The Key Property Investments joint venture of St Modwen and Salhia Real Estate Co has sold Eastleigh Works.

UK: The Key Property Investments joint venture of developer St Modwen and Kuwait-based Salhia Real Estate Co has sold the 19 ha Eastleigh Works train maintenance and repair site to corporate pension fund clients of Savills Investment Management for £20·6m, a net initial yield of 8%.

The facility is predominantly let to Arlington Fleet Services. ‘Since acquiring the site in 2002, we have added significant value over the years, taking it from a vacant complex of redundant buildings to a fully occupied, well managed rail-orientated industrial estate’, said Nick Kay, Development Director at St Modwen, when the sale was announced on January 8. ‘

‘The purchase of Eastleigh Works is a strategic industrial land acquisition for our client with a recognised heritage of rail manufacture and maintenance’, added Lucy Winterburn, Director of Investment at Savills Investment Management. ‘We are delighted to have secured this opportunity and relish the medium term redevelopment opportunity that it presents.’

CBRE advised KPI on the asset and acted on the sale.