Two Devon industrial units which are home to an engineering and software design services group which has just signed a major deal with the MoD have sold for £4.5million.
The two units – covering 70,000sq ft on the Pottington Trading Estate in Barnstaple – have been snapped up by an unnamed investor in a deal was concluded by award-winning Coverntry-based commercial property specialist Bromwich Hardy.
Bromwich Hardy founding partner Tom Bromwich said existing tenant Systems Engineering & Assessment (SEA) Limited would remain based at the site having recently agreed new terms on its lease.
SEA, which was founded in 1961 and is a subsidiary of listed business Cohort, has offices in the 海角视频, Canada and Malaysia and employs about 300 people.
SEA provides an extensive range of naval defence equipment, including an innovative trainable decoy launcher, and an anti-submarine warfare capability, the Krait Defence System, to the defence industry, and supports navies across the globe including in the 海角视频, South America, South East Asia and Australia.
Earlier this year it was awarded a new 10-year contract – thought to be worth up to £25million - for the management and upgrade of in-service sonar equipment for the Ministry of Defence.
And in March 2021, SEA was appointed to supply its Torpedo Launcher System (TLS) to a multi-ship programme in South America. The contract follows the adoption of the system by the Royal Navy and other leading international navies in regions including North America and South-East Asia.
In service with the 海角视频 Royal Navy for more than 30 years, SEA’s torpedo launcher has been a major draw for navies worldwide.
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Its unique design ensures that it is easily upgradable throughout its service life and significantly reduces the risk of capability obsolescence based on ammunition supply.
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The Pottington deal is the latest success for Bromwich Hardy, which was revealed to be the top performing firm in the industrial sector in the West Midlands this January, and the sixth best across the country. The site was sold by Scotsgrove Holdings Limited for whom the Bristol offices of JLL acted as agent.
Mr Bromwich said the deal was further evidence of the strength of the commercial investment market across the 海角视频, despite the impact of the pandemic.
“This is an excellent sale for all involved,” said Mr Bromwich. “Our client is delighted to have purchased an excellent investment opportunity for a very fair price and with an established and respected tenant in place.
“It is the latest in a series of investment deals we have helped conclude – with more still to come – which shows that there is still a healthy market for well-placed properties which tick all the right boxes.
“In this case, a reversionary lease has recently been completed to SEA for a further 10 years from April 2, 2022, at £320,000 per year, and we anticipate an initial yield of 7.51%.”