Tungsten Properties, a mid-box industrial and warehouse developer based in Leicestershire, has sold units 1 to 4 at its new warehouse and industrial project at Downs Road in Witney, Oxfordshire, to Ropemaker Properties, part of BP Pension Fund, in an off-market transaction for £26 million.
The units total 195,000 sq ft and are part of phase 1 of the development project comprising seven warehouses and industrial buildings.
Phase 1 reached practical completion in July 2021 and 80% is currently sold or let: three of the four units are fully let to Meech International, a manufacturer of static control, web cleaning and compressed air technology which took 22,000 sq ft, a confidential occupier which took 28,000 sq ft, and Certikin International, Britain’s largest manufacturer and distributor of swimming pool equipment which took 125,000 sq ft respectively. For the rest of phase 1, one unit was sold to Rofgo Venture Ltd earlier in the year, two units are due to complete imminently, with five remaining available units of 11,000 sq ft.
Phase 2 of the project is subject to a planning application which has been submitted to West Oxfordshire District Council and will encompass 169,000 sq ft of new employment space across four buildings. Subject to approval, this will bring the whole project to total 490,000 sq ft.
David Mole, development director, Tungsten Properties said: “The recent lettings underpin the strength of the West Oxfordshire market, in particular the discrepancy between demand and supply of new, high spec employment space. This speculative scheme has proved extremely successful, with 80% of phase 1 being let or sold prior to practical completion. The sale to Ropemaker Properties reflects the current high demand from investors for well-located, built and let buildings. We have strong interest for the remaining units from fast-growing companies needing manufacturing and warehousing space in Oxfordshire. We look forward to delivering phase 2 to build further space to help boost jobs and the economy.”
Jeff Penman, managing director, Tungsten Properties said: “This is our first significant development using the Tungsten balance sheet, coupled with our £50m Revolving Credit Facility from Fortwell Capital. This relationship has allowed us to achieve full value from the exit sale.”
For the sale, Franck-Steier Price acted on behalf Tungsten Properties; and Griffiths Eccles acted for Ropemaker Properties. Carter Jonas and VSL acted on behalf of Tungsten Properties for the lettings.