Orchard Street Investment Management has purchased the Commerce Trade Park in Croydon from Canmoor for GBP5.225 million, reflecting a net initial yield of 6.15%.
The acquisition was made on behalf of the St James’s Place Property Unit Trust.
Located on the Purley Way retail warehouse belt in Croydon, Commerce Trade Park comprises eight units totalling 32,699 sq ft. The park is fully let to seven tenants at an average rent of GBP10.35 per sq ft on leases with an average weighted unexpired lease term of 9.1 years (4.2 years to first break). Tenants include Chubb Fire & Security, YESSS Electrical, Sparesbase and HSS Hire Services.
Philip Gadsden, Partner at Orchard Street, says: “The acquisition of Commerce Trade Park provides plenty of opportunity to improve value. We will be looking to take advantage of the Park’s excellent location near Ikea on Purley Way in Croydon and the newly developed space to grow rental income from a low base through lease regears and targeted asset management initiatives.”