Peveril Securities and Marchmont Investment Management have sold South Central, an urban logistic warehouse in Orpington. Savills advised Peveril and Marchmont on their original purchase of the property in Q4 2018 for c. £9 million. Following an extensive refurbishment and new letting, contracts have now exchanged to sell the property to Aviva Investors for c. £15 million, reflecting a net initial yield of 4.6%.
The self-contained logistics unit extends to 53,587 sq ft (4,987 sq m) with a yard depth of 39.5 metres. Marchmont fully refurbished South Central which was subsequently let within two months to CSM Sport & Entertainment LLP on a new 15 year lease, at a headline rent of £14.00 per sq ft. The refurbishment saw the replacement and installation of additional loading doors, new carpets and suspended ceilings in the office space and new flooring in the warehouse.
Located in Orpington, the property is under 16 miles from central London and is one of the capital’s core industrial markets. South Central benefits from excellent access to the M25 and direct road and railway links to London.
Tom Scott, director in the investment team at Savills, comments: “The refurbishment that Marchmont undertook at South Central has meant it is now one of the best specified warehouses in the area. The new tenant and subsequent sale to Aviva Investors is testament to this. We are pleased to have advised on the successful sale of this asset for our client at a price that demonstrates the resilience of the investment market for prime logistics property.”
Savills advised Marchmont Investment Management on the investment sale. Aviva Investors was represented by Knight Frank.
Savills and Montagu Evans advised on the letting of South Central Orpington to CSM Sport & Entertainment LLP.
