The former Unigate Dairy in Melksham has been put on the market for £2.75 million, national property consultants Lambert Smith Hampton (LSH) announced today.
LSH is acting on behalf of vendors EBS Management to sell the 2.54 acre Avonside Enterprise Park, New Broughton Road, a self-contained estate that overlooks the River Avon.
Darren Sheward, head of office at LSH in Bristol, said there was already a high occupancy level from the 87,771 sq ft (8,154.1 sq m) of floor space, currently achieving an annual income of £290,000, which has the potential to increase once all units are occupied.
Although the sale will not affect existing tenants, there is redevelopment potential, subject to planning approval, for retail, trade counter and residential programmes.
And plans by Wiltshire and Berkshire Canal Trust to extend the canal from Semington to the River Avon, which would connect Melksham to Abingdon and the River Thames, could also prove attractive to a potential buyer.
“The estate already has a very loyal tenant base and a good spread of income from across a wide range of occupiers,” said Mr Sheward.
“But should these exciting plans be approved, then the re-opening of the canal will bring myriad opportunities for new cafes and restaurants in the town and this is something that the new purchaser of Avonside Enterprise Park could take full advantage of.”
Mr Sheward said that, assuming buyer costs of 5.8 per cent, the purchaser was likely to benefit from a net yield of 11 per cent on the current gross income.
Niall Christian of Michael Rogers, which is jointly marketing the site with LSH on behalf of the vendors, said: “This represents a very attractive commercial asset for an investor seeking a strong income return and potential for capital growth.”
Avonside Enterprise Park comprises three blocks – the main block is arranged in an L-shape over three and four storeys and is divided into retail, light industrial and storage units.
Block 2 is a single-storey building and includes retail, leisure and storage occupiers, while the third unit is home to leisure and light industry occupiers. There are also two detached single-storey buildings included in the site, which are adjacent to the River Avon.
The main property was built in the 19th century and was occupied by Unigate until 1969 and the main building fronting Bath Road dates from about 1905 and was extended in the 1920s.
Further details from Darren Sheward at Lambert Smith Hampton's Bristol office on 0117 926 6666 or Niall Christian at Michael Rogers on 0208 332 7788.