National commercial property consultancy, Lambert Smith Hampton, announces it has traded over £25m worth of transactions on the South Coast.
At £11.6bn, national commercial property investment levels are at a six year high – 50% above the post-2010 market average and 40% up on the Q2 total of £8.24bn.
In terms of investment activity, the central London office market remains the most highly invested asset class but the regional market, in particular the South East, including the South Coast, are becoming popular with major UK institutions and property companies looking to invest and in search of a slightly higher yield compared to central London.
The LSH South Coast capital markets team has been involved in a number of high profile transactions, the majority of which have completed off-market to major institutions and local private clients.
Key investment transactions
· LSH was involved in advising Threadneedle on the acquisition of Titchfield Park Industrial Estate, Segensworth, a deal in excess of £9.3m, reflecting a net initial yield 7.7%. The estate amounts to approximately 135,000 Sq Ft and was purchased from Highcross with the majority of the Space let to Meggitt Plc.
· Both the capital market and industrial logistics divisions of LSH were involved in advising CBRE Global Investors in the acquisition of Murrills Industrial Estate, Porchester from Staffordshire County Council. The acquisition amounted to approximately £6.05m reflecting a net initial yield of 8%. CBRE Global Investors has retained LSH as the new Letting Agents on the vacant space of the estate.
· LSH was involved in the acquisition of two single let industrial warehouse units. CBRE Global Investors acquired Unit 42 Oriana Way, Nursling, adding to their holdings on the estate. The Unit was let to Nuance Group for five years and was brought for £4.5m, reflecting a net initial yield of 8%.
· LSH advised Lewis Investments on the acquisitions of Unit 2 Stephenson Way, Segensworth, for Goldman Sachs. The Unit amounts to 30,000 Sp Ft and was let to McFarlane Group for seven years and was bought for £3m, reflecting an initial yield of 7.75%.
· LSH Capital Market Team sold a new Retail Parade that has been developed by Gentian Group with tenants including the Co-op, Deli Marche and Subway. Development is next too Basingstoke Hospital and was acquired by The Local Shopping REIT for £1.76m, reflecting a net initial yield of 7%.
Jerry Vigus, Director of South Coast capital markets at Lambert Smith Hampton, says: “It has been a busy and productive year working with a number of UK Institutions and property companies looking to add to their portfolios on the South Coast. This has enabled us to secure a number of off-market transactions and we are continuing to work on a number of other projects both on the South Coast and further afield.
“Investors are attracted to the South Coast due to the lack of supply of quality industrial and office buildings and see this as an opportunity to acquire particularly in an area where there is limited supply.”
