St Modwen and Kuwaiti investor Salhia Real Estate Company have sold Eastleigh Works, a rail-related industrial site in Southampton, to Savills Investment Management for £20.6m.
The price paid for the multi-let train maintenance facility reflects a net initial yield of 8%.
The 47.4-acre site is primarily used as a locomotive, carriage and wagon repair works and is predominantly let to Arlington Fleet Services. It comprises 506,317 sq ft of warehouse space, a three-storey office building and open storage areas.
Nick Kay, development director at St. Modwen said: “Since acquiring the site in 2002, we have added significant value over the years, taking it from a vacant complex of redundant buildings to a fully occupied, well-managed rail-orientated industrial estate.
“We will reinvest the sale proceeds to help deliver our commercial development pipeline as we rebalance our portfolio towards a high quality industrial/logistics sector.”
Savills advised Savills IM. CBRE advised the sellers.
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