Aviva Acquires Prime Central South Coast Industrial Park
Property News - Aviva Acquires Prime Central South Coast Industrial Park
Aviva Investors, advised by Colliers International, has purchased a prime industrial and distribution investment, Endeavour Park in Southampton from Cordea Savills for £37 million.
The Park, located on the established Millbrook Trading Estate next to the Southampton Docks also benefits from being within close proximity to Southampton Airport and major road and rail connections. The 15 acre mixed-use park comprises of warehouse, distribution, office and research and development facilities totalling over 280,000 sq ft and generates a total rental income of over £2 million. The average weighted unexpired term is just under 17 years. Tenants on the Park include Selco, UPS and Selex.
John Hanson, Director, National Investment, Colliers International, said, “Endeavour Park is a prime investment providing Aviva with long secure income. The investment is let to three tenants of institutional quality with over one-third of the income benefiting from guaranteed rental uplifts. The South Coast industrial market has improved significantly over the past 12-18 months and have witnessed rental growth across both the prime and secondary markets. The economic expansion combined with a recovering manufacturing sector has resulted in stronger levels of occupier demand which in turn has placed an increased upward pressure on rental levels.”
Louise Swinden at Aviva Investors, said “We are pleased with this acquisition, it provides a low risk investment with secure income suiting the requirements of the Fund. The asset also benefits from exposure to the fast growing parcel delivery and trade sectors”.
Colliers International acted on behalf of Aviva Investors. DTRE acted on behalf of the vendors, Cordea Savills and Canmoor Developments.