Bristol Road, Bridgwater - Purchased October 2018
Acquired in October 2018 with the last few months of a lease remaining to Travis Perkins, this was acquired as a complex and exciting refurbishment / redevelopment project. The property comprises 38,500 sq ft on just under 4 acres of land and is in a highly prominent location. The existing building has been sub-divided into six units, has been re-clad and now presents like new. The smaller unit sizes created offer a wider diversity of target occupiers including trade counter users given the main road frontage. A separate 1.75-acre site has been created which is being marketed to owner occupiers or for a pre-let. Once Phase One has been fully let it is possible that investors may proceed with a speculative development on the site.
This scheme was purchased during the Brexit process in anticipation of a resurgence of tenant demand once the political decisions had been made and indeed, during the Boris Bounce there was quite a surge of interest from occupiers. The current pandemic has obviously suppressed demand, but the quality of the product created and its excellent location just a mile of the M5, makes this is an asset that is well positioned to perform extremely well as economic activity recovers.
Total of acquisition cost and refurbishment works is just over £4m. Targeted investor annual IRR over the 4-year timescale of the project is just over 15% per annum.