Tramway Industrial Estate, Banbury

Valuation 31st March 2018:

£12,300,000 (includes additional land acquired for £800k)

Valuation at IPO

£10,500,000

Contract Rent 31st March 2018:

£775,000

Contract Rent at IPO:

£723,000

Occupancy:

100%

Key tenants:

Magna Exteriors, Chiltern Railways, Cleenol

What is it?

The Tramway Industrial Estate is made up of ten units totalling 151,000 sq ft, on a site which is close to the M40 and next to the railway station and the town centre.

What have we done since IPO?

Since IPO we have let the final vacant unit to an existing tenant, meaning the estate is now fully let. We have also re-geared the leases with Magna Exteriors, which provides over one third of the income from the asset, and signed a new five-year lease. These actions have increased the contracted rent from the site by more than £50,000 per annum and extended the WAULT to expiry from 4.0 years to 5.4 years. In addition, we acquired six acres of adjacent land for £800,000. This land is let to Banbury Football Club.

What is the future?

We are exploring higher-value uses for the units and are working with occupiers to improve the existing retail element on the site. The market rental value for the units is now £845,000, up from £803,000 at IPO, compared with a period-end contract rent of £775,000 per annum. We are also looking at opportunities to acquire adjoining sites, to enhance the longer-term development potential.