BP Pension Fund’s Ropemaker Properties has bought four warehouse units in Witney, Oxfordshire, for £26m from Tungsten Properties.
The off-market deal comprises four units measuring 195,000 sq ft. These form part of the first phase of a seven-warehouse and industrial building project.
Practical completion was reached in July, with 80% now sold or let.
The tenant line-up includes static control equipment manufacturer Meech International, which took 22,000 sq ft, and swimming pool equipment distributor Certikin International, which occupies 125,000 sq ft. Unit 1, which totals 20,000 sq ft, is still vacant.
For the remainder of the first phase, unit 7 was sold to Rofgo Venture earlier in the year, while units 5b and 5c are due to complete imminently. There are five additional units available, totalling 11,000 sq ft.
The second phase is subject to a planning application, already submitted to West Oxfordshire District Council. This seeks to provide 169,000 sq ft of new employment space across four buildings.
Subject to approval, this will bring the whole project to a total 490,000 sq ft.
Jeff Penman, managing director of Tungsten Properties, said: “This is our first significant development using the Tungsten balance sheet, coupled with our £50m revolving credit facility from Fortwell Capital. This relationship has allowed us to achieve full value from the exit sale.”
David Mole, development director of Tungsten Properties, said: “The sale to Ropemaker Properties reflects the current high demand from investors for well-located, built and let buildings.
“We have strong interest for the remaining units from fast-growing companies needing manufacturing and warehousing space in Oxfordshire.”
Andrew Franck-Steier, director at Franck-Steier Price, which advised Tungsten Properties on the deal, said: “There continues to be substantial demand for the right high-quality product in the right location.”
Griffiths Eccles acted for Ropemaker Properties. Carter Jonas and VSL acted on behalf of Tungsten Properties for the lettings.
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