Altitude Investments, a boutique investment agency based in the South West & The Midlands, are pleased to report the recent acquisition of an industrial investment in Exeter, on behalf of South Somerset District Council.
The property, comprising two industrial buildings totalling 72,246 square feet, occupies a prominent location on the well-established Sowton Industrial Estate, between the M5 and Exeter city centre.
Having historically served various industrial and office purposes, Centurion Mill is now arranged as multi-let warehouse and trade-counter accommodation. The purchase included, a modern steel portal framed industrial unit, constructed in 2016.
The property’s principal tenant is Stovax Heating Group Limited, who are headquartered on the estate and use this unit in combination with three units immediately to the north as their main distribution centre. Other tenants include Greggs, the largest bakery chain in the UK with over 1,850 outlets and circa 20,000 employees, and Devondale Electrical Distributors Ltd, an electrical wholesaler with growing regional presence.
The property was acquired for £4,200,000 which reflects a NIY of 7.0%.
The purchase forms part of the Council’s investment strategy, which is focused on finding value within a competitive market, to help provide an income. The connection to Junction 30 of the M5 ensures that the long term investment value is underpinned by rising land values.
The Council’s Portfolio Holder John Clark comments; “With a premium location, established tenants and great value-adding potential, this property provides an excellent opportunity for us. We are delighted to get such a strong investment in the competitive industrial market at a yield of 7%.”
Tom Vantreen, director or Altitude comments “We are delighted to have been able to assist the council with the purchase of Centurion Mill. The Exeter industrial market has very low levels of availability and we believe that a well located asset such as this will perform strongly for the council.”
Altitude have had a very strong year so far, transacting c.£70 million to date, with another c.£30 million under offer. Tom continues “We have active requirements for investments from £5m + in the offices, industrial and hotel sectors throughout the UK”
