Portsmouth industrial estate sells for £19m

Merlin Park, off Airport Service Road, was completed in 2018.

It has been bought by Orchard Street Investment Management, a commercial property investment manager, with a net initial yield of 4.5 per cent.

The purchase was made on behalf of a pension fund client, and it was bought from British Airways Pension Fund.

Merlin Park has seven units totalling 88,000sq ft. It is fully let to four tenants with a long weighted average unexpired lease term of 11.9 years to breaks and a passing rent of £10.40 per sq ft overall.

Harry Buxton, acquisitions manager at Orchard Street, said: ‘We consider this best-in-class asset to be an excellent addition to our client’s portfolio.

‘The property provides resilient income from a diverse tenant mix, a long unexpired term significantly in excess of the market average, and strong sustainability credentials.’

SEE ALSO: Bar on South Parade Pier to become permanent fixture

Orchard Street was advised by Lambert Smith Hampton, whilst British Airways Pension Fund was advised by DTRE.​

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