A unit at Hilsea Industrial Estate in Portsmouth has been sold to a private equity real estate investor for £4.5m.
The 40,436 sq ft Silver Point building was bought by Paloma Capital in a deal representing a net initial yield of 6.55%, allowing for purchaser costs and ground rent.
Property consultancy Vail Williams advised in the sale of the long leasehold interest with Russell Mogridge, who leads the company's Industrial Agency Team in the UK and works out of its Portsmouth office, acting on behalf of Silver Point’s owner, a private investor.
He said: “This is one of the largest commercial property investment sales of its kind in Portsmouth for some time and underlines how industrial and 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."
He added: “We have acted for Silver Point’s owner for the past 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.”
Locally-based law firm Blake Morgan acted on behalf of the seller.
Silver Point’s occupier is Contract Candles & Diffusers, which works with leading brands in the luxury and home fragrance sector.
READ MORE: Revenues rise at Vail Williams
Image: The Silver Point building at Hilsea Industrial Estate. Credit: Vail Williams
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