Orchard Street acquires prime Thames Valley industrial estate for £15.7 million

14 January 2019

Orchard Street acquires prime Thames Valley industrial estate for £15.7 million  

Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of Trade City Reading, a multi-let industrial estate in Reading, developed in Joint Venture by Kier Property and Investec. The asset was acquired on behalf of St. James’s Place UK Plc. for £15.68 million, reflecting a net initial yield of 4.70%.

Trade City Reading comprises a newly-developed industrial estate of 12 modern trade units totalling 54,755 sq ft across a 2.5 acre site. The estate is let to four tenants including Grand Taps, IN ‘n’ OUT Centres, ADI Global and GP Strategies Automotive with a further two units under offer. The rental tone reflects £14.00 - £15.00 psf with a WAULT on let units of 13.5 years term certain.

The estate sits within Reading Gateway, a newly-developed Kier Property and Investec scheme comprising industrial, retail, leisure and residential in a prime location 2.5 miles south of Reading town centre and immediately north of Junction 11 of the M4 motorway. The town has established itself as one of the leading commercial, retail and educational centres in the South East and is the economic capital of the Thames Valley, providing an abundance of amenities. Reading is set to benefit from the arrival of Crossrail (The Elizabeth Line) this year, whilst Reading’s railway station and local infrastructure is currently benefiting from £900m of investment from Network Rail. 

Harry Buxton, Acquisitions Manager at Orchard Street, commented: “This prime industrial asset benefits from an excellent location within the South East’s industrial hub, with the newly-developed Reading Gateway scheme providing increased critical mass and local infrastructure improvements enhancing the estate’s connectivity. With over 50% of the estate let or under offer and limited supply in the area, we are confident that the remaining units will let up well.

Leigh Thomas, Executive Director of Kier Property, added: “We are delighted to have completed the sale of Trade City Reading. This 12-unit industrial estate is a prime example of our Trade City brand and the wider Reading Gateway is a fantastic example of Kier Property’s ability to deliver mixed-use development. Both Kier Property, and our funding partner Investec, look forward to completing Reading Gateway in the coming weeks.”

Orchard Street was advised on the acquisition by DTRE, whilst Kier Property was advised by Lambert Smith Hampton.

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For more information:

Orchard Street:

John Humberstone

Orchard Street Investment Management

020 7494 8860

jhumberstone [at] orchard-street.co.uk ()

Dido Laurimore /Ellie Sweeney

FTI Consulting

020 3727 1000

osim [at] fticonsulting.com ()

 

Notes to Editors:

 

Orchard Street Investment Management

Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager focused on the UK market, with assets under management in excess of £4 billion. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, hotels, retail warehouses and offices.

END

For more information:

John Humberstone
Orchard Street Investment Management
+44 (0)20 7494 8860
jhumberstone [at] orchard-street.co.uk

Dido Laurimore/Ellie Sweeney
FTI Consulting
+44 (0)20 3727 1000
osim [at] fticonsulting.com

Notes to Editors:

Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.