Ikon Trading Estate, Droitwich Road, Hartlebury, Kidderminster DY10 4EU
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Reversionary multi let industrial estate investment opportunity.
Located in an established industrial area between Kidderminster & Droitwich, ½ mile from Hartlebury Trading Estate.
Multi let industrial estate extending in total to 160,781 sq ft across 14.60 acres. 28 units ranging from 605 sq ft to 41,432 sq ft.
There is also a 1.6 acre undeveloped plot towards the front of the estate with planning permission for industrial development.
The industrial estate is currently 90% let to 18 tenants on 23 leases. There is an AWULT of 2.52 years to expiries and 2.15 years to breaks. The weighted average length of occupancy of existing tenants is over 17 years.
The current combined rent is £794,990 per annum. Rents range from £3.00 per sq ft to recent deals at £10.00 per sq ft. ERV – £1,065,000 per annum, an increase of just under 35%, based on latest lettings on estate.
Short term landlord asset management opportunities over the next 18 months on 66% of the current income. There are 14 leases events by the end of 2025.
We are instructed to seek offers in excess of £9,200,000 (Nine Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT.
A purchase at this price would reflect a net initial yield of 8.28% on the current income, allowing £200,000 for the 1.6 acres of development land.
Based on our ERVs there is a reversion to 11.1% based solely on the existing accommodation.
A purchase at this level shows a capital value of only £56 per sq ft for the existing units.
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