Mayfair Capital has completed the lettings of two warehouse units on Orion Business Park in Stockport. The units, which were acquired by Mayfair on behalf of the Property Income Trust for Charities (PITCH) in December 2020, were recently refurbished and achieved a rental increase of 23%.
The circa 39,000 sq ft Unit A has been leased to PL Distribution, which has taken the space on a 10-year lease at a rent equivalent to £7.50/sq ft. Hamilton Pharmaceuticals has taken the fully refurbished Unit B, which comprises circa 30,000 sq ft, on a 10-year lease on a rent of £8.25/sq ft.
The refurbishment programme saw both warehouses fitted with rooftop solar panels, which provide circa 140kWp for each unit, with the energy being provided to the occupier through a power purchase agreement. The EPC rating of Unit B improved from C to A as a result of the refurb.
Scott Fawcett, director of asset management at Mayfair Capital, said: “We were attracted to the units given their modern specification and strong location, as well as the potential to enhance the income through active management. We are pleased to have completed our refurbishment programme, unlocking untapped value in both assets. This project is a good example of the asset management strategy undertaken by PITCH and demonstrates how investors can enhance portfolios even amid challenging market conditions.”
Simon Martindale, fund director of PITCH, added: “The warehouse sector is currently undergoing price reductions in the face of a higher interest rate environment; however, the strength of occupier demand remains undiminished especially for well-located and specified units with strong sustainability credentials. This successful re-letting initiative is testament to the quality of asset in the portfolio and the continued importance and relevance of a thematic investment strategy.”
