Valuation at 31 March 2019:

£9.5 million

Valuation at 31 March 2018:

£8.6 million

Contracted rent at 31 March 2019:

£985,000                                                            

Contracted Rent 

£916,000

Occupancy:

100%                                                                                                           

Key tenants:

Tuff X Processed Glass Ltd, Delphi (UK) Holdings Ltd, The Quality Moving Group Ltd

What is it?

We acquired the Nexus industrial estate shortly after IPO in September 2017. The estate comprises 11 units totaling 184,8000 sq ft, together with 4.2 acres of development land. It has strong transport links and is situated on junction 4 of the M57 motorway.

What have we done since purchase?

Since we bought Nexus, we have let the one vacant unit at a rent 5.4% ahead of the March 2018 ERV and agreed a new 15-year lease, with a break at year 10, on 42% of the industrial space. We have also submitted a planning pre-application for 30,000 sq ft of industrial space on two acres of the development land, along with a petrol and electric charging station and a drive-through on the remaining 2.2 acres.

What is the future?

We intend to capitalise on planning for the development land, which offers a significant valuation uplift, while extending the WAULT and capturing rental growth through renewals and lease re-gears.

Comment 

“A key part of our approach to value creation is to bring forward planning for unutilised land around our assets. We look forward to moving ahead with our proposals for this site over the coming months.”

Paul Makin
Investment Director, Tilstone