ANDERSTAFF INDUSTRIAL ESTATE, HAWKINS LANE, BURTON ON TRENT, STAFFORDSHIRE, DE14 1QA

Investment News

FHP acting on behalf of their retained clients, Hillary’s Commercial, are pleased to announce the completion of the acquisition of the above multi-let industrial estate.

The property comprised a purpose-built 18 unit multi-let industrial estate totalling 18,500 ft² erected approximately 35 years ago.

The property is arranged in two sections with 6 units fronting onto Hawkins Lane with the remaining 12 units fronting onto the service road and forming part of the courtyard development.

The property is let in its entirety on two coterminous leases to East Staffordshire District Council for a term of years expiring in March 2017.

Under the terms of the lease the local authority sublet the individual units.  The rent is fixed at 80% of the aggregate market rental value.

At the present time there is a current net income of circa £84,000 per annum which will rise as and when the head lease falls away to a figure of not less than £105,000 per annum.

Noel Roper of FHP who acted on behalf of Hillary’s throughout comments:

“We were delighted to be able to acquire this property by a private treaty to add to the already existing investment portfolio owned by Hillary’s within Burton-on-Trent.  This estate is well-established occupying a prime location within the Hawkins Lane industrial area.

It is the intention of Hillary’s over the next two to three years to carry out various works of refurbishments and improvement and to gradually increase the rental value of anything up to £110 to £120,000 per annum as and when the lease to the local authority falls away.

The purchase price agreed was £1,000,000 which shows an initial return of 7.8% and, more importantly, a reversionary return of 9.86% rising later on to in excess of 10 or 11% when the units have been refurbished and re-let at materially higher rents”.

Adam Burdett of Intali acted for the vendors, a private property company.

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