Orchard Street Investment Management has completed the acquisition of the Merlin Park in Portsmouth for £19m.
The purchase from British Airways Pension Fund was made on behalf of an undisclosed pension client and the price reflects a net initial yield of 4.5%.
Merlin Park comprises seven industrial units spread over 88,000 sq ft. It is located on Portsea Island, in Portsmouth’s main industrial area.
It is let to four tenants with a passing rent of £10.40 per sq ft and a weighted average unexpired lease of 11.9 years to breaks and 12.5 years to expiry.
Harry Buxton, acquisitions manager at Orchard Street, said: “The property provides resilient income from a diverse tenant mix, a long unexpired term significantly in excess of the market average, and strong sustainability credentials.”
Orchard Street was advised by Lambert Smith Hampton; British Airways Pension Fund was advised by DTRE.
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
