Goya Developments and Bilsdale Properties have sold Orchard Business Park – their light industrial joint venture in Woking, Surrey – to Royal London for circa £21m. The purchase price reflects a net initial yield, on topped-up income, of approximately 4.40%.
Located on the former Alent site on Forsyth Road to the north east of Woking town centre, Orchard Business Park is a development of six highly-specified warehouses in two terraces, totalling 77,000 sq ft of industrial space. The scheme reached practical completion in March 2017.
Three of the six units were pre-let during construction to McLaren Automotive, Euro Car Parts and CRM Trading. Marketing of the remaining three units is ongoing.
Jim Bryan of Goya Developments said: “The quality of the Goya product and the strong supply demand dynamics that we chase with every acquisition, is helping us drive the rents. Royal London will be able to continue to do this with the 3 remaining units so it will be a good deal for all parties.”
Nick Ogden, partner at Gerald Eve, added: “The sale illustrates the continued strength of demand for best-in-class, multi-let industrial estates in the South East. Royal London successfully fought off stiff competition from a host of institutional and local authority bidders, performing within short timescales to enable the developers an exit ahead of business plan.”
Goya Developments and Bilsdale Properties were advised by Gerald Eve and Fletcher King. Montagu Evans acted on behalf of Royal London.