SWIP’s GBP2.5bn flagship Property Trust (SWIPPT) has purchased Axis Park in Peterborough, Cambridgeshire, from Rockspring Property Investment Managers’ TransEuropean Property IV.
The asset was sold for GBP13.18m, reflecting a net initial yield of 8.0 per cent p.a.
Located in Orton, Southgate, an established industrial area, the property comprises approximately 300,000 sq ft of industrial space in 45 units arranged across eight terraces.
Rockspring acquired Axis Park five years ago for GBP8.55m, and subsequently added value through various successful asset management initiatives, including letting up vacant space at the estate and re-gearing the leases on six units (representing 28 per cent of the estate’s income), which are leased to the First Secretary of State until 2021. The sale has crystallised a return on the investment of 22 per cent p.a.
Phil Sturdy, Rockspring European director, says: “Axis Park is a prime example of the type of investment targeted by the TransEuropean series of funds. It has good fundamentals, in a strong location, and had been under-managed by the previous owner, giving our specialist team the opportunity to create value through the application of a number of asset management initiatives. The successful and timely disposal of the property demonstrates our ability to execute our investment strategy, and has allowed us to generate a strong return for our investors.”
Ewan Cameron, investment manager, SWIP Property Trust, says: “Axis Park, Peterborough, presents an exciting opportunity for the SWIP Property Trust occupying a strategic position in the heart of Peterborough's principal industrial and business area, Orton Southgate. With a high number of units combined with a low overall site cover, this acquisition offers the prospect of an attractive running income return through active asset management where we believe there is scope to increase the average weighted unexpired lease term and reposition the estate."
Rockspring TransEuropean IV, the fourth fund in the TransEuropean series, is now fully invested and consists of a diversified portfolio of property investments throughout Europe.
Deloitte Real Estate acted for Rockspring, while Gerald Eve acted for SWIP Property Trust.