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£11.1m deal for Tokenspire Business Park

A major Beverley business park extending to more than 24 acres has been sold in a deal worth £11.1 million.

Regional REIT, the regional real estate investment specialists, said that London and Scottish Property Investment Management (LSPIM) has contracted to sell Tokenspire Business Park in Hull Road, which had been previously acquired in March 2016 for £8.5m.

Among the 33 firms currently based at the park are furniture company Alexander Ellis, Sargent Electrical Services Ltd, QDOS Entertainment (Pantomimes) Ltd, Lloyds Removals, Beverley Light Haulage and the East Yorkshire Beer Company.

In a statement issued to Beverley FM, Regional REIT said: “Since acquisition, the asset manager increased occupancy from 73.8 per cent to 94.3 per cent … Simultaneously, rental income was increased to c. £829k pa, an uplift of 24 per cent since acquisition. LSPIM’s completed its business plan by undertaking much needed improvements to the estate’s infrastructure, resulting in attracting new tenants reducing void periods, assisting in retaining existing tenants, increasing income and improving the value of the property substantially. All this was achieved well within the five-year business plan period.”

At the time the business park was first offered for sale, the agents said they had been instructed to seek offers of £10,750,000. Their brochure stated: “The estate is fully self-contained and secured and consists of 49 units set out in a combination of terraces and detached industrial units, several storage compounds and two interlinked office blocks to the front of the site.”

It continued: “There are two potential development sites and further development could be constructed on elements of the car park, particularly to the front of the site.”

In commenting on the sale, Stephen Inglis, Chief Executive Officer of London & Scottish Property Investment Management, said: “This is a further example of achieving excellent results by utilising our unique management platform to undertake a pre-agreed business plan.

“This has not only achieved increased rental income but also improved the capital value of the asset. We have maximised shareholder returns by selling an asset we have completed the business plan on into a competitive attractive market for multi-let industrial properties.

“We have a very substantial pipeline of acquisition opportunities and we will be recycling the proceeds of this sale into assets offering asset management initiatives, rental growth potential and thus higher future returns.”