Orchard Street buys industrial property in Portsmouth for €19m

Orchard Street buys industrial real estate in Portsmouth for €19m

Commercial property investment manager Orchard Street Investment Management (Orchard Street) has acquired Merlin Park, an industrial property in Portsmouth for €19.0 million, representing a net initial yield of 4.50 per cent, on behalf of a pension fund client from British Airways Pension Fund.

The property comprises seven industrial units completed in 2018 totalling 88,000 sq ft, located on Portsea Island within Portsmouth’s main industrial area. The estate benefits from excellent connectivity to the city centre and nearby motorway network, operating as a genuine ‘last mile’ logistics estate.

The industrial property in Portsmouth is fully let to four tenants and provides robust income from a diverse range of occupiers with a long weighted average unexpired lease term of 11.9 years to breaks (12.5 years to expiries) and a passing rent of GBP10.40 per sq ft overall.

“We consider this best-in-class asset to be an excellent addition to our Client’s portfolio. The property provides resilient income from a diverse tenant mix, a long unexpired term significantly in excess of the market average, and strong sustainability credentials. This acquisition follows shortly after our purchase for another client of a multi-let industrial estate in an equally-undersupplied location, Hemel Hempstead, and reinforces our commitment to the positive fundamentals of the industrial sector,” said Harry Buxton, Acquisitions Manager at Orchard Street.