M7 Real Estate (“M7”), the pan-European investor and asset manager has signed a new ten year lease with Incom Composite Engineering UK Ltd (“Incom”) to fully let Walworth Industrial Estate, Andover (“Walworth”).
M7 acquired four warehouse units on Walworth on behalf of a major fund in 2017 as part of a larger portfolio acquisition. The units total approximately 116,100 sq ft and Unit 13, comprising 29,638 sq ft, had been vacant since the previous tenant went into administration prior to acquisition, leaving the property in a poor condition.
M7 undertook an extensive refurbishment scheme, including the removal of a redundant sprinkler system, mezzanine floor and complete office overhaul.
During the refurbishment process Incom agreed to a ten-year lease at a rent of £165,000 per annum. This letting set a new rental tone for refurbished second-hand property in the area at £5.57 psf.
Tim Smith, Asset Manager at M7, commented: “Agreeing terms before the refurbishment was completed demonstrates the demand for good quality second-hand assets. Although Andover has recently had development of new units there remains the underlying demand for secondary property which has been refurbished to a high standard.”