A number of high profile investment deals have been completed by the Lambert Smith Hampton South Coast team recently, demonstrating the strength of the investment market post-Brexit.
LSH advised Portsmouth City Council in its acquisition of a new 100,000 sq ft warehouse in Minworth, West Midlands, let to DHL for 10 years at a price of £12.4m, equating to a net initial yield of 5.05%. The unit was constructed speculatively by Bericote and funded by Rockspring.
The team has also recently acquired a prime trade counter unit in the Thames Valley, let to Jewson’s with 14.5 years remaining on the lease. The transaction was agreed on behalf of CBRE Global Investors at a price of £8.77m, reflecting a net initial yield of 5.15%.
In a third deal underlining the investment market’s resilience, three units have been acquired on the Chandlers Ford Industrial Estate on behalf of a local property company at a price of £3.3m, reflecting a net initial yield of 7%.
Jerry Vigus, director of capital markets for Lambert Smith Hampton, comments; “These recent deals highlight the encouraging level of activity being experienced by the prime industrial/warehouse market. Investors, both institutional and local authority, are still looking to acquire prime assets which are let to strong covenants, reflecting that this market sector has seen little impact and is enjoying continued occupier demand.
“There are also still a number of institutions and property companies looking to invest in secondary and tertiary assets, where they believe they can add value due to the lack of supply of existing industrial/warehouse units.”
