Lambert Smith Hampton has acquired Marchwood and Cracknore Hard Industrial Estates for Associated British Ports (ABP).
ABP purchased the sites’ freehold as an addition to its existing holdings in the city and on Southampton Water. Oceanic Estates, for whom Jones Lang LaSalle acted, has owned the estates for 15 years.
The estates are one of the largest self-contained industrial/warehouse holdings in the South East with a total area of 113.73 acres, benefitting from B1, B2 and B8 uses.
The estates are two of very few in Hampshire offering open storage use and units with large self-contained yards, and have attracted occupiers, such as Ocado, LaFarge, Biffa, ATS Euromaster, Royal Mail, Elliott Group and Veolia.
Jerry Vigus, Director of Capital Markets at Lambert Smith Hampton, said: “We were aware of Oceanic Estate’s intentions to market the estates selectively to a number of property companies. With our knowledge of the sites, having been letting agents on the parks for a number of years, we were able to provide ABP with the advice required to secure the opportunity.”
The estates are located on the western side of Southampton water, opposite the cruise terminal and Southampton Docks, accessed via the A326 Marchwood bypass which links into the A35, and are six miles from the M271.
Nick Ridehalgh, Port Director at ABP Southampton, said: “Once we were aware of Oceanic Estate’s intention to sell the sites, we moved quickly to secure them. We see the sites as providing strategic long term value and they fit well within our existing business and landholdings. Our intention is to continue to develop the estates to increase the income and better provide for the essential B1, B2 and B8 uses that support and directly contribute to the economic success of the Port of Southampton and the wider region.”
The sale and purchase of these estates strengthens the South Coast as a location which is attractive to UK institutions and property companies alike. The region is continuing to experience a shortage of good quality industrial/warehouse accommodation, which is why a number of commercial property developers and investors are keen to look at opportunities.
A spokesperson for Oceanic Estates said: “We have owned the sites for approximately 15 years and have carried out a substantial amount of investment but felt that it was time to look at other opportunities. With the investment market being so active, there was no shortage of interest from potential purchasers. The transaction went smoothly on what is a fairly complicated combined estate, bearing in mind the size and the number of tenants.”
The Jones Lang LaSalle team who handled the sale on behalf of Oceanic Estates, Neville Pritchard and Sarah Martin, Director and Associate Director respectively of National Investment, and Michael Green, Lead Director of the Southampton Office, concurred that ABP had performed swiftly: “We undertook a targeted marketing of this asset, one of the largest industrial estates to have transacted in 2014, and received strong interest, much of which was institutional. Our strategy resulted in a number of offers and a rapid exchange of contracts, symptomatic of what has proven to be a particularly strong year for the investment market.”
