Orchard Street Investment Management has completed the acquisition of a prime industrial estate in Chessington, Greater London for £40.25 mln (€53 mln).
The asset was acquired from Aberdeen Standard Investments on behalf of St James’s Place UK Plc.
Located within Chessington’s established industrial estate on Cox Lane, the modern, purpose-built estate comprises of four units totalling 138,486 sq ft (12,865 m2) across a seven-acre site. The industrial estate is fully-let to three tenants with a weighted average unexpired lease term of 6.5 years to breaks and 8.4 years to expiries. With recent industrial lettings in the area achieving in excess of £15.00 psf, the asset’s low passing rent of £11.80 psf overall offers strong rental growth prospects, Orchard Street said.
Harry Buxton, acquisitions manager at Orchard Street, commented: 'The industrial occupational market in Chessington and its surrounds is characterised by an acute lack of supply, which continues to drive rental growth. With robust occupier demand and the continued loss of industrial land within the M25, this latest addition to our client’s portfolio presented a compelling opportunity to acquire a well-connected, prime industrial estate with strong reversionary potential and longer-term asset management opportunities.'
Orchard Street was advised on the acquisition by DTRE, whilst the Vendor, Aberdeen Standard Investments, was advised by JLL.