LANGTREE CASE STUDY
Lyntown Trading Estate
How Langtree delivered a 48% rental uplift and strengthened tenant covenants at Lyntown Trading Estate.
Increased capital value
Lyntown Trading Estate is a 262,000 sq ft multi-let industrial site with 26 units ranging from 3,000 to 80,000 sq ft.
At the time of Langtree’s appointment, the estate was 86% occupied, but rental values were significantly below market rates at an average of £3.45 per sq ft, and tenant covenants required diversifying to mitigate long-term investment risk.
The estate’s branding and external presentation were inconsistent, whilst the absence of a structured service charge impacted overall site maintenance.
Langtree identified the opportunity to increase rental performance, enhance tenant security, and improve site quality through a carefully structured asset management plan.
Overview
Assessing the assets
A review of the site’s financial and operational performance by the Asset Management Team at Langtree , highlighted the need for a tailored refurbishment and tenant repositioning strategy.
While occupancy levels were strong, lease structures and outdated rental agreements were preventing the estate from achieving its full income potential.
The capital value stood at £13.7m, with an ERV of £940,000 and passing rent at £814,000 per annum.
OUR APPROACH
Improvement initiatives
A £1.2m refurbishment programme was undertaken, including a full estate rebrand and external improvements to create a more professional, uniform, high-quality industrial offering.
Internal refurbishments were carried out on void units to improve the standard of accommodation and increase the value.
A new service charge regime was implemented with full co-operation of the occupiers to ensure a high standard of presentation would be maintained going forward.
The refurbished accommodation attracted a more diverse, financially viable range of businesses to the estate.
+£1.2m
Refurbishment programme
+48%
Rental uplift
+33%
Capital value increase
+26%
Net capital value growth
Results
Realising the impact
By 2023, Lyntown Trading Estate had been transformed into an attractive, high quality, institutional asset.
Passing rent increased to £977,000 per annum, a 17% uplift, while ERV grew from £940,000 to £1.8m.
The average rental per sq ft rose from £3.45 to £6.61, demonstrating the estate’s improved market positioning representing a 48% increase in potential rental income.
Capital value increased to £20.3m, a 33% uplift, while net capital value grew by 26%.
This strategic approach effectively positioned the estate for long-term growth.
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