Acting on behalf of CBRE Global Investors, Lambert Smith Hampton has agreed the letting of Unit 17-18 Oriana Way, Nursling, Southampton to DFS Trading Limited, represented by Savills. The building is undergoing a £500,000 full refurbishment to include a new roof and additional loading door.
LSH acquired the 30,621 sq ft property on behalf of CBREGI for £2.1 million earlier this year and following a short marketing period identified three prospective tenants for the property before agreeing terms with DFS in July.
Director of industrial and logistics agency at LSH, Adrian Whitfield, comments: “The key for this acquisition and letting is the new demand driver for warehouse space in the UK from e-commerce and non-food retailers who are following food retailers by changing their distribution networks. LSH and Savills had been in discussions about this potential requirement for a period of time and when the search was reactivated earlier this year, at the same time the unit became available, LSH moved quickly to secure a letting to DFS.”
Tom Clews, fund manager at CBREGI explains: “Due to a shortage of stock in this area, LSH recommended a strategic acquisition adjacent to the current holding with full refurbishment to enable CBREGI to secure a substantial covenant and long term lease to enhance the investment value. This strategy resulted in three parties competitively bidding to lease the property, which was reflected in the terms agreed.
Martin Hastelow, head of Savills’ Southampton office, adds: “Our client’s requirement was very specific in terms of loading facilities and yard area. There were no existing buildings that met those requirements and our client was unwilling to look at a new build. We were pleased that CBREGI and LSH were proactive in working with us to agree refurbishment and alterations that addressed our client’s needs.
A ten year lease was agreed. Vail Williams was joint agent with LSH.
