Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, announces that it has completed the acquisition of The Griffin Centre, a strategically-located industrial estate in Feltham, West London, from LaSalle Investment Management. The asset was acquired on behalf of St James’s Place UK Plc. for £20.91 million, representing a net initial yield of 4.13%.
Located in North Feltham’s established industrial area, 13 miles west of Central London and within 1.5 miles of Heathrow Airport, the multi-let estate is comprised of eight industrial units and two office buildings totalling 104,718 sq ft across a 5.6 acre site. The industrial element is fully-let to a diverse tenant mix with a WAULT of 4 years and reflects a low passing rent of £9.24 per sq ft, offering excellent prospects for rental growth. This, combined with numerous asset management initiatives, presents attractive opportunities to enhance the income.
The Griffin Centre is situated in a strategic West London location with Heathrow Airport’s perimeter road and cargo centre less than 1.5 miles north east of the property, and excellent access to the M4 and the M25 motorways 4 miles away. The estate is well-served by public transport, with Feltham railway station less than a mile from The Griffin Centre and Hatton Cross Underground station within 1.5 miles of the estate.
Harry Buxton, Acquisitions Manager at Orchard Street, commented: “Investor appetite for multi-let industrial estates in Greater London remains strong, underpinned by strong rental growth prospects as a result of continuing demand and an acute lack of supply. The Griffin Centre offers numerous opportunities to reposition the estate and capture this growth and, coupled with its close proximity to Heathrow Airport and the motorway network, the asset presents a compelling investment rationale.”
Orchard Street was advised on the acquisition by Gerald Eve, whilst LaSalle Investment Management was advised by GVA.
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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.