Colliers International has represented Marchmont Investment Management on the off-market acquisition of a 30,000 sq ft industrial unit in Mitcham, London from a private investor for £4.38 million. The deal represents a net initial yield of 5.04%.
The property, Unit 18, is located on the established Mitcham Industrial Estate and let to Team Sport until August 2036, generating a rental income of £235,000 per annum. Nearby occupiers on the estate include Screwfix, Storage King and Selco. Just 8.5 miles from Central London the asset benefits from excellent road links to the capital, Gatwick Airport and the wider South East.
James Rodwell, Associate Director at Marchmont, commented: “This Greater London acquisition is an excellent addition to our growing portfolio. The strong real estate fundamentals combined with the low passing rent provides us with medium term angles to drive our returns. We continue to seek well-located industrial investments in both London and the South East. Securing such opportunities remain challenging due to the level of competition and we are delighted to have acquired this opportunity off-market.”