STRENGTH IN DEPTH FOR INVESTMENT MARKET
A number of commercial property investments have appeared on the market recently in Basingstoke, undoubtedly a sign that there is continued strength and ‘weight of money’ in the investment sector. Demand for prime or Grade A product in the south-east continues unabated, as it has throughout the year, but yields have now hardened for secondary product as well.
A selection of current activity in Basingstoke includes:
- Chineham Park – where MEPC are seeking to sell their 90 acre scheme as part of a portfolio of 3 of its 7 UK business parks. The best interest is reportedly from a selection of substantial joint venture bidders such as Oaktree Capital and Patrizia. Offers are currently anticipated over the original £400 million guide price.
- Churchill Plaza – the landmark 135,000 ‘blue skyscraper’ in the centre of town has been up for grabs recently with a price tag of £10 million and a short term lease in place with Barclays plc. The investment is believed to be under offer.
- Intec Business Park – generally regarded as a ‘first generation’ business park, Valad Properties are now seeking to sell this 13 acre scheme in Wade Road, at an attractive guide price of £5 million. This reflects a capital value of just £30.00 per , but much of the Park is vacant, and the investment forms a rather less attractive long leasehold interest held from The Council.
- The Lister Road Industrial Estate – a 7 acre industrial and warehouse development constructed in the 1980’s, let to 13 tenants across 20 units, with a couple of existing ‘voids’. This scheme was sold a couple of months ago at a yield which allegedly reflected circa 6.5%, driven down from the original guide of 7.2% – proof that the Funds are back in this market with serious intent.
- Marlborough Mews Industrial Estate – a multi let industrial terrace with 5 separate buildings and tenants. Believed to be under offer only a month or so after emerging onto the market at a guide price of £2.5 million (a 7.5% yield).
- Springpark House – forming one of the buildings on the upper tier of Basing View and part let to accountants Baker Tilly and part to South West Trains. The remaining ‘void’ space coupled with the long leasehold nature of the tenure (rather than freehold) meant that the building was “priced to sell”, but sell it did, for around £750,000. Had the same investment appeared within the market 12 months ago, it would most likely have remained unsold.
Further investment opportunities seem destined to become available as existing landlords take advantage of improving demand in the sector, and under such circumstances, yields remain keen.
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