The former Unigate Dairy, Avonside Enterprise Park in New Broughton Road, Melksham, has been put on the market for £2.75million.
National property consultants Lambert Smith Hampton (LSH) say that although the sale will not affect existing tenants, there is redevelopment potential, subject to planning approval, for retail, trade counter and residential programmes.
They add that 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. LSH is acting on behalf of vendors EBS Management to sell the 2.54 acre Avonside Enterprise Park. Darren Sheward, head of office at LSH in Bristol, said, “The estate already has a very loyal tenant base and a good spread of income from across a wide range of occupiers.
“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.”
Niall Christian of Michael Rogers, which is jointly marketing the site with LSH on behalf of the vendors added, “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.
Darren Sheward 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 in occupancy.
However, he added that assuming buyer costs of 5.8%, the purchaser is likely to benefit from a net yield of 11% on the current gross income.
