Orchard Street buys Portsmouth estate for £19 million

Orchard Street Investment Management has completed the purchase of Merlin Park in Portsmouth for £19 million.

The acquisition represents a net initial yield of 4.5%, and the purchase was made from the British Airways Pension Fund, on behalf of one of Orchard Street’s pension fund clients.

The property consists of seven industrial units located in Portsea Island, which were completed in 2018, and total 88,000 sq ft.

Harry Buxton, acquisitions manager at Orchard Street, said: “The property provides resilient income from a diverse tenant mix, a long unexpired term significantly in excess of the market average, and strong sustainability credentials.

“This acquisition follows shortly after our purchase for another client of a multi-let industrial estate in an equally-undersupplied location, Hemel Hempstead, and reinforces our commitment to the positive fundamentals of the industrial sector.”

Orchard Street was advised on the acquisition by Lambert Smith Hampton, whilst British Airways Pension Fund was advised by DTRE.