Oceanic Estates makes £3.8m acquisition in Eastleigh
21 July 2011
Oceanic Estates Limited based in Marchwood, Southampton, has purchased a 110,000 sq ft warehouse in Eastleigh for £3.8m, following an introduction from the South Coast team of national commercial property consultancy, Lambert Smith Hampton (LSH).
Avalon, Unit 4 Parham Drive in Eastleigh, is let to Just Data Systems Ltd which sublets the property to Jamie Oliver Group Ltd. The property comprises a 110,000 sq ft detached high-bay warehouse - one of very few along the South Coast.
Just Data Systems Ltd took a short lease on the property for a term of six years due to a contract with the Jamie Oliver Group Ltd. Subsequently, it sublet the premises to Jamie Oliver Group Ltd.
Oceanic Estates’ purchase of Avalon was an “off market” transaction, meaning that the building wasn’t being openly marketed to investors. The deal followed proactive tracking of the property by LSH’s South Coast team, which was involved in the original letting to Just Data Systems Ltd.
Jerry Vigus, Director within LSH’s South Coast team, commented: “We have stayed close to this property, knowing that it could potentially be bought. We indicated that a quick decision had to be made and therefore approached Oceanic Estates, knowing that the business had the resources available to buy the property and move quickly. We were then able to negotiate terms and purchase the unit within 14 days of agreeing a price.”
The property was purchased from Craigard Eastleigh LLP, which has managed the unit since it was acquired, and which secured the letting to Just Data Systems in 2009. A quick deal was agreed between Oceanic Estates and Craigard Eastleigh LLP with LSH advising Oceanic Estates.
Harry Hutchinson of Oceanic Estates commented: “This is a significant acquisition for us, and we firmly believe Avalon is a strategic property in a popular location. We are grateful that LSH put the opportunity to us and from its advice and market knowledge we were able to secure the property.”
The property was bought for £3.8m, which equates to a low capital value of £34.50 per sq ft, and benefits from four years income.
Image shows: Parham Drive, Avalon
Image copyright: Lambert Smith Hampton
For more media information:
Contact: Laura Scott, Lambert Smith Hampton
Tel: 029 2049 0499
Email:lscott@lsh.co.uk
Web:www.lsh.co.uk
Twitter: @laurascott1
