Point within the Dove Real Estate Fund, which adds to our existing Portsmouth holding at nearby Interchange Park. Paloma continues to see Portsmouth as an attractive industrial location in which to invest.”
Locally based law firm Blake Morgan acted on behalf of the seller.
Silver Point’s occupier is Contract Candles & Diffusers, which works with leading brands in the luxury and home fragrance sector.
The investment sale follows on from a £7.7 million freehold acquisition which Vail Williams advised on for new owner Hargreaves Group at Poole Trade Park, Poole, Dorset; the multi-let trade park generates £424,509 per annum, equivalent to £11.73 a sq ft.
