LaSalle Investment Management has let the largest unit on its prime industrial site at West Ham Industrial Estate

West-Ham

West Ham Industrial Estate is an established business community, centrally located 1.2 miles from Basingstoke town centre. The estate is almost adjacent to both the Basingstoke ring road and the West Ham Leisure Park. There is easy access to the M3 motorway at junction 6 & 7 approximately 3 and 4 miles away respectively.

West Ham Industrial Estate provides a variety of industrial / warehouse and hi-tech units. The available units have been subject to refurbishment and offer flexible accommodation from 8,974 – 30,360 sqft.
Current occupiers on the Estate include: Fujitsu, Warburtons Ltd and Biomerieux.

Background

• Industrial/distribution unit of 107,000 sqft with 12 dock levellers and extensive gated yard. Last refurbished in 2007.

• Vacated end March 2013 resulting in increase in estate void rate from 9% to 31%

• Rental value equated to 22.5% of total ERV

Business Plan

WestHam

• Re-let at or above ERV to an acceptable covenant

• Secure as long a lease as possible to help position the asset for a potential sale within 2 – 3 years

• Negotiate dilapidations with outgoing tenant and undertake repair works immediately they vacate to minimise void period

Outcome

• Tenant completed dilapidations work to a good standard prior to lease expiry, enabling speedy re-occupation

• Terms agreed with Royal Mail Group Ltd in February 2013 with lease to start within 4 weeks of former tenant vacating

• 15 year lease with market-led incentive of 3 years rent free

• Rent 5% above ERV rising to 10% above ERV by 5th year review

• Tenant undertook roof replacement at cost £650,000 Landlord contribution £175,000

• Total asset value improved from £22.15m (Q42012) to £26.35m (Q42013)