Orchard Street Investment Management (‘Orchard Street’), the specialist commercial property investment manager, has completed the acquisition of a portfolio of six distinct industrial estates in the UK’s South East region for £113.8 million, reflecting a topped-up initial yield of 6.1%. Orchard Street acquired the assets on behalf of St James’s Place from SEGRO plc (‘SEGRO’).
The ‘Orbital Portfolio’ comprises six freehold multi-let industrial estates located in prime South East industrial markets around the M25 and M3 motorway corridors. Spread across 97 individual units, the portfolio has a combined floor space of over 1 million sq ft, and is currently 91% let to 71 tenants.
The portfolio comprises the following industrial estates:
- J4 Park, Camberley: a 108,124 sq ft estate 35 miles south west of central London;
- Albany Park, Frimley: a 12.6 acre site less than 2 miles off the M3;
- Viridian Park, Heathrow: a modern, high-spec estate within a 12 minutes’ reach of Heathrow airport;
- J31 Park, West Thurrock: a substantial 16.2 acre site with access to the M25 within 5 minutes;
- Anderson Road, Woodford Green: an established Greater London estate of 64,574 sq ft, and;
- Maylands Wood, Hemel Hempstead: a 13.6 acre site within a M1 corridor town.
Barney Rowe, Partner at Orchard Street, commented:
“This portfolio acquisition presents a rare opportunity for Orchard Street to gain a substantial foothold in the highly sought after South East industrial market. The strong level of tenant demand for these properties offers exciting prospects for future income growth throughout the portfolio.”
Orchard Street was advised by Knight Frank while SEGRO was advised by DTRE.