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Institutions

BUY

An essential part of the industrial property market is that the major

institutions are buying, as we see with Standard Life Investments paying

£20.2 million through LSH for the Fareham Trade and Business Park.

The potential for Standard Life is considerable because rents on the park

are below the latest rates in the region with the highest at £86 a sq.metre

(£8 a

sq.ft

.), even though the 12,542 sq.metres (135,000

sq.ft.

) park has been

refurbished by Oceanic Estates.

The park has a blue chip line up of occupiers such as KFC, Formula One

Autocentres and Encon.

Another trade centre development is occurring at the former Truvox

building at Third Avenue, Millbrook (on the main western approach to

Southampton) by developer Maytree.

Here, there will be six units in a popular trade counter area of the city.

Chesters Commercial and LSH are joint agents and over 50% of the space is

under offer ahead of completion in June.

Commercial Property Register

April – September 2018

www.compropregister.com

16

Space

GALORE IN PORTS

Without doubt the largest

potential for new development

lies with Associated British Ports

(ABP) and its 2,372 acres in

21 UK sites.

The potential for the £3.5 billion

landbank, of which Southampton is

an important part, could support as

much as 2.8 million sq.metres

(30 million

sq.ft

.) of new space

with an emphasis on logistics and

port related manufacturing facilities.

As part of the exercise, ABP is

also assessing how much land it

could sell for uses such as

residential development.

As it is owned by pension fund

investors, CPPIB, Hermes, Borealis

and GIC it can take the long view

on its assets and hold onto its

portfolio for income growth.

To further the development

aims, ABP has a new team with a

31 member group of property

professionals boasting a wide range

of experience and skills. The port

company is currently in the throes

of a £1 billion investment to

improve facilities in its ports.

Director Jens Nielsen said: “We

have a really significant landbank

and now have an experienced team

to ensure investors, occupiers and

agents can fully capitalise on the

opportunities this space offers”.

To this view, Huw Turner, Head

of Property, added that “Whether

our customers’ businesses are

port related or not, the size of

our estates will enable clients to

grow and expand while remaining

in the same location. We provide

a full one stop service from the

start to the completion of a project

and beyond as we create a

development partnership with

our clients”.

Southampton, like some of the

other ABP ports, has good road and

rail communications and is of

course a premier container port.

Some of the sites in the ports

already have outline planning

permission as well as infrastructure

in place. Given the dynamic of the

economy on the South Coast, this

new initiative is likely to be

attractive in an area where

residential development has taken

so much of the employment land.

IN BRIEF

Rainford

& Smith has sold its 1,229 sq.metres (13,224

sq.ft

.) Unit 7 in

Portsmouth through Vail Williams to La Espanola, a food wholesaler.

NEWS