Portsmouth warehouse sells for £4.5m
An industrial unit in Portsmouth has sold for £4.5 million.
The 40,436 square foot building, named Silver Point, has sold to private equity real estate investor Paloma Capital with property consultancy Vail Williams’ Industrial Agency Team leader Russell Mogridge advising the seller along with law firm Blake Morgan.
The sale represents a net initial of 6.55 per cent allowing for purchaser costs and ground rent. The building is currently occupied by Contract Candles & Diffusers, which works with brands in the luxury and home fragrance sector.
Russell said: “This is one of the largest commercial property investment sales of its kind in the Portsmouth for some time and underlines how industrial & logistics property remains a safe haven for income-focused investors amid the UK’s heightened economic pressures.
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“Silver Point, constructed in 1995, is particularly appealing, being in a highly accessible location close to the M27 Solent Corridor and Portsmouth International Port, on a self-contained site and yard space. The railway station is adjacent, for commuter convenience.
“We have acted for Silver Point’s owner for the last 25 years and, at the start of 2022, let the warehouse on a new five-year lease at a rent of just over £360,000 per annum, equivalent to £8.90 a sq ft.
“This investment sale demonstrates that far-sighted investors are still buying.”
Jeremy Collin, Director and lead asset manager on Paloma’s Dove Property Fund, said: “We are particularly pleased with the purchase of Silver Point within the Dove Real Estate Fund, which adds to our existing Portsmouth holding at nearby Interchange Park. Paloma continues to see Portsmouth as an attractive industrial location in which to invest.”
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