Housing association buys Deptford site for £15.5m 13.02.15
The Milton Group has sold its Sun Wharf holding in Deptford, London SE8 to housing association Family Mosaic for £15.15m.
The property which is located at Creekside 300m from the Thames comprises a 48,378 sq ft warehouse on 1.75 acres producing a current annual income of £400,000.
Sun Wharf is close to the Trinity Laban Conservatoire of Music and Dance and less than 15 minutes’ walk from Cutty Sark DLR station and Deptford over ground station.
Showing a net initial yield of 2.5%, the sale reflects the site’s potential for residential redevelopment when the current occupational lease expires in 2022.
Simon Higgins of Levy Real Estate’s Industrial team – who advised on the sale – comments: “This transaction is an excellent example of how London property owners can extract the future residential value of a landholding even where there remains a considerable unexpired lease term.
“Deptford Creekside is fast changing with six sites in the immediate vicinity of Sun Wharf having been sold in the past 12 months to residential developers and investors. This trend will continue further reducing the level of supply of industrial accommodation in South East London and driving rents across the sector.’’
Family Mosaic is one of the largest housing providers in London, Essex and the South East. It has a portfolio of around 24,000 homes for rent which are home to more than 45,000 residents.
Levy Real Estate and DTZ advised the vendors, The Milton Group, on the sale.