Bridgwater - Sold January 2019
A modern warehouse purchased in April 2015 extending to c. 36,000 sq.ft. constructed in the early 80’s and let to Trelleborg Sealing Solutions UK Limited. Trelleborg manufactures nylon seals for use in the aviation, marine, oil and Formula One industries. The company has been in existence for over 50 years and delivers over 40,000 sealing products to customers worldwide. It is part of the Trelleborg AB company, which is headquartered in Sweden.
Current yield with the improved rent was 10.85% but long term the tenant was clearly intent on relocating due to its ongoing expansion. Although on lease expiry this offered an exciting opportunity for refurbishment, extension and sub-division of the building the strong yields prevalent in the investment market in late 2018 meant that after careful analysis a decision was made by investors to explore a sale – the decision being partly driven by the need for significant further capital to take the project to the next stage. A disposal was duly achieved to South Somerset District Council at a price of £2.82m. Having achieved a significant 40% capital gain plus a 10% income stream for the duration of the hold period this proved to be a very successful project for investors.