Orchard Street LLP completes Belvedere industrial property purchase for over £11m

Orchard Street Investment Management has revealed that on behalf of St James’s Place UK Plc, it has completed the forward purchase of the development of a distribution warehouse in Belvedere for £11.3m.

The property has been bought from Buccleuch Property and Wrenbridge Land. Planning permission for a standalone 68,360 sq ft industrial development on the 3.8 acre site was obtained by the vendors in August 2017.

Construction of the Grade A warehouse, named the Axion Building, commenced in December 2017 with practical completion being achieved last month.

Richard Walters, partner at Orchard Street, said: “Our forward-purchase of the Axion Building provided the opportunity to acquire a prime warehouse asset in a supply constrained market at an entry price based on our asset management expectations.

“This site is located within Greater London’s key industrial hub which demonstrates positive growth prospects underpinned by high demand from companies looking to serve their last mile delivery requirements, leaving us confident it will let well.”

The Axion Building is situated in close proximity to the Docklands, central London and the M25.

Existing occupiers within close proximity to the site include Amazon, Ocado, Asda, Tesco and Lidl.

Neil Finnie, of Buccleuch Property, added: “We are delighted to have achieved practical completion of this development. During the planning, design and construction phases, the focus was always on delivering a high quality asset.

“The strength of the location and occupier demand for this sector was underlined by our ability to acquire the site without planning consent and then to secure £6m of construction finance from Royal Bank of Scotland.”