29 Aug 2019
M7 fully lets Roman Industrial Estate, Croydon, London
M7 Real Estate (“M7”) the pan-European investor and asset manager has, on behalf of a major fund, secured a new letting for Units 5 & 6 Roman Industrial Estate, Croydon increasing occupancy to 100%.
The units totalling 2,698 sq ft on the 18,912 sq ft estate provide light industrial/warehouse space. The outgoing tenant entered into administration which resulted in the property being left in a poor condition. M7 undertook a refurbishment scheme removing areas of the mezzanine and redecorating both units. The units had an internal doorway which was left open to appeal to occupiers for either the individual units or the whole.
In just over six months, the refurbishment was completed and terms were agreed for the two units to a single tenant at £41,500 per annum (£15.38 psf). The lease was for a 5 year term with a 3 year tenant break option, with 1 ½ months’ rent free. The low level of incentive demonstrates the strong demand in the area for this type of unit. The letting was 47% above the previous rent and 37% ahead of the acquisition ERV set in August 2017, supporting the strong rental growth in the area.
Tim Smith, Asset Manager at M7 commented, “The time we took to complete the clearance, refurbishment and agree a new letting was a great achievement. The level of rent negotiated is also a testament to the demand of the local market for the right product in the right location.”