Lothbury Purchases on Trafford Park

MANCHESTER, U.K. - July 15, 2014 - PRLog -- The purchase, completed at the end of June from vendors Harbert Management Corporation, reflects an equivalent yield of 5.75%.

Premier Park, which was completed in 2008, comprises 21 modern industrial units, with 24/7 security, totalling nearly 200,000 sq ft. They are designed for warehouse and industrial use and let to 12 tenants, with three units currently void, albeit with a rental guarantee from the vendor. Units range from 4,724 sq ft (439 sq m) to 15,640 sq ft (1453 sq m), generating rental income of £1,146,863 per annum with rents ranging from £5.50 per sq ft to £7.40 per sq ft. The current rent passing is considered reversionary. Tenants include the BBC, Indesit, Selecta UK and KCI Medical.

Mike Toft, fund manager and director at Lothbury Investment Management, said: “We are very pleased to have secured Premier Park, which will join our core portfolio of assets. It has been our intention to invest in the area for some years and this purchase is a strategic, long-term buy that will deliver us secure income and excellent rental performance. It is also the best multi-let estate within the area.

“Tenants on Premier Park are on good covenants, the local economy is strong and there is high demand for good quality units such as these. Our first aim is to let the the void units, which, given the demand, we expect to do very quickly.”

Premier Park was built by SEGRO in 2008. The units are arranged in five separate terraces, with eaves heights up to 8m.

JLL advised Lothbury Investment Management and DTRE advised Harbert.

Lothbury manages unlisted property funds on behalf of institutional investors looking for indirect exposure to the UK and European property markets. The portfolio comprises two distinct but complementary parts: a core of prime assets that secure stable returns, and an active portfolio, up to 20% of the fund, that generates enhanced return through asset improvement.

This March, Lothbury Investment Management increased their assets under management for Lothbury Property Trust to more than £1 billion, marking an almost doubling in size since their management buy-out headed by Simon Radford in 2010.