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
.), even though the 12,542 sq.metres (135,000sq.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 2018www.compropregister.com
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
.) 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
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
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.
& Smith has sold its 1,229 sq.metres (13,224sq.ft
.) Unit 7 in
Portsmouth through Vail Williams to La Espanola, a food wholesaler.