The industrial sector has cooled this year but this has not adversely affected continued investment in the county, with developments performing well. A number of developments are coming forward including Altira Business Park at Herne Bay. The 28 acre site being developed by Kitewood Group, will provide approximately 46,450m² (500,000ft²) of office and industrial space, with 11 business units the first to be provided. Gillingham may witness continued investment with London & Stamford Investments Ltd having acquired permission for 12,170m² (131,000ft²) of office and industrial development on a 7.5 acre site on Bailey Drive.
The majority of development schemes continue to focus on small/medium sized units, with an increase in the number aimed at the rental sector rather than just owner occupiers. Demand for large warehouse premises remains steady.
Eurolink at Sittingbourne remains popular, witnessing the completion of Waterview Business Park this year, providing eight units, five of which were sold for £1130m² (£105ft²). Precision Park is available for freehold and leasehold turnkey developments of 929 -8361m² (10,000 to 90,000ft²). In Larkfield, Access 4:20 has completed 18 units ranging from 179m² to 1393.50m² (1930ft² to 15,000ft²) with four let and 14 sold at £1,378 to £1,453m² (£128 to £135ft²). Activity continues on Orbital Park, Ashford with the recent completion of the Glenmore Centre providing 27 new units and the sale of the remaining 1,115m² (12,000ft²) at Isis to a single occupier. Works have commenced on the Connect 10 development by Premier Property Group and Cirrus Properties to provide 24 units ranging from 106.83 to 1,412m² (1,150 to 15,200ft²) with completion due at the end of 2007.
In Medway, the Rochester Trade Park at Rochester Airport has completed, providing 21 units, with three under offer and 18 to let at rents of £80.73 to £86.11m² (£7.50 to £8ft²). The Easter Group have completed Stirling Park with 11 of the 16 units sold and two let. At Lordswood, Chatham, a new development of nine units known as Gladepoint is already 100% sold.
Goodman, formerly Rosemound Developments Ltd, acquired Kingsnorth Business Park in January 2007. Goodman will be submitting a planning application in autumn 2007 with a view to commencing work towards the middle of 2008. |
There is concern that the supply of suitable development land available within the county is becoming limited, resulting in a rise in land values. Remaining sites at Lakesview International Business Park, Hersden have been sold, with all plots within SEEDA’s adjoining nine acre holding also sold or under offer achieving £250,000 per acre. To satisfy demand, SEEDA, in partnership with Thanet District Council and Kent County Council, intend to develop a small commercial scheme on EuroKent, Thanet for occupation by the end of 2008.
With reducing clear land supply, investors are increasingly looking at opportunities to split and redevelop existing older style premises. Javelin at Henwood Industrial Estate, Ashford, comprises a refurbished building split into offices and five industrial units with all but one unit sold. The same developer, Scarborough & Benchmark Estates Ltd, has also redeveloped a warehouse on the 20/20 Estate, Maidstone, to provide office accommodation and 10 industrial units totalling 6,589m² (70,920ft²), with over 50% under offer. At Parkwood, Maidstone, Develica, jointly with Franthom Holdings are refurbishing and subdividing a former distribution facility into five high bay units and building 25 new smaller units, quoting £1,130-£1,400m² (£105-£130ft²).
The investment market remains bullish, although it is hampered by the lack of opportunities coming to the market. Many newly developed units are being bought by private investors on a vacant basis. This has resulted in continued hardening of capital values, with yields having fallen slightly further over the year. However, it is generally felt that in the current climate values are unlikely to see any further significant change in the short term.
Significant Sales
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Significant Lettings
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Industrial Rents
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Industrial Rental Growth
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Industrial Average Yields
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