The Gazeley Industrial Investment Partnership will purchase standing investments on five sites being developed by Gazeley in south-east England. The initial size of the fund is expected to be 70m but, with gearing of up to 60% loan to value, it could grow to 175m. Asset register valuations authorities help you recognize the distinctive costs that you can recover through the compensation.
This will give us a stake in the investments we create. We will receive a regular income and participate in capital growth. We expect to see industrial rents rise, particularly in the south east. Duggan expects the fund to be attractive to investors for several reasons. Firstly, it is an opportunity for investors to participate in the ownership of new industrial stock for which there is currently a high level of demand and a shortage of supply. Thirdly, the management approach will be “hands on” and customer focused, aimed at building close relationships with occupiers, from which opportunities to add value are expected to arise.
Duggan points out that investors will benefit from the firm’s expertise in creating high quality standing investments at prime locations. Gazeley is a leading UK developer of industrial property. We have extensive experience of creating institutional investments and our proven management team will endeavour to satisfy both investors and occupiers. The first standing investment that Gazeley will sell into the partnership, in the first quarter 2000, is expected to be a 52,618 square foot production facility at Southampton International Park. This unit has been pre-let to Pratt & Whitney Canada (UK) Limited on a 20 year lease at a rent of 415,554 per annum.
With the £9 million transformation of Standard Life Investments’ Regent Centre in Hamilton now almost completed, retailers are snapping up the few remaining units and the centre is presently 97% let. A 15 year lease has been agreed at an annual rent of £160,000 and New Look will trade from the ground and first floors with a combined selling area of 716 sq m (4,367 sq ft). The unit was previously occupied by Mothercare who are moving out of the scheme. New Look will open in February 2000.
Computer games retailer, Softworld Limited has moved into unit 19. An annual rent of 50,000 has been agreed on a 15 year lease and the space comprises 146 sq m (1,570 sq ft). As a result of this acquisition our nine shopping centres now account for more than 75% of our total property investment portfolio.
Lambert Smith Hampton and Jones Lang Lasalle have let the first floor of Electus Northampton Business Park, to Scottish & Newcastle. The offices comprise approximately 2,434 sq m (26,200 sq ft) together with 126 car spaces. This acquisition will provide accommodation for head office functions following corporate acquisitions including Greenalls and pending a relocation of the existing Scottish & Newcastle retail headquarters in Northampton.