The freehold commercial property market is proving extremely hot. Currently there is a shortage of available stock, with investor demand remaining extremely high, despite the uncertainty resulting from the COVID-19 pandemic. This remains the case across all sectors.
Hadlands are pleased to have successfully disposed of a multi-let industrial investment in Northampton. The properties, located on Stour Road on the Weedon Road Industrial Estate, offered a total gross internal area of 31,700 square feet on a plot of just under two acres, generating a net income of £113,500 per annum. The investment offers a range of asset management opportunities and the potential for redevelopment (subject to planning).
Investor appetite remains strong, especially for industrial stock, fuelled by increasing rents and a shortage of supply. Many investors are actively looking for an ‘angle’ to increase rents, re-gear leases or to re-develop to maximise their returns.
The final sale of individual industrial units, originally purchased within a portfolio Hadlands sold 18 months ago, has now completed.
Our client acquired two blocks of four industrial units in Upper Priory Street and Bunting Road, Northampton, plus an additional unit within the Bunting Road scheme. The client saw an increase in capital value of around 50% through a process of active asset management, new lettings, open market sales and tenant buy-ins, with the individual units being sold off piecemeal to private investors looking for SIPP style investments.
77 Bunting Road which measures 907 square feet, was acquired by our client with vacant possession and we concluded a letting at £12,000 per annum exclusive, equating to a rental price of £13.23 per square foot with no tenant incentives provided. Units in the same scheme were let for around £7 per square foot less than two years ago. The unit was subsequently sold for £145,000 exclusive – an increase of around 50% in capital value within a year. This highlights the ever-increasing occupier and investor demand for industrial units within Northamptonshire
Hadlands also recently acquired, on behalf of private clients, a mixed-use investment at 14 Fish Street and 1-7 Dychurch Lane in Northampton town centre, comprising three retail/leisure units with 22 student flats above, with a total rental income of £231,223 per annum.
Industrial occupier demand is also remaining strong. Hadlands have recently let 35 Cornwell Business Park on the Brackmills Industrial Estate in Northampton. The unit, measuring 5,465 square feet, has now been let to a high-tech electronics business involved in the motor industry. The unit is to be used for manufacturing, testing and associated office space.
Unit 41 Cornwell Business Park, which is currently undergoing refurbishment, is soon to be available and we are now calling for interest. The unit measures 5,439 square feet with an enclosable side yard, with an asking rent of £45,000 per annum exclusive. Scan the QR Code for more details.
For more information, contact Hadland Chartered Surveyors on 01604 639657 or visit www.hadlands.co.uk
