Unit 1, Wellfield Business Park, Preston Brook

The property is a modern two-storey B1 unit with 7,805 sq ft (725 sq m) of accommodation and 26 car parking spaces. It was ‘acquired’ following the merger of the Co-operative Group and United Co-operatives in 2008. At merger, the property was let but with a short residual lease term and was valued accordingly at £450,000. Once vacant possession was obtained, the property received a modest refurbishment using the outgoing tenants dilapidation settlement and the property was re-let to Phoenix Medical Supplies Ltd, a D&B 5A1 rated covenant, for a term of 14 years without breaks at £93,600 pax (£12.00 psf) and a 12 month rent free period.

With a 14 year lease term to a strong covenant, the strategy was to retain the investment for 4 – 5 years until the term dipped below 10 years and the yield began to soften. With 9 years of the lease unexpired, the investment was sold for £1.225m reflecting a net initial yield of 7.21%