A reversionary low density industrial investment. - • Situated on Bamfurlong Industrial Park, strategically located between Cheltenham and Gloucester.
• Modern warehouse unit totaling 8,114 sq ft with an additional rear extension comprising 1,986 sq ft (not rentalised).
• Large self contained yard on a site of 0.67 acres providing a low site cover of 28%.
• Unit recently fully refurbished to include a new roof and cladding.
• The property will be sold with a new 250 year lease at a peppercorn rent.
• Let to Avonmouth Engineering Services Ltd (Fame rated 74/100), with a guarantor from Hidrostal (GB) Ltd (Fame rated 89/100).
• Let on a 10 year lease expiring 24th October 2031, with an unexpired term of 8.46 years.
• Rent of £100,000 per annum, reflecting £10.25 per sq ft on the unit and £1.50 per sq ft on the additional yard.
• Upward only rent review on 25th October 2026.
• ERV at review of £114,100 per annum, reflecting £12.00 per sq ft on the unit and
£1.50 per sq ft on the additional yard.
• ERV at lease expiry of £131,300 per annum, reflecting £12.00 per sq ft on the unit and
rear extension and £1.50 per sq ft on the additional yard.
• Rents on Bamfurlong Industrial Park are in excess of £12.00 per sq ft for refurbished accommodation, with one unit currently under offer at £13.69 per sq ft.
• Capital value of £158 per sq ft is at a discount to the recent VP sale on the estate at £215 per sq ft.
• We are instructed to seek offers in excess of £1,600,000, reflecting a net initial yield of 5.84% and a reversionary yield of 7.67%, assuming purchaser’s costs of 7.14%.
