Powell Lloyd, a PAI member firm, has purchased an office building on Bridgend Science Park for £2.41 million.
Acting on behalf Hastingwood Securities Powell Lloyd have completed the purchase of the virtual freehold of Unit 3 from a fund managed by Chancerygate in a transaction representing a Net Initial Yield of 8.45%.
The modern 16,842 sq ft two-storey office building occupies a 4.35 acre site on the Bridgend Science Park, near Junction 35 in Bridgend. The building is fully occupied by 3M Healthcare which operates as a research, development and manufacturing facility specialising in producing food safety testing materials and equipment. It attracts a current rent of £217,677 per annum, which is set to increase in three years’ time to £257,948 per annum.
James Sanders, Director at Powell Lloyd said: “This purchase represents the company’s second strategic acquisition in South Wales recently, demonstrating its confidence in the region. The property sits on a good quality office park let to a strong tenant with a fixed rental uplift to come in 2021”
Brian Cook of purchaser Hastingwood Securities commented: “We were attracted by the high quality tenant, strong occupational profile and long-term income offered by this building.”
Bridgend Science Park was established in the early 1990’s to provide research and development premises and is home to a number of well-regarded global occupiers including Severn Trent Water, Phontronics and CGI.