35,240 sq ft Industrial Warehouse Acquisition
We recently acquired a 28,000 sq ft multi-let office building in Coleshill in an off market deal on behalf of a Manchester based investor.
In a market where yields are currently 6-8%, the deal represents extremely good value and is further evidence of the benefits of the investment market in the region.
5 reasons to invest in commercial property in the Midlands
Sam Sutton, director at Phillips Sutton Associates, gives his 5 reasons why investing in the Midlands is a good move for those looking to expand their property portfolio.
1. The Midlands is seen as a prosperous place to invest, with a good road and rail network. It is well-connected, with good supply of labour and a quality workforce. The region has a strong rental market with good companies and offers genuine prospects for rental growth.
2. This rental growth is most pronounced in the area’s strong, established commercial areas. A lack of stock is causing a supply/demand imbalance, whilst a lack of speculative development for a number of years has helped to cause this imbalance.
3. If in doubt, opt for industrial property. Office investment depends on the offer, but there remain good opportunities to buy low capital value psf buildings and multi let asset management opportunities that will bring a good return on an investment.
4. The Midlands is a “safe” location for investment. Speculative development has returned to this area, which has had a knock on effect on the secondary market in this location, but prime good quality has been unaffected.
5. An investor can ask for higher rents for the right product. Well located, refurbished, well specified buildings should bring a higher rent. We are starting to see tenants running out of options for buildings, and more than one occupier gunning for the same building. We feel that it has turned and the market is now favouring landlords again.
So, if you are looking for opportunities to invest, consider the Midlands, there is great value to be found, if you know where to look. Of course, we do!
Phillips Sutton have let Unit 6 The I O Centre, in Northampton to Click for Games Limited. Acting on behalf of F&C Property Growth and Income Fund ICVC, the 6,761 sq ft unit is on a 5 year lease at a rent of £42,256 per annum.
Moving business premises can be complex and time consuming, so why not let us help you?
We can help with all your property search needs, from property brief, space planning and searches through to budgets, accompanied viewings and lease negotiation.
We have recently taken instructions from two separate clients requiring out of town office space in Leicester.
Please see phillips-sutton-acquisition-brochure for more information.
Bromwich Court, Coleshill
27,629 sq ft multi let office investment
Client: David Samuel Properties
First Floor Mansion House
4,000 sq ft office letting to Jak Ltd
Client: Roundhaven Ltd
3rd and 4th Floors Peat House, Leicester
20,000 Sq ft office letting to Bellrock UK.
Client REI PLC
Acting on behalf of Sladen Estates and Peveril Securities, Phillips Sutton and Moriarty & Co have let the 219,686 sq ft ‘BIG Stan’ warehouse on Trentham Lakes in Stoke on Trent.
The unit was extensively refurbished and extended to provide a high specification distribution warehouse, which was taken by Amazon on a 10 year lease.
Phillips Sutton have successfully concluded the re gear of a substantial lease on behalf of a private property company.
The lease on the 55,000 sq ft warehouse was restructured to the benefit of both parties, providing flexibility to the tenant whilst obtaining a rental increase of over 12% in favour of the landlord.
Phillips Sutton successfully disposed of a vacant freehold office in Leamington Spa on behalf of Charles Church Developments.
The office on Tancred Close, Jephson Court, extended to 5,900 sq ft and was sold within 1 week of the property being marketed. The office building was purchased by a private investor for £650,000.
Savills Investment Management has completed the major refurbishment of an industrial warehouse at Rosevale Business Park in Newcastle-Under-Lyme, Staffordshire. Savills and Phillips Sutton are instructed as joint letting agents for the property.
The detached unit totals comprises 114,520 sq ft (10,639 sq m) including 23,829 sq ft (2,213 sq m) of office space and has consent for business, industrial or storage and distribution use. It also features two service yards plus 128 car parking spaces.
Located within the Rosevale Business Park, the property is less than one mile from the A34 which provides links to the A500 and M6 motorway.
Sam Sutton, director at Phillips Sutton, comments: “Across the Midlands we are seeing demand for high quality industrial stock outweigh supply. Following the completion of its refurbishment, this property will offer much needed additional space and we are anticipating strong interest from potential occupiers.”
Acting jointly with Darby Keye Property and Harris Lamb, Phillips Sutton have let Unit 1 Maple Leaf Industrial Estate, in Walsall to local occupier Event Hire UK. Acting on behalf of IO Asset Management, the 27,488 sq ft unit was on a 5 year lease at a rent of £110,000 per annum.
Acting on behalf of a private pension fund, Phillips Sutton have advised on the lettings of 5 office suites providing the owners with a fully let building.
Charnwood Court on New Walk in Leicester is a 17,000 sq ft office building at the heart of the conservation area on Leicester’s New Walk.
Prior to Phillips Sutton’s involvement the building was 75% vacant, but following a sustained marketing campaign over an 18 month period, the building was let to occupiers including Cambridge and Counties Bank, Smith Partnership, Couch Perry Wilkes and Smart Recruitment UK.
Following the successful take up of the building, the client was able to exit their holdings via an investment sale.
Following a period of 12 months of marketing, Grafton Trade Park is fully let. On behalf of CBRE Global Investors, joint agents Phillips Sutton and Underwoods have let three vacant units ranging in size from 3,200 sq ft to 5,500 sq ft to a variety of local and regional businesses all on 10 year lease terms at headline rents of £6 psf.
Following the recent take up on the estate, CBRE Global Investors have sold the investment.
Acting on behalf of a London based property company, Phillips Sutton have advised on the acquisition of a single let industrial warehouse investment in Aylesbury.
The 33,281 sq ft warehouse is let to ATG Training on a lease expiring in July 2023 at a rent of £195,000 per annum.
The investment was purchased from the receivers for a price of £2 million which reflected a NIY of 9.21%.
BNP advised the vendor.
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Acting on behalf of M7 Real Estate, Phillips Sutton have advised on the acquisition of a mixed use office and retail investment in Nottingham City Centre.
The mixed use block produces an income of £569,197 and is let to Tesco until 2023 and benefits from open RPI rent reviews, whilst the offices are let to an NHS Surgery for a further 7.5 years.
The investment was purchased for a price of £3.25m which reflected a NIY of 16.5%.
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Phillips Sutton Associates recently advised on the acquisition of a 37,500 sq ft industrial unit in Eastwood, Nottingham.
Acting on behalf of a private family property company Phillips Sutton provided advice on the acquisition of the industrial units purchased from Chromalloy for £810,000.
Phillips Sutton have been retained to let the vacant units which will undergo a refurbishment programme to provide industrial/trade counter space ranging from 9,281 – 32,496 sq ft.
Phillips Sutton Associates have advised on the acquisition of a retail warehouse investment on behalf of Mucklows.
Phillips Sutton Associates has recently advised on the acquisition of a retail warehouse investment in Leicester.
Let to Matalan for a further 7 years at a rent of £182,000 per annum, the investment was purchased by A&J Mucklows in an off market transaction with CBRE Global Investors.
The purchase price of £2.65m reflected a NIY of 6.5%.
The vendor was represented by FSP.
Phillips Sutton advise on the acquisition of a multi let industrial estate in Telford on behalf of a private family property company.
Phillips Sutton Associates has recently completed the acquisition of an 85,452 sq ft multi let industrial estate in Telford on behalf of a private family property company.
The estate comprises 15 units, which are fully let producing an income of £327,568 per annum.
The estate was purchased for a price of £3.1m which reflected a net intial yield of 10%.
Knight Frank acted for the vendor, Granite Estates.
Phillips Sutton Associates have recently acquired a multi let industrial estate in Walsall on behalf of IO Asset Management.
Phillips Sutton Associates has recently completed the acquisition of an 82,000 sq ft 14 unit industrial estate on Bloxwich Lane in Wallsall.
The estate was purchased by IO Asset Management in an off market transaction for £2.85 million.
Harris Lamb represented the vendor.
Phillips Sutton, Darby Keye and Harris Lamb have all been retained by the purchaser to let the vacant units.
Phillips Sutton has recently completed the sale of a warehouse investment on behalf of a private client.
Phillips Sutton Associates has recently completed the sale of a 24,124 sq ft warehouse in Hinckley on behalf of a private client.
The warehouse is located on Farraday Road, Harrowbrook Industrial Estate in Hinckley, occupying a prominent location at the front of the estate.
The unit is let to Triumph Motorcycles until January 2018 at a rent of £81,500 per annum and is held on full repairing and insuring terms.
The unit was sold for a price of £900,000 which reflected a NIY of 8.56% after purchasers costs of 5.8%.
The purchaser was the Trustees of Bloor Holdings Limted and were represented by James Blenkin and Company.
Phillips Sutton advise on the disposal of a 16,500 sq ft warehouse in St Albans.
Acting on behalf of the Daily Mail Pension Fund, Phillips Sutton have advised on the freehold disposal of a 16,500 sq ft industrial warehouse unit on Brick Knoll Park, St Albans.
The unit was purchased by the St Albans Vineyard Church for £1.3 million.
Phillips Sutton advise on the sale of a prime industrial warehouse investment.
Acting on behalf of Harwood Real Estate, Phillips Sutton have advised on the sale of a 28,000 sq ft industrial warehouse investment on Meridian Business Park, Leicester.
The unit was let to a subsidiary of Thales UK on a 10 year lease with a break at the end of the 6th year at a rent of £145,000 per annum.
The purchase price of £2,030,000 reflected a NIY of 6.75% after normal purchasers costs of 5.8%.
Shortland Penn and Moore advised the purchaser, A&J Mucklow.
Phillips Sutton acquire a COOP convenience retail investment in Nottingham.
Acting on behalf of a private investor, Phillips Sutton have advised on the acquisition of the freehold interest in 4,500 sq ft purpose built convenience retail store let to the Midlands Cooperative Society on a 15 year lease with a break at the end of the 10th year, at a rent of £55,125 per annum.
The invesment was purchased on a forward commitment basis for a price of £785,000 which reflected a NIY of 6.63%
Phillips Sutton have successfully sold the 178,016 sq ft former HW Plastics warehouse unit on Trentham Lakes.
Acting on behalf of Helix Advisors, Phillips Sutton have sold the 178,016 sq ft warehouse unit to Sladen Estates and Peverill Securities.
The former HW Plastics unit which had been vacant for just over 12 months was sold for £6.41 million.
Sladen Estates intends to fully refurbish and extend the unit to provide 220,000 sq ft of distribution warehouse space, which will be the only available warehouse of its kind in Stoke on Trent.
Phillips Sutton have been retained to advise on the leasehold disposal along with Moriarty & Co.
Phillips Sutton have sold a student residential investment with development potential for £1.235 million.
Acting on behalf of York Road Developments, Phillips Sutton have advised on the disposal of a fully let 17 bed student residential investment, in addition to an adjacent office building on York Road, Leicester with planning permission for a 15 bed student scheme.
The 17 bed scheme was fully let for 2014/2015 and produced a gross income of £89,000. The investment which was bought by private clients of Fothergill Wyatt showed a net initial yield of 8.99%.
Phillips Sutton advise on the acquisition of a 151,000 sq ft multi-let industrial estate in Banbury
Advising Tilstone Investments LLP, Phillips Sutton Associates have provided advice on the acquisition of Tramways Industrial Estate in Banbury.
The investment comprises a mulit-let industrial warehouse scheme of 151,000 sq ft in 10 units let to 4 tenants producing £549,871 per annum.
The purchase price equated to just over £5.5m, a capital value of £36 psf and a NIY of 9.44%.
The vendor was represented by GVA.