Industrial property a safe haven for investors

With turmoil in the property markets, property investors are turning to industrial  and logistics property to provide safe secure income further supporting  the strength of the logistics market as a stalwart fore he economy.

Specialist commercial property investment manager Orchard Street Investment Management paid £14.9 million for St James’s Place Property Unit Trust’ 63,000 sq ft multi-let Centro Industrial Estate in Hemel Hempstead, Hertfordshire.

The freehold self-contained estate is fully-let to four high-quality tenants including DHL, Virgin Media, NTT, and the Ambulance Service.

Harry Buxton, Acquisitions Manager at Orchard Street, said: “In a volatile environment, the property provides secure income from a robust tenant line-up and, with occupational demand remaining buoyant in Hemel Hempstead and the wider South East market, the rental growth prospects for this property are positive. Given the scarcity of good quality, well-let opportunities at present, this acquisition represents an excellent addition to our Client’s portfolio and demonstrates our strong appetite for the industrial sector.”

The property has a WAULT of 9.5 years to expiry and reflects a low passing rent of £10 per sq ft overall, offering strong prospects for rental growth compared to prime rents in the area in excess of £13 per sq ft.

Orchard Street was advised on the acquisition by Gerald Eve, while the vendor was advised by DTRE.