Two lettings complete at newly refurbished Orion Business Park

Two lettings of warehouse units have completed at Orion Business Park in Cheadle Heath, following a major refurbishment programme by developers, Mayfair Capital.

Unit A has been leased to PL Distribution, which has taken the c.39,000 sq ft space on a 10-year lease at a rent equivalent to £7.50 per sq ft. Meanwhile, Hamilton Pharmaceuticals has taken the fully refurbished Unit B, which comprises c.30,000 sq ft. The rent reflects £8.25 per sq ft and is also on a 10-year lease.

The warehouse units on Orion Business Park, Stockport, were acquired by Mayfair Capital on behalf of the Property Income Trust for Charities (PITCH) in December 2020.

Since acquiring the estate, the team has completed extensive refurbishments on two units, which included the installation of rooftop solar panels. This delivers on the plan to enhance the sustainability credentials and specification of the assets, with the aim of increasing their attractiveness to occupiers and enhancing their already attractive income. The solar panels provide c.140kWp for each unit, with the energy being provided to the occupier through a power purchase agreement. Following the full refurbishment of unit B, the EPC rating improved from C to A, with its agreed rent up 24% on the pre-refurbishment figure.

Scott Fawcett, director of asset management at Mayfair Capital, said:

“We were attracted to the units given their modern specification and strong location, as well as the potential to enhance the income through active management. We are pleased to have completed our refurbishment programme, unlocking untapped value in both assets. This project is a good example of the asset management strategy undertaken by PITCH and demonstrates how investors can enhance portfolios even amid challenging market conditions.”

Simon Martindale, fund director of PITCH, commented:

“The warehouse sector is currently undergoing price reductions in the face of a higher interest rate environment; however, the strength of occupier demand remains undiminished especially for well located and specified units with strong sustainability credentials. This successful and re-letting initiative is testament to the quality of asset in the portfolio and the continued importance and relevance of a thematic investment strategy.