Tungsten Properties, one of the UK’s leading mid-box industrial and warehouse developers, has sold units 1 to 4 at its new warehouse and industrial project at Downs Road in Witney, Oxfordshire, to Ropemaker Properties, part of BP Pension Fund, in an off-market transaction for £26 million.
Units 1-4 total 195,000 sq ft and are part of phase 1 of the seven-warehouse and industrial building project. Practical completion was reached in July 2021 with 80% now sold or let.
Phase 2 is subject to a planning application which has been submitted to West Oxfordshire District Council and will encompass 169,000 sq ft of new employment space across four buildings. Subject to approval, this will bring the whole project to total 490,000 sq ft.
Units 2, 3 and 4 are fully let to Meech International, one of the leading manufacturers of static control, web cleaning and compressed air technology which took 22,000 sq ft, a confidential occupier which took 28,000 sq ft, and Certikin International, Britain’s largest manufacturer and distributor of swimming pool equipment which took 125,000 sq ft respectively. Unit 1 totals 20,000 sq ft and has strong interest.
For the rest of phase 1, unit 7 was sold to Rofgo Venture Ltd earlier in the year, and units 5b and 5c are due to complete imminently, with five units of 11,000 sq ft available.
David Mole, development director, Tungsten Properties said: “The recent lettings underpin the strength of the West Oxfordshire market, in particular the discrepancy between demand and supply of new, high spec employment space. This speculative scheme has proved extremely successful, with 80% of phase 1 being let or sold prior to practical completion. The sale to Ropemaker Properties reflects the current high demand from investors for well-located, built and let buildings. We have strong interest for the remaining units from fast-growing companies needing manufacturing and warehousing space in Oxfordshire. We look forward to delivering phase 2 to build further space to help boost jobs and the economy.”
Jeff Penman, managing director, Tungsten Properties said: “This is our first significant development using the Tungsten balance sheet, coupled with our £50m Revolving Credit Facility from Fortwell Capital. This relationship has allowed us to achieve full value from the exit sale.”
Andrew Franck-Steier, director, Franck-Steier Price, who acted on behalf of Tungsten Properties added: “To have sold these prime Witney buildings off-market is testament to Tungsten Properties’ position as a leading developer of high-quality units and the covenants that they have attracted from well-established and rapidly growing businesses. There continues to be substantial demand for the right high-quality product in the right location.”
For the sale, Franck-Steier Price acted on behalf Tungsten Properties; and Griffiths Eccles acted for Ropemaker Properties. Carter Jonas and VSL acted on behalf of Tungsten Properties for the lettings.