Poplar Park, Avonmouth

Case Study: Strategic Asset Management

We have recently concluded a lease renewal at this modern industrial unit in Avonmouth, an established distribution location to the north west of Bristol city centre.

Built in 2006, the unit comprises a single high bay warehouse constructed as one of four high quality units around 12 years ago. The building benefits from 10m eaves and a self-contained service yard. 

The previous rent equated to £6.50 per sq ft on a lease that expired in September 2018.  Following negotiations, a new 10 year lease has been agreed with the tenant with a break option in the fifth year. The rent has been revised to £7.00 per sq ft based on comparable market evidence for similar high quality units, and reflecting recent rental growth in the Avonmouth market as a result of an increasingly limited supply and healthy occupier demand.

The lease renewal has added over £600,000 to the asset’s value as a result of the increased rent and subsequent yield improvement, and defensively re-positioned itby securing a longer lease term. We believe that the asset will continue to perform strongly for our client based on the positive rental growth forecasts for Bristol’s industrial market