Drake Commercial has successfully negotiated the sale of a freehold industrial/warehouse investment in Northampton.
One South Portway Close sits on the town’s Round Spinney estate. Built in the late ‘80’s the property comprises a detached building totalling 40,203 sq ft on a site of 1.64 acres.
A previous occupier had substantially adapted the property to provide an extended warehouse and a unique loading facility with dock level access in an enclosed loading bay constructed to full height.
Drake Commercial acted on behalf of Seabourne Group Ltd which bought the property in 2010. A Group company will continue in occupation under the terms of a recently granted 10 year lease at a commencing rental of £160,000 per annum exclusive.
The package was marketed seeking offers in excess of £1,950,000 and after good interest this objective was achieved and a deal was agreed with a private investor.
David Smith the partner who undertook the sale believes that the deal clearly demonstrates that the market for freehold investments, especially in the industrial /warehouse sector remains very strong.
“The commercial property sector as a whole but the industrial/warehouse sector in particular is characterised by a shortage of available properties and a lack of opportunity to generate more stock. This is in no small part because the costs of procuring new buildings in this sector are prohibitive in the face of prevailing values.
“As a result investors are attracted to existing buildings which are available at prices less than the cost of reinstatement. Add to that the basic fact that the sector still offers returns to investors which are superior to many other asset classes both in the property market and beyond.”
Drake Commercial believes the market offers scope for continued strong performance in 2016 and as long as the fundamentals which underpin demand remain as they are at present.