Eastleigh buys Bournemouth industrial

By Paul Norman - Tuesday, September 12, 2017 13:15

Eastleigh Borough Council has bought AIM Aviation’s manufacturing unit in Bournemouth from corporate pension fund clients of Savills Investment Management for £18.17m, representing a net yield of 4.95%.

The building is located at the Aviation Business Park, an established aerospace and manufacturing hub, adjacent to Bournemouth International Airport. The property provides 158,769 sq ft (14,750 sq m) of internal space and is let to aircraft interior business AIM Aviation on a 25 year lease expiring in April 2041.

James Williams, director in the investment team at Savills, said: “We are pleased to have achieved a successful sale of this asset which our clients agreed to fund as a new development in 2014. The property is a purpose-built headquarters and manufacturing facility and will support the tenant’s growing global business”

Lucy Winterburn, director of investment at Savills Investment Management, added: “Bournemouth has performed well with the value of long, secure, index-linked income strengthening since terms were agreed to fund the development in 2014. The sale crystallises profit for reinvestment into other live development projects in the portfolio.”

Jerry Vigus, director of capital markets and logistics at LSH, said: “This is the second major transaction we have completed with Eastleigh Borough Council within the past six months, having advised on the acquisition of Regus House at Southampton Airport. With the purchase of the AIM Aviation facility at Bournemouth Airport being Eastleigh Borough Council’s first property purchase outside the Borough we were able to provide all the occupational and investment advice to the council to ensure the transaction went through smoothly.”

Eastleigh Borough Council Leader Keith House said: “This is Eastleigh Borough Council’s first major property transaction outside of the borough and we are very pleased with the acquisition of the AIM Aviation facility providing us with 25 years of unbroken income. The lease provides fixed uplift ensuring that the Council benefits from growth throughout the length of the lease.”

He adds: “This is the latest addition to the Council’s impressive commercial property portfolio that generates an annual income of around £5.5 million to help protect our frontline services.”

Savills IM was advised jointly by Savills and AW Associates. Eastleigh Borough Council was represented by LSH.

pnorman@costar.co.uk

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