Investment manager Orchard Street has acquired industrial site Merlin Park in Portsmouth, UK, for £19 mln (€21 mln), in a deal representing a net initial yield of 4.50%.
The acquisition was made on behalf of a pension fund client from British Airways Pension Fund.
The property comprises seven industrial units completed in 2018 totalling 88,000 sq ft (8,175 m2), located on Portsea Island within Portsmouth’s main industrial area. The property is fully let to four tenants and provides income from a diverse range of occupiers with a long weighted average unexpired lease term of 11.9 years to breaks (12.5 years to expiries) and a passing rent of £10.40 per sq ft overall.
Merlin Park is located close to Portsmouth city centre and the nearby motorway network, and operates as a last mile logistics estate. It holds a BREEAM ‘Very Good’ rating.
Orchard Street was advised on the acquisition by Lambert Smith Hampton, whilst British Airways Pension Fund was advised by DTRE.
