Investor acquires £17m industrial estate
Property investors Paloma Capital have acquired a 463,000 sq ft Sheffield industrial estate.
It set the company back £16.75m, but it plans to invest a further £1m in the refurbishment of Tinsley Industrial Estate in the Lower don Valley.
London-based Paloma Capital, on behalf of its maiden fund Paloma Real Estate Fund I, has recently secured a 40,000 sq ft letting to national karting centre Go Karting for Fun and a 12,000 sq ft letting to Eadie Industries Limited on the estate.
Existing tenants include plastics manufacturer Mocap, formerly William Beckett Plastics, Denton Motors, Ford Windows and Multi Media.
Jeremy Collin, director at Paloma Capital, said: “We are pleased with the acquisition of Tinsley Industrial Estate and look forward to continuing with the investment to build on the success of what the previous landlords had started.
“We intend to invest more than £1m in upgrades and refurbishments over the next 12 months to continue to attract high quality occupiers to the estate.
“We can add value through the refurbishment of units back to a high standard of accommodation that satisfies modern requirements. This asset fits perfectly with our focus on multi-let warehousing estates in strong urban locations.”
The Sheffield office of Knight Frank represents the landlord and is marketing the vacant 32,000 sq ft and 8,000 sq ft units.
Rebecca Schofield, partner at Knight Frank said: “Tinsley Industrial Estate has undergone a major transformation and the new owners Paloma will continue to refresh the offer.
“The location, benefiting from easy access to the M1 motorway, plus the quality environment and scale of the refurbishment has attracted new occupiers and encouraged existing tenants to stay longer. We expect interest to be high in the last two units because of the planned further refurbishment work and the ideal location close to the M1.”
Jonathan Hodgson of Howlings Hodgson has acted as the landlord’s asset manager since January 2015, and added: “The existing occupiers and Sheffield market generally has responded well to the investment in this estate.
“In total, 14 transactions have completed in the last 18 months, so there has been a constant stream of positive activity. Many of the existing occupiers agreed to extended terms and others have expanded into larger space; we’ve completed deals on circa 200,000 sq.ft of space.
“New occupiers have been attracted to the estate and more are expected to follow once the next phase of refurbishments has completed…so we are expecting more positive news in 2017.”
Paloma Capital has now acquired nine industrial estates, eight retail parks and an office building since its launch in December 2015.
