Minster Court, Littlehampton – Sold June 2013

The purchase of Minster Court was completed in 2010. Comprising a well-located industrial and warehousing estate of ten starter units, it totalled just over 34,000 sq ft.

The pricing, inclusive of costs, was under £45/sq ft – less than the build cost. An existing income stream on the six let units generated a net initial yield of about 9% with a reversionary yield of circa 13.5% upon letting of the four vacant units.

The purchase at £1.25 million was secured by way of bank debt from RBS and £600,000 of equity from Atkins, the Foster family and three further private investors.
The vacant units were all let within two years, with one sold to an owner-occupier. All of the lease breaks were either negotiated out or passed without tenant action.
The property was sold in June 2013, with total capital revenues received about £1.83 million.
Investors received about 35% per annum total return.