Client
-
Abrdn
Client Industry
-
Institutional Fund
Services Provided
- Disposal
Location
- Purfleet
Size/Value
-
491,885 sq ft
-
£143,000,000
- NIY 3.09%
Divison Involved
- Business Space Investment – Industrial
Date
- January 2022
Challenge
Savills were instructed by Abrdn to sell the Freehold of this prime logistics investment. The property consists of high specification industrial warehouse of 491,885 sq ft and provides a logistics investment opportunity in a prime inner M25 location.
The property is let to Carpetright PLC with an unexpired term of 10.76 years unexpired with a reversionary rent of £9.60 per sq ft.
Carpetright had undertaken a CVA and were seen as a potential risk. They had also allowed an illegal sub letting to take place that could impact on getting vacant possession if they failed. The challenge was to present this in the most positive way and as an attractive opportunity to realise the rental growth in this market.
Solution
Savills had to explore and reduce any transactional risk from the sale of the freehold, providing information on the Carpetright covenant. We also briefed our client’s solicitors so that we could rectify the sub letting before we selected a buyer. We undertook a selective marketing campaign, targeting investors that had evidenced they were the most active capital in the sector at the time and personally talked them through the issues and opportunities to minimize transaction risk.
Results
Through a thorough marketing campaign and two rounds of bids, Savills were able to complete a sale of the freehold to a one of the largest industrial buyers in the market.