Rockspring Property Investment Managers has completed the acquisition of Transigo Industrial Park in Thatcham, Berkshire, from ING for GBP8.555m, reflecting a net initial yield of 6.8 per cent per annum.
The deal was on behalf of a separate client account
Transigo is a modern, high quality industrial park, completed in 2008, in a core Thames Valley location providing easy access to the M4 motorway as well as the A34 and A4. The property comprises 155,206 sq ft of gross lettable area across nine high specification warehouse buildings, providing units of between 6,953 sq ft and 38,647 sq ft. The space is let to six tenants, with an average unexpired lease term of 5.7 years.
Rockspring will now implement an asset management programme to lease up the vacant space and re-gear existing leases in order to maximise income and generate value. There are currently two vacant units of 40,000 sq ft each; Rockspring will split these to provide four units of 20,000 sq ft each, in response to current occupier demand in this market. The asset generates income of GBP611,949 pa and, once the remaining two units are let, will provide a reversionary yield of 11.5 per cent pa.
Mike Pryer, associate partner at Rockspring, says: “Transigo industrial park is a perfect fit with Rockspring’s acquisition strategy. It is a very high quality and well located property, providing attractive space in a supply-constrained location that also offers the potential for value growth. Our specialist asset management team will now implement a number of initiatives to increase rental income and maximise its value on behalf of the investor.”