Business park sells for £11m
A business park in Beverley has been sold for £11.1m.
Regional REIT, the regional real estate investment specialists, said that London and Scottish Property Investment Management (LSPIM) has contracted to sell Tokenspire Business Park.
The sale reflects a net initial yield of 7.0%. The sale price of £11.1m represents an uplift of 30.6% to the acquisition price.
The industrial estate which extends to over 24 acres and consists of 322,211 sq. ft. of commercial space was purchased in March 2016 for £8.5m.
Key tenants include QDOS Entertainment, Sargent Electrical Services and TAPCO Europe.
LSPIM said it has completed its business plan by undertaking “much needed” improvements to the estate’s infrastructure, resulting in attracting new tenants reducing void periods, assisting in retaining existing tenants, increasing income and improving the value of the property substantially.
“All this was achieved well within the five-year business plan period,” it said.
Stephen Inglis, chief executive of London & Scottish Property Investment Management, said: “This is a further example of achieving excellent results by utilising our unique management platform to undertake a pre-agreed business plan.
“This has not only achieved increased rental income but also improved the capital value of the asset. We have maximised shareholder returns by selling an asset we have completed the business plan on into a competitive attractive market for multi-let industrial properties.
“We have a very substantial pipeline of acquisition opportunities and we will be recycling the proceeds of this sale into assets offering asset management initiatives, rental growth potential and thus higher future returns.”
