Pump Lane, Hayes

Pump Lane was acquired for £3.8m as a multi-occupied, six unit light industrial estate located 4 miles from Heathrow Airport. The acquisition included Silverdale House, a stand-alone, 14,000 sq ft (1,301 sq m) 1950’s storage building and an adjacent 3,000 sq ft (278 sq m) storage unit, both of which were in poor repair and approaching the end of their economic life.

The investment offered an opportunity to underpin value by securing planning consent for a modern B1(c) / B8 scheme on the site of Silverdale House. Renewal terms were agreed with the occupier of Silverdale House to retain only the main building at a higher rent of £50,000 pax and with landlords redevelopment breaks. In parallel, detailed planning consent for an additional 17,000 sq ft of B1(c) / B8 accommodation was secured and a 5,159 sq ft unit was built speculatively on the plot of the smaller 1950’s storage unit.

The new build unit was let for 10 years at a rent of £51,074 pax generating a capital appreciation of £200,000 over the £450,000 development cost. The investment was held for a period of 13 years generating £4.58m of revenue before ultimately being sold to Chancerygate for £4.2m