South East property office/industrial portfolios attract strong investor interest
Strong investor demand for south east office and industrial property portoflios has been highlighted in three deals reported this week.
The three portfolios were all purchased by investment fund and turn-round specialists and sold for over their asking prices at yields of between 7% and 7.5%.
They comprised: six multi-let industrial industrial estates, known as the Axis portfolio, in Slough, Wokingham, Harlow, Park Royal, Edmonton and Rochester;
Hyde Park business park in Hayes, west London; and the Cyrus portfolio – over half a million sq ft of industrial space on three estates in Newbury, Maidenhead and Woking.
According to investment and development specialist Rob Bray of Bray Fox Smith: “While it is central London that is grabbing all the headlines, it is difficult for investors to find real value in those markets. This is driving investor demand towards other south east markets where there are good fundamentals of solid occupational demand and excellent covenants. We have seen up to 20 bidders on some of our recent investment sales.”
