Location

Stadium Way, Reading

Project

Value-add to south-east industrial estate

Activities

We completed a comprehensive refurbishment and re-letting of vacant units to improve the rental tone and all EPC ratings. Estate roads and common parts were improved to enhance letting prospects and liquidity. Planning consent was obtained for a drive-thru on an underutilised corner of the site with strong road frontage, and we redeveloped one terrace of units.

Results

The site was acquired in 2010 for £17.4m. Vacancy rates were reduced from 20% to 3% at the point of disposal, and average rents increased from £6.30 per sq ft to £10.10 per sq ft. The estate was sold off-market to a Tier 1 family office at a considerable premium to open market pricing, setting a new prime multi-let industrial yield benchmark for 2023. It was sold in 2023 for £44.4m at a 4.75% net initial yield.