The Capital Markets team of Knight Frank in Cardiff has sold an office building on Bridgend Science Park for £2.41 million.
Acting on behalf of a fund managed by industrial developer and asset manager, Chancerygate, Knight Frank completed the sale of the virtual freehold of Unit 3 to Hastingwood Securities in a transaction representing a Net Initial Yield of 8.45%.
The modern 16,842 sq ft two-storey office building occupies a 4.35 acre site on the Bridgend Science Park, near Junction 35 in Bridgend. The building is fully occupied by 3M Healthcare which operates as a research, development and manufacturing facility specialising in producing food safety testing materials and equipment. It attracts a current rent of £217,677 per annum, which is set to increase in three years’ time to £257,948 per annum.
Gareth Lloyd, partner at Knight Frank said: “This was an off-market disposal of a good quality office park investment with a strong occupational story let to a first-class covenant, and with fixed rental uplift in 2021.
“Our client felt this was an opportune time to capitalise on the keen interest in regional office investments from a wide range of investors now seeking value in the regions and attracted to South Wales by its growing profile.”
Simon Barrs, Asset Manager at Chancerygate added: “We were delighted to secure a sale achieving a very strong price and we will be reinvesting the proceeds in acquiring new opportunities to expand the fund’s portfolio.”
Brian Cook of purchaser Hastingwood Securities commented: “We were attracted by the high quality tenant, strong occupational profile and long-term income offered by this building.”
Hastingwood was represented in the transaction by property agents Powell Lloyd. James Sanders of Powell Lloyd said: “This represents the company’s second strategic acquisition in South Wales recently, demonstrating its confidence in the region.”
Bridgend Science Park was established in the early 1990’s to provide research and development premises and is home to a number of well-regarded global occupiers including Severn Trent Water, Phontronics and CGI.