News Archive

ST. MODWEN SELLS KIERBECK BUSINESS PARK, BASILDON

St. Modwen, the UK’s leading regeneration specialist, has sold Kierbeck Business Park, its multi-let industrial estate fronting the A13 South of Basildon at Vange Wharf, to Petchey Holdings for £4.825 million reflecting a net initial yield of 8.06%.

The seven-acre property comprises six warehouse units totalling 91,200 sq ft and 97,500 sq ft of secure self-contained storage yards and was acquired in Autumn 2011.

St. Modwen has since been driving an active asset management programme to improve the quality of the investment and to build income value, which has included the re-gearing, renewing and extension of tenant leases on all-inclusive terms and the introduction of a more efficient service charge regime.

Nick Kay, Development Director at St. Modwen commented: “We had the finance, flexible approach and vision to secure this site in 2011. One of our key USPs is that we manage all our sites directly and we have used our significant expertise in active asset management to deliver an enhanced product.”

Richard Wright of Strutt and Parker who acted for St Modwen added: “The price achieved demonstrates the current investor appetite for well located industrial estates. Investors continue to pursue opportunities that are able provide a diversity of income as well as an opportunity to enhance returns through active management.”

St. Modwen continues to maintain a significant UK Business Park portfolio, which is represented in the South by Henley Business Park near Guildford, Eastleigh Railway Works in Hampshire, Woodingdean Business Park near Brighton, Cranfield University Technology Park and Wolverton and Letchworth Business Parks and is actively seeking to secure further opportunities.

Strutt & Parker acted for St Modwen; Petchey Industrial Properties was represented by GVA.