Orchard Street Investment Management has sold the Riverside Cargo Centre in Poyle, Slough, to Lothian Pension Fund for £14.3m, reflecting a net initial yield of 5.5%.
The 2.3-acre site comprises three warehouses totalling 43,044 sq ft.
The scheme is fully let to tenants including Amworld UK, Revisecatch and Kone with an unexpired lease term of seven-and-a-half years. It generates an annual passing rent of £836,665, reflecting a low rent of £19 per sq ft.
The facilities sit in a prime location within the established Heathrow and west London industrial market and offer access to junction 14 of the M25, junction five of the M4 and junction two of the M3.
Nicola Barrett, from Lothian Pension Fund, said: “Given the property’s attractive ESG credentials, along with the opportunity to further enhance these attributes over time, this investment will provide attractive longer-term returns for Lothian Pension Fund.”
Charlie Foster, director for UK investment at Savills which advised the buyer, added: “Given the supply demand imbalance in the wider market, we are likely to continue to see rental growth which should help to generate strong returns.”
Orchard Street IM was advised by DTRE.
Image © Savills
Send feedback to Evelina Grecenko
Follow Estates Gazette
