Worcestershire commercial property consultancy GJS Dillon has sold the freehold of an 8,800 sq ft industrial unit in Bromsgrove to the current tenant, a German-owned precision engineering company.
Acting on behalf of a private investor, John Dillon, managing director of GJS Dillon, has sold Unit 1 Buntsford Park Road, Bromsgrove, BD60 3DX, for £495,000, to manufacturing company 2KM (UK) Limited which has rented the 8,832 sq ft (820 sq m) industrial unit for the past five years.
2KM (UK) Limited has been operating in Bromsgrove since 1998. Its move to Unit 1 Buntsford Park Road five years ago marked a phase of new investment and expansion for the company. Now employing 18 people in Bromsgrove and 70 people at its German HQ, with sales offices in China and North America, it supplies specialist machinery and dispensing systems to the automotive, aerospace, medical and offshore industries worldwide. Its decision to purchase the freehold of its unit underscores the confidence the company has in the post-Brexit UK industrial economy.
Rob McLaren, managing director of 2KM (UK) Limited says: “2KM has been operating in the UK since 1986 through distributors and then formed the UK side of the business in 1998. From that date the company has been centred in Bromsgrove and has had steady growth to the current turnover of around £3,000,000 per annum. Two years ago the company started to manufacture machines in the UK and thought it an ideal time to put down a permanent base in the Midlands.
“The Germany company has now sold 45% of the company to the UK owners and this investment has enabled the purchase of the property. Working closely with GJS Dillon and our banking partners Nat West, funding was secured to enable the purchase of the building, giving a firm platform for growth and investment in the UK.”
Mr Dillon says: “When the lease was first granted, there was an option to purchase. I am delighted that 2KM (UK) Limited has finally decided to buy the freehold. This is not only a confidence boost for the Bromsgrove, Worcestershire and UK economy in the post-Brexit era, but also a sound financial decision due to the current and increasing shortage of industrial premises in Worcestershire available for purchase, which continues to push up freehold values. There has rarely been a better time for freeholders to sell.”
Located on Buntsford Park Road, on the outskirts of Bromsgrove town centre, and within two miles of junctions 4 and 5 of the M5 motorway and junction 1 of the M42 motorway, Unit 1 Buntsford Park Road is a prominent unit, well known locally as the former home of GS Print which operated from the premises for some 25 years, until 2KM (UK) Limited took on the lease. The private vendor of the unit is Edmund Gray, former managing director of GS Print.
Mr Gray says: “I am delighted to see 2KM’s business continue to thrive in the location where I ran a successful business for 25 years.”