Fund bags brace of Stockport shed deals
On behalf of the Property Income Trust for Charities, Mayfair Capital has completed two lettings at Orion Business Park in Cheadle, deals totalling 69,000 sq ft.
The deals follow a refurbishment programme on Mayfair’s properties. The site comprises four “mid-box” warehouse units of 29,000 sq ft to 49,000 sq ft, sitting within Orion Business Park in the established Bird Hall Lane commercial area.
Mayfair acquired the units for PITCH in December 2020.
Mayfair said that it has seen strong demand for good quality modern units under 50,000 sq ft across South Manchester, demand it expects to underpin rental growth over the next few years.
The revamp programme at the site has included the installation of rooftop solar panels, with the energy being provided to the occupier through a power purchase agreement. Following the full refurbishment of unit B, the EPC rating improved from C to A.
Following completion of the refurbishment, Unit A has been leased to PL Distribution, which has taken the 39,000 sq ft space on a 10-year lease at £7.50 per sq ft.
Hamilton Pharmaceuticals has taken the fully refurbished Unit B, which comprises 30,000 sq ft, at £8.25 per sq ft, also having agreed terms for 10 years. The agreed Unit B rent is 24% ahead of the pre-refurbishment figure.
Scott Fawcett, director of asset management at Mayfair Capital, said: “We were attracted to the units given their modern specification and strong location, as well as the potential to enhance the income through active management.
“We are pleased to have completed our refurbishment programme, unlocking untapped value in both assets. This project is a good example of the asset management strategy undertaken by PITCH and demonstrates how investors can enhance portfolios even amid challenging market conditions.”
Simon Martindale, fund director of PITCH, added: “The warehouse sector is currently undergoing price reductions in the face of a higher interest rate environment; however, the strength of occupier demand remains undiminished, especially for well-located and specified units with strong sustainability credentials.
“This successful and re-letting initiative is testament to the quality of asset in the portfolio and the continued importance and relevance of a thematic investment strategy.”