Beacon Business Park has been sold to a UK real estate investment trust for £7.9m.
The 90,847 sq ft industrial estate located in Caldicot has been sold to the London Stock Exchange listed Industrials REIT, in one of the largest commercial property transactions in Wales in the last six months.
Developed by a local property company 15 years ago, the business park provides 23 units ranging in size from 1,000 sq ft to 25,000 sq ft, generating an annual rent of £506,720.
Director of M4 Property Consultants, Dan Smith, who has been working with the company since its inception, represented them for its sale.
Mr Smith said: “Beacon Business Park is a high quality modern industrial estate. The variety of the size of units and their versatility have ensured a constant high occupancy rate (97%) and its location near the M4 motorway and the M4/M5 exchange have also proved beneficial to its appeal.”
He added: “When the client decided to sell this asset, we devised a strategy and collaborated with them to maximise the value of the asset as a whole and make the property attractive to potential investors. We undertook a discrete marketing campaign, approaching a very select number of potential purchasers who we knew were the most likely to be interested and bid strongly and were very pleased to conclude the deal with Industrials REIT.”
This is the third investor deal M4 Property Consultants has completed in the last six months.
The local property company has recently advised on the preparation and sale of Forgeside Industrial Estate in Cwmbran to a private investor which completed in November last year.
It also carried out a specific investment brief for another client, identifying a suitable retail property in Llandrindod Wells to purchase and represent them during the transaction.
Speaking on the commercial property investment market in South Wales, Mr Smith said: “Low interest rates and the strengthening economic outlook for 2022 are driving demand. We are seeing many private investors and property companies with considerable cash to invest.
He added: “Whilst industrial property continues to be flavour of the month, we continue to experience strong demand for convenience retail, out of town retail and even good value offices. We are also noticing more clients willing to consider more alternative markets such as healthcare, nurseries and other such uses which previously would have often only been considered by specialist purchasers.”
