Sale of Cumberland Avenue, London
Cordatus Real Estate and Lindley Mortimer acting on behalf of GE Capital Real Estate have concluded the sale of the Bakkavor Industrial investment on Cumberland Avenue, Park Royal.
We worked closely in the sales process with Lindley Mortimer to ensure the deal concluded within a specific timescale.
Cordatus Real Estate had asset managed the property since 2007 and were responsible for concluding the 2011 rent review and the concurrent lease re-gear and 10 year lease extension to 2026 at the property.
The property, which is located on London’s premier industrial park, comprises a modern freehold unit of 5,423 sq m (58,375 sq ft), let to Bakkavor Foods for a further 13.75 years. The passing rent of £683,000 per annum equated to £125.94 per sq m (£11.70 per sq ft).
The investment was offered to the market at a price of £10,325,000, reflecting a yield of 6.25% and following a targeted marketing campaign a price of close to £11,000,000 a yield of sub 6% was achieved. The sale price achieved was 14% ahead of book cost.
Mike Channing, Director, commented – we were delighted with the way that the market received this investment opportunity and there was strong interest from a number of buyers. The combined attractions of location and a long lease to a strong covenant ensured that a good price was achieved.