Tuesday, March 5, 2013

News: £7m sale is all part of the evolution of the AMP


The successful sale of the fully-let Evolution development on the Advanced Manufacturing Park (AMP) in Rotherham, is expected to advance the development of a second phase of light industrial / hybrid units.

Cornerstone Real Estate Advisers acquired the 87,500 sq ft development for £7.2m, representing an initial yield of 9.5%. It was developed speculatively in 2008 by a joint venture company created by landowner Harworth Estates and property developer Strategic Sites. It was fully let in 2012 and has achieved record rental after the recent Rolls-Royce tenancy.

Campbell Carruth, business parks director at Harworth Estates, said: "Evolution has proved to be a first class development: within the first six months of 2012 we let four units generating an annual income of over £250,000 and total annual rental income is now £725,000. Other tenants at Evolution include Carbolite, Polymer, Dormer Tools, Xeros, Struers and Liebherr.

"The demand for space at Evolution provided the platform for this sale. It has been so successful that demand was over-subscribed."

Law firm hlw Keeble Hawson represented Harworth Estates in the sale and OBI Property acted for Cornerstone. Richard Smith, partner at hlw Keeble Hawson, said: "Over the last few years the AMP has been recognised as the prime location for any company wanting to work at the heart of Europe's advanced manufacturing community. Securing a blue chip tenant of the calibre of Rolls-Royce to the AMP was critical to attracting investor interest in Evolution, which was the first speculative development at the AMP."

Plans are currently being finalised by Harworth Estates to assess the potential development platforms across the remaining AMP site and includes additional land which would take the full size of the development up to around 150 acres. This includes the development of a second phase of light industrial / hybrid units similar to the existing Evolution units.

As the Helical Governetz proposals for a 60,000 sq m government office campus on the Highfield Commercial site are not going to be delivered it is expected that the rest of the site will most likely reflect the less dense development seen at AMP.

Harworth Estates website
AMP website

Images: Strategic Sites


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