A Plymouth industrial estate leased to the city council has been sold for £4.45m – almost £1m more than it was bought for.
London-based commercial property investment company Ace Liberty and Stone Plc bought the Willow and Holly Court units, at Marsh Mills, for £3.5m in April 2016 but has now sold it to an unnamed buyer for a healthy profit.
In effect two cul-de-sacs off St Modwen Road, Willow and Holly Court are let to Plymouth City Council until 2032 and are then sublet as starter units for businesses.
Holly Court comprises a total of 18 industrial units, which are arranged within two terraced blocks around a central courtyard providing communal parking facilities, loading and circulation space.
Willow Court has 11 industrial units, which are also arranged within two terraced blocks around a central courtyard with parking spaces.
The units – suitable for uses including retail, trade counter and offices – were built in the 1970s, cover a combined 30,000sq ft and bring in a rental income of £205,000 a year.
Ace Liberty and Stone, which specialises in commercial property investment opportunities across the UK, also sold two other properties in addition to the Plymouth industrial units – and bought another.
(Image: Google)
In an update to its shareholders, the company said it had exchanged contracts for the unconditional acquisition of Unit M, 9 Hunters Row, Stafford, for £1.26m. The tenant is Iceland Foods Ltd with eight years remaining on the lease. The rental income from the property is £95,000 a year.
Ace Liberty and Stone also completed the sales of Bridge House, Dudley, for £5.1m, after buying it in March 2014 for £4.1m. It also sold Hillcrest House, Leeds, for £2.3m, having purchased it in November 2013 for £1.45m.
These sales crystallise profits of £2.8m as well as enabling a reduction in the company’s secured borrowing and freeing up funds for further acquisitions.
Ismail Ghandour, Ace Liberty and Stone chief executive, said: “These property sales yield a profit of nearly 35% on the prices originally paid in addition to the very substantial rents received over a long period.
“The cash from the sales enables a reduction in borrowing, which in turn strengthens the company’s position for future acquisitions and growth.”
Business Live’s South West Business Reporter is William Telford. William has more than a decade’s experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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Ace Liberty and Stone’s portfolio of properties is located across the UK and currently includes Sunderland, Middlesbrough, Gateshead, Barnstaple, Margate and Manchester.
The company finds commercial and residential properties which have the potential for an increase in value through creative asset management activity, such as change of tenancy, change of use or new lease negotiation. Ace Liberty and Stone then makes profits by disposal of properties and achieving better-than average returns on capital. With strong support from shareholders and mortgage lenders, the company is currently seeking further investment opportunities in the UK.
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