Frank-Steier Price Ltd. Leading niche commercial property investment practice Logo for Midlands Property Awards 09

December 2018

Saville House, Middlemore Lane West, Aldridge, WS9 8BG

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The property is located west of Aldridge town centre, close to M6 Toll, M6 and A5.  The property is a detached industrial unit in an established industrial area extending to 20,912 sq.ft.  Let for a term of 15 years from 13 June 2012 to Mellish Engineering Services Ltd at a rent of £72,693 per annum (£3.48 per sq.ft).  Minimum RPI rental increase at review in June 2022.  Offers sought in excess of £950,000 which reflect a net initial yield of 7.25% with a projected reversionary yield at review of 8.19% (assuming 2.5% per annum RPI growth).  Low capital value of £45.43 per sq.ft.

Franck Steier Price has recently completed the sale of a single let industrial investment on behalf of Paloma Capital.

The property is located in an established industrial area a mile from Aldridge town centre.

The property comprises two industrial units dating from the 1970’s with ancillary offices to the front. The property was refurbished in 2012 and sits on a 1.08 acre site. Overall the accommodation totals 20,912 sqft.

The unit is let to Mellish Engineering Services Ltd on a 15 year lease from 13 June 2012. The lease has 5 yearly reviews with a minimum increase to RPI. The current passing rent is £72,693 (£3.48 per sqft).

The property was sold to a private investor for £1,050,000 which reflected an initial yield of 6.54%. Andrew Dixon & Co acted for the purchaser.