Suon has assembled one of the largest sites in the West Midlands with its acquisition of the 16.26ha (40.2 acre) Griff Clara Industrial Estate, near Nuneaton.
The purchase of the aging industrial estate brings Suon’s combined estate – including its interest in Bermuda Park – to 89ha (220 acres). The developer paid £2m reflecting a 20% yield for the 100-year leasehold interest in the estate.
Griff Clara generates £390,000 pa form eight tenants in 14,957 sq m (161,000 sq ft) of industrial space. According to Rumsey & Co’s Nic Rumsey, who acted for Suon: “We bought it partly for the covenant strength where the three principle occupiers – Pioneer Concrete, Total Oil and Motor Panels – are underpinning three quarters of the rent.”
But more importantly Rumsey says it offers potential for a long-term third phase at the 59ha (146 acre) Bermuda Park. Suon currently has a 75% interest in Bermuda through its subsidiary Tawnywood.
A couple of months ago Suon bought 13.3ha (33 acres) on the northern boundary of Bermuda from NSM for £2m. This has planning consent for residential, but according to Rumsey the planners have confirmed in principle they will give change of use to industrial.
The two acquisitions, combined with Suon’s holdings in Bermuda Park, bring the combined estate to 92,900 sq m (1m sq ft) of space. Rumsey is confident it has potential for another 241,540 sq m (2.6m sq ft) in three phases.
Shortland Horne advised the vendor AAH on the sale of Griff Clara. Suon was represented by Rumsey & Co who has been retailend as managing agents and development advisors.
EGi News 30/08/96
