Altitude Investments, a boutique investment agency based in The Midlands & the South West, have announce their first deal of the year with the purchase of an industrial investment in Yateley, Hampshire.
The asset, acquired on behalf of a private investment vehicle that Altitude work with, is located on Blackbushe business Park, just off the M3. The building totals c.25,000 sq ft (2,250 sq m) and is let to the strong covenant of Trescal Limited – a wholly owned subsidiary of Paris based Trescal Group International Limited.
Trescal have a full repairing lease until January 2027 with no breaks at a current rent £9.17 psf. This is considered to be reversionary, with nearby business parks achieving over £11 psf.
There is a real lack of supply of good value industrial assets in the region. With considerable growth in demand of light industrial units in this location, it is a quality asset for any investor to hold. The asset was acquired for £3,250,000 representing a net initial yield of 6.4% rising to just under 7.5% in 2022, off the back of a fixed rental increase.
George Turnbull, director at Altitude comments “we are very pleased with this acquisition, the asset gives the portfolio further exposure to the thriving south east industrial market. This has been a strategy for this portfolio, and it’s great to acquire this in such a short timescale. The sheds market has been booming in recent years, attracting some eye watering yields, so it’s great to secure an asset like this. We would definitely be up for some more, with both income deals and add value opportunities on our radar, the appetite remains for another busy year”
Altitude Asset Management look after this portfolio that now totals over £70m and includes a mixture of retail warehouse, industrial, hotel and and leisure stock. Altitude investments works with Altitude asset management on the acquisition, disposal and strategic asset management of a few select portfolios, maximising returns for their retained investors.