Orchard Street Investment Management has purchased the Commerce trade park in Croydon from Canmoor for £5.2m.
The acquisition, made on behalf of the St James’s Place Property Unit Trust, reflects a net initial yield of 6.2%.
The park, located on the Purley Way retail warehouse belt, comprises eight units totalling 32,700 sq ft.
The park is fully let to seven tenants at an average rent of £10.35 per sq ft on leases with an average weighted unexpired lease term of 9.1 years.
Tenants include Chubb Fire & Security, YESSS Electrical, Sparesbase and HSS Hire Services.
Philip Gadsden, partner at Orchard Street, said: “The acquisition of Commerce trade park provides plenty of opportunity to improve value.
“We will be looking to take advantage of the park’s excellent location near Ikea on Purley Way in Croydon and the newly developed space to grow rental income from a low base through lease regears and targeted asset management initiatives.”
annabel.dixon@estatesgazette.com
