A Cardiff-based commercial agent has announced a hat-trick of investment deals throughout Wales.
EJ Hales has secured investment opportunities across the retail and commercial sectors that are worth in excess of £2.8 million.
Acting on behalf of a private Manchester property company, EJ Hales purchased Cibyn Industrial Estate in Caernarfon for £750,000. With a current rent roll of just over £75,000 per annum, this equates to an initial net yield of 9.5% and a capital value of £22.50 per sq ft.
The private Manchester property company has also been able to secure an occupier for the vacant unit during the sales process providing a good income return and a low capital value per sq ft and a reversionary yield of 15%.
Dan Griffiths, partner at EJ Hales, said: “This investment ideally fitted our client’s requirement, which was for multi-let purpose built industrial estates in strong locations where there is limited competition.
“It is typical of the type of stock small property companies are looking for, providing a high income return whilst the multi-let nature of the investment spreads the risk.”
Adding to the investment deals, EJ Hales purchased a single let office investment in Swansea from Standard Life for £1.3 million. Admiral House, Phase II Telelink, Swansea, was let to Admiral Insurance, has been acquired by Cardiff-based PHG Capital.
The investment provides a high income return of 15%, with a rent of £5.50 per sq ft.
Mr Griffiths added: “This deal was a great opportunity as PHG was buying off a low capital value of £34 per sq ft, which shows strong potential for capital growth going forward. Furthermore, as Admiral is keen to continue the lease, it has provided PHG Capital with the potential of a lease re-gear.”
Making up the hat-trick, EJ Hales has purchased Iceland on Cowbridge Road East, Cardiff, for a private family investment company for £765,000.
The property was let to Iceland on a 25 year lease expiring 2030, subject to a break in 2025, guaranteeing income for the investment company for over nine years, potentially longer.
The net income after the ground rent is £55,000, showing a net initial yield of 7%.
Mr Griffiths continued: “The attraction to our client was the safe income return to a strong foodstore operator. In addition, there is the potential to redevelop the upper floors for residential use, as is happening in the surrounding buildings, adding value to the investment.
“Cowbridge Road East continues to perform strongly in the current market, is popular with both retailers and A3 operators, and has always been a very affordable pitch. It was the ideal investment for a family property company.
“We are delighted to have helped all three clients secure investment opportunities in Wales as it goes to demonstrates that Wales is now competing on a national level. It’s been a great year for our investment team which is highlighted by these latest deals. We’re looking forward to an equally strong 2016.”
EJ Hales has been at the forefront of the South Wales commercial property market for over 80 years. The practice specialises in retail and leisure property, both in town centre and out of centre locations and advises on some of the largest developments in South Wales. Clients include Tesco, Next, Argos, Subway, Specsavers, UBS, M & G Real Estate and Aberdeen Asset management and Mansford.