Various - UK

VARIOUS - UK

Description

A long-term investment into a geographically diverse multi-let industrial portfolio with the highest concentration of units situated in the West Midlands at 22% by income. The portfolio consists of 24 estates, 316 tenancies and a total floor area of approximately 2m sq ft producing a yield of about 9%. The vacancy rate at approximately 29% provides significant opportunities to increase occupancy levels and the passing rent. The income is secured to a diverse spread of tenants including Wolseley, Goodyear Dunlop Tyres Ltd and Vodafone for example.

Opportunity

To reduce rental voids, void costs and increase yield and capital values through planning gain, building design improvements, active tenant management and deployment of appropriate capital expenditure in an improving market.

Value Added

  • L&O and South Street Capital identified the investment opportunity and negotiated the successful purchase having undertaken detailed due diligence on behalf of the Hong Kong family purchasers.
  • In a joint venture between L&O and South Street Capital the partnership has formulated an intensive and focused asset management strategy for the 24 industrial estates and will employ capital expenditure where necessary to enhance rental & capital values.
  • Intimate knowledge of the industrial sector and the dynamics of the marketplace will provide a stable backdrop for enhancement of the value of the portfolio moving forward.
  • L&O and South Street Capital are well connected and are building teams of professionals to cover day-to-day management, building surveying, dilapidations, letting, planning and rent reviews.