Portsmouth warehouse sells for £4.5m

Published by

Sam Pither

Silver Point in Portsmouth has been sold to Paloma Capital for £4.5 million. Image provided by Deep South Media.

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.

“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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Sam Pither

Sam is the Regional Editor of Biz News, responsible for both Hampshire and Dorset. A new recruit to journalism, Sam started writing for the Business Magazine as a freelancer in May of 2022 after completing his degree in English at University College London. His passion for local businesses and ability to tell a story soon caught the attention of the publication’s management team and have led to his meteoric rise. Sam, who lives in central Reading, takes a particular interest in technology, gaming and food and drink, having been a chef before starting his degree.