ldbury Point, Rood End Lane, Oldbury

Valuation 31st March 2018:

£5,500,000

Valuation at IPO:

£3,450,000

Contract Rent 31st March 2018:

£210,000

Contract Rent at IPO:

£91,000

Occupancy:

53.0%

Key tenants:

Euroby, Swansway Garages

What is it?

This industrial estate has 14 units totalling 96,000 sq ft. It is close to both the M5 and the mainline railway. The asset was originally acquired with 32.3% occupancy, presenting opportunities for value creation.

What have we done since the IPO?

Since IPO, we have continued a substantial refurbishment of the estate, on time and to budget. This has helped us to let half the vacant units, increasing contracted rent from £91,000 at IPO to £210,000 at the period end, while the market rental value for the units has risen from £377,000 to £465,000, representing growth of 23.3%. We currently have offers on 45.2% of the remaining vacant space.

Before:

Oldbury Point, Rood End Lane, Oldbury

What is the future?

We will continue to capitalise on the shortage of industrial units in this location, which is leading to rising rents and capital values, while working with our tenants to improve the WAULT.