Martin’s Properties is gearing up to “harness” its “firepower and availability of cash” with plans to spend £30m on assets across London and the South East.
The spending plans come as the group completes its first three acquisitions of the year: a 3.3-acre site on Abingdon Road in Didcot, Oxfordshire, the 3.4-acre Curtis Industrial Estate in Oxford, and a retail unit in Wantage, Oxfordshire. Collectively, the three sites cost £12m.
Martin’s said the Didcot site, which was bought from National Grid Property Holdings, offered “significant potential” for a variety of uses and that it had already received several offers for prelets.
The 3.4-acre Curtis Lane Industrial Estate, bought from a private investor, is currently leased off rents of around £5 per sq ft. The new owner sees potential for increased income as it is in an area of “very limited supply”.
The retail unit and service yard acquired in Wantage adjoins Martin’s Properties’ Waitrose store. The firm said the acquisition enhanced its holdings and had potential for a more comprehensive scheme in the long term.
Chief executive Richard Bourne said: “We have been patient with the deployment of our capital over the past 12 months – instead focussing on developing and managing our current £400m portfolio, which now has close to zero vacancy rate and rental income up from £16m to £18m.
“We are now looking to harness our firepower and availability of cash by deploying a further £30m into development and lending opportunities in strong locations across London and Southern England.”
He added: “We are actively looking for further opportunities and jv partners as we seek to meet our ambitious growth plans through investing in strategic investment and development sites as well as lending and sourcing, managing and developing assets for third parties.”
Gary Sherwin, head of transactions at Martin’s Properties, said the acquisitions in Oxfordshire reflected the firm’s focus on growth locations with low supply.
“Curtis Industrial Estate in Oxford is situated in an edge of city location with easy access to A34. We have identified multiple options for enhancing the asset in the short and medium term,” he said. “Didcot is a key location for our investment into affluent areas with good transport links and increasing housing. The site is close to the town centre and the train station, offering significant development potential for a variety of uses.”
Martin’s Properties’ total ownership of mixed-use development and investment assets in Oxfordshire now totals 12.75 acres with 176,420 sq ft and circa £42m of existing use value and a projected future development value in excess of £70m.
LSH acted for Martins Properties on the acquisition of Curtis Lane; CBRE advised the vendor.
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