Bamfurlong Industrial Park was acquired in June 2019. Totallling 201,936 sq ft, the multi-let industrial estate has 28 mainly detached industrial units of varying ages, of which several have been split into separate occupations.
The units are let on both medium-term ground rents and standard leases. This tenancy profile has presented us with opportunities to add value through a comprehensive programme of asset management.
With local supply at its lowest level in a decade and a nationwide shortage of good quality space, the plan has been to target specific areas of the estate to refurbish or redevelop industrial terraces or mid-box sheds. In other areas of the estate, where such opportunities are not available, our intention is to sell buildings.
In the first 12 months we have refurbished Units 2, 2a and 3 and subsequently let Unit 2 to Weatherark on a five-year lease. The new rent achieved reflected a 50% increase on the previous rent and established a new ERV for the short lease income at the estate.
We have also purchased the intermediate interest of two medium-term leases. The premiums paid, when aggregated with the initial valuations of the buildings, are at a more than 40% discount to vacant possession value. The numerous asset management initiatives already completed have seen a profit on cost over the first year of 35%.