Key statistics as at 31 March 2019 

Valuation:

£4.6 million                                                                         

Valuation at IPO:

£3.6 million

Contracted rent:

£344,000

Contracted Rent at IPO:

£303,000

Occupancy:

100%

Key tenants:

Turners Garage Ltd, Ultrimax Coatings Ltd, Redwood Global Ltd

What is it?

Shaw Lane is an industrial estate of six units, totalling 65,6000 sq ft. It occupies a strong location, just five minutes’ drive from junction 4 of the M18, which provides direct links to the A1(M). We acquired the property at IPO and since then we have used our asset management expertise to enhance both income and value.

What have we done since purchase?

We invested £650,000 of capital expenditure on three units which were all vacated and re-let within the year. The new lettings were 17.1% ahead of the previous rent and ahead of ERV.  Contracted income for the estate as a whole is up 11.8%, while the valuation has risen by 27.2%.  We recovered just over half of the invested capital from the outgoing tenants as dilapidations receipts.

What is the future?

These lettings have set a new rental tone for the estate, which will provide evidence for rental growth on the remaining assets at review. Securing renewals will enable us to extend the WAULT for this asset.

Comment

“Shaw Lane is a great example of our ability to use targeted capital expenditure to support re-lettings ahead of programme and rental growth, which in turn drive higher capital values. This is a well-located estate and we see good potential for further income growth.”

Paul Makin
Investment Director, Tilstone