Quick sale shows heat is on for Swansea industrial stock

Strong occupier demand for good quality industrial accommodation was a key factor in the quick sale of the former Pure Wafer factory in Swansea Vale says Lambert Smith Hampton (LSH).

Acting on behalf of a private investor, the national commercial property consultancy has negotiated a purchase price of almost £1.5million for a sale of the long leasehold interest with buyers Western Power and Distribution (South Wales) Plc.

According to LSH a number of companies were interested in purchasing the 47,500 sq ft property which occupies a 4.88 acre site on Millbrook Drive some four miles north of Swansea’s city centre.

What was once a silicon wafer factory, closed in 2015 after extensive fire damage. It was then sold to new owners in March 2016 and the premises was fully refurbished in order to meet the health, safety and high operational standards that today’s occupiers expect.

“The strong interest this site received following its renovation points to a compelling case for refurbishment of outdated stock as well as speculative development,” says LSH’s Jason Thorne.

“There is a severe shortage of good quality accommodation in the current south west Wales market, so it makes sense for investors to focus on improving obsolete, well-located stock. Development funders should also look for opportunities in areas that will benefit from planned road infrastructure improvements.”

JLL acted for Western Power Distribution, the electricity distribution and network operator for the Midlands, the south west and Wales. Says JLL’s Chris Sutton: “As part of their ongoing investment programme, our clients were keen to identify high quality premises centrally located within Swansea. The Millbrook Drive site provides an excellent business environment and we were pleased to work with LSH and their clients to conclude this transaction.”