DOUBLE ACQUISITION FOR CHANCERYGATE
Posted on: May 18, 2016
Leading industrial developer, Chancerygate, has completed new acquisitions in Peterborough and Hoddesdon investing a further £5m of its available capital into the market. The deals takes Chancerygate’s committed spend on site acquisitions since the turn of the year to in excess £25m with further significant transactions in the pipeline.
In Peterborough, it has acquired a key investment opportunity with development potential in the city’s eastern industrial area (pictured above). The 5.5 acre site on Padholme Road East is within Peterborough’s premier trade location and when developed will be branded as Peterborough Trade Park. The property currently produces income of £132,500pa and comprises two buildings currently let to Anglian Water and National Grid together with a 1.5 acre development plot.
George Dickens, Development Manager at Chancerygate comments: “This acquisition presents both asset management and development opportunities to our business. Occupational interest is already strong from trade counter, self-storage, car showroom, builders merchants and traditional industrial users and we will leverage against these to optimise the best outcome for our investment in this location”.
In an off-market deal in Hoddesdon, Chancerygate has also acquired an income producing investment in Bingley Road which has development potential. The four-acre site is currently occupied by an 80,000-sq ft 1970s property let on a flexible lease producing £320,000pa.
Jonathan Lee, Development Manager at Chancerygate, comments: “The purchase price reflects an attractive net initial yield and presents a short to medium-term opportunity to either re-gear the lease or redevelop”. A redevelopment would provide around 75,000 sq ft of warehousing.
Doherty Baines advised Chancerygate on the Hoddesdon purchase while JLL acted for the vendor. Drake Commercial advised the vendor at Peterborough.