The Crown Estate has taken advantage of a strong market in the south of the UK by offloading two industrial assets in deals worth a combined total of £21.5 million.
Crown Industrial Estate in Taunton was acquired by Legal & General Property, on the behalf of its Industrial Property Investment Fund (IPIF) for a total of £17.25 million. The 167,000 sq ft estate was constructed during the 1970s in a series of phases, and includes tenants such as Smiths News, Cable & Wireless, Screwfix, Skansa and Debenhams in its 27 units.
Senior asset manager for IPIF at Legal & General Property, Tim Packer, believes the industrial estate will prove to be a valuable asset for the Fund.
He says; “Further increasing the Fund’s weighting to trade occupiers, this acquisition provides us with a number of attractive asset management opportunities.
“Using our unique development and sector specialist skills, we look forward to turning the estate into the dominant industrial trade scheme in Taunton.”
The second deal struck by The Crown Estate this week concerns the Victory Business Centre in Isleworth. This was snapped up by the Dunmoore Group for £4.25 million, and includes two vacant units which provide plenty of scope for future tenancy agreements.
Measuring 41,000 sq ft in total, the centre offers tenants a flexible mixture of hybrid industrial and office accommodation. Current tenants include BCM, Northropp Grumman and Danfo, yet the new owner will presumably seek to add to this list in the coming weeks.
Managing director of Dunmoore, Jeff Hobby, says; “This acquisition fits our strategy of acquiring industrial stock which can be successfully repositioned in the market place, and we have some really exciting ideas to enhance the quality of the estate.
“We are currently seeking to reinvest cash from our £50 million GDV Residential development at Langley, and this purchase represents an excellent step in that process.”
These latest deals fit well with The Crown Estate’s current strategy, which has seen the disposal of a number of its industrial assets in order to place a greater emphasis upon dominant retail and leisure schemes in regional areas throughout the UK. As a result, it has become the fourth largest direct owner of dominant out of town shopping and leisure destinations in the country.
Regional portfolio manager at The Crown Estate, Hannah Milne, says; “With the economic recovery continuing to move beyond London, investors have been increasingly looking to make new acquisitions, especially in assets like industrials which have been less fully priced than retail or offices over recent years.
“In the context of a strong investment market, we have been able to make opportunistic disposals at Taunton and Isleworth which will generate capital for deployment across our core sectors.”
In a separate announcement, The Crown Estate has confirmed that it has appointed JLL’s UK retail team and Wilkinson Williams as joint retail agents for Fosse Park in Leicester.
The Crown Estate acquired the 560,000 sq ft retail destination in a £345.5 million deal last summer, and has plans to maximise income from the new asset.
Senior Asset Manager, Samantha Ross, said: “The experience of both JLL and Wilkinson Williams will be invaluable as we look to drive performance through active asset management, enhancing tenant mix along with improving the appearance and overall environment of the scheme to reinvigorate this premier shopping park.”
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