Hansteen has sold its property in Hawtin Park in South Wales. The 106,844 sq ft property was bought by an overseas investor for £5.15m – a 7% yield.
The property has been used by British Airways since 1995, as its advanced cabin interior and safety facility, providing services which include the maintenance of slides, life vests and survival packs as well as seating, cabin interior components and carpet manufacture.
The property, which was originally circa 50,000 sq ft, was purchased by Ashtenne in 1999. In 2005 BA committed to further investment in the site, working in partnership with Ashtenne to construct an additional 55,000 sq ft.
In August 2016 Hansteen successfully renewed the lease with British Airways plc on a 10 year term, achieving a headline rent of £430,000pa.
Chris Watkins, asset manager at Hansteen, said: “We have worked with and supported British Airways over the last 15 years, to expand its range of services at the facility, culminating in the construction of the 55,000 sq ft extension in 2005.
“Having successfully agreed renewal terms with BA last year, we have taken the opportunity to dispose of the property at the peak of its asset management cycle, taking advantage of current market conditions, particularly the demand for industrial property.”
James Nicholas of Alder King’s Cardiff office, which advised the vendor, added: “The falling pound has made the UK real estate market increasingly attractive to overseas investors. We’re delighted to have helped deliver this strategically important disposal for Hansteen.”
James Mason of Knight Frank, which advised the purchaser, said: “This is an example of the increased appetite from international capital for well let regional investments, and our client looks forward to a strong and continued relationship with the tenant, British Airways.”
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