Developer and investor Kingsbridge Estates has completed the £8.8million sale of an 82,000 sq ft warehouse unit in Chichester, West Sussex.
The sale of Unit 1 at Chichester Food Park comes after Kingsbridge, which manages the park on behalf of a consortium of owners, extended the property and added revenue-generating solar panels to its roof.
Following the works, Kingsbridge negotiated a new 20-year lease with the tenant who will continue to operate from the unit.
The sale price of the virtual-freehold interest in Unit 1 represents a net initial yield of 6.24% and reflects the renewed lease arrangement, indexed rental uplifts and anticipated income from the solar panels.
The purchase was made by private overseas investors represented by the south coast offices of Lambert Smith Hampton (LSH). Real estate advisors DTRE acted for the vendor.
Chris Fry, Chief Executive of Kingsbridge Estates, said: “This transaction demonstrates our all-round asset management capabilities. Having maximised the value of the unit, we have now sold, enabling us to reinvest in new developments and value add opportunities.
“These projects include a multi-unit industrial/warehouse scheme under way at Concorde Park, Segensworth, and a multi-unit scheme at New Lane, Havant, for which we have recently obtained planning consent.”
Jerry Vigus, director of capital markets and logistics at LSH, said: “Having been involved in originally letting the unit for Kingsbridge Estates, we knew the unit and park well and were therefore able to offer comprehensive advice to our clients. This transaction represents a substantial investment for our clients, who have secured a long-term interest in a well-managed business park.”
Kingsbridge Estates, founded in 2004 and based in Tangmere, near Chichester, has a growing portfolio of industrial developments and holds office and retail assets.