Bridgwater - Purchased April 2015
A modern warehouse 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.
The property was purchased from the WH Smith Pension Fund for £1.965million, a 10% net initial yield and capital value of c. £58 per sq. ft. At the time of purchase, the lease had approximately 3.5 years until expiry. Discussions were held with Trelleborg regarding a lease renewal and extension of the property but unfortunately it was not possible to provide enough accommodation for its long-term expansion plans. A lease renewal has been concluded for three and a half years, giving investors an extended income stream and a future opportunity to extend and refurbish the space, sub-divide it into smaller units and create a very sustainable long-term investment.
Current yield with the improved rent is 10.85%.