O Twelve sells industrial estate at 37% above valuation

O Twelve Estates has announced the sale of an industrial estate in Swanley, Kent to an institutional investor for £24.4 mln (EUR 27 mln), reflecting a 6.8% yield.

The sale price achieved is 37% above the asset's most recent valuation of £17.8 mln at end-September 2009. From the end of September 2009 to the end of February 2010, the IPD Monthly index for industrial property reported a capital value movement of 7%.

O Twelve acquired the 24,500-m2, nine unit industrial estate in April 2007. The estate, which is prominently located at the junction of the M25 and M20 motorways, had a number of vacant units when purchased.

Since acquisition O Twelve comprehensively refurbished the industrial estate, concluded a number of lettings to strong covenants including Dreams, Toyota and Sainsbury's. The estate was rebranded as 'The Interchange, Swanley'.

London-listed O Twelve was formed to establish a substantial property investment portfolio in the Thames Gateway and the adjacent areas in the run-up to the 2012 Olympics.

Rugby Asset Management (RAM, a subsidiary of Rugby Estates, is property adviser to O Twelve.