Avison Young, the world’s fastest-growing commercial real estate services firm, has advised a private client on the sale of the virtual freehold of an industrial property in Mitcham, London to a private investor for £4.25 million, representing a net initial yield of 5.19%.
The property, which lies within the Mitcham Industrial Estate, is a detached industrial unit totaling 29,109 sqft (2,704 sq m). It is let to Go Karting For Fun Ltd on a lease expiring in 2036 (with tenants break option in 2026 and 2031), providing an annual rental income of £235,000, and has recently undergone an extensive fit-out as an indoor go-karting track.
Mark Holliday, Principal, Capital Markets, Avison Young, said: “Having recently let the unit, this is an excellent result for our client. The sale offered a rare opportunity to acquire a well let industrial property in a highly in-demand industrial location in Greater London. London Industrial is probably the most sought after investment product at present and the lack of availability of stock is making this even more acute’’.
Mitcham Industrial Estate in the London Borough of Merton is an established industrial location, offering good road connections to the A217 and A237, which give direct access to Central London and the M25 motorway. 8.5 miles to the south-West of Central London, it also benefits from excellent rail and bus connections and proximity to major airports.
Robinsons were joint selling agent. Colliers advised the buyer.