One of the busiest property investment & development companies in South Wales, Richard Hayward Properties has finished Q3 2015 with a sale and two strategic purchases as it positions itself for a period of major growth.
The Smurfit Kappa Building on the Prince of Wales Industrial Estate in Abercarn, about 10 miles north of Newport in the Ebbw Valley, has been acquired in a £1.8 million deal reflecting a gross yield of 13.75%.
The 131,228 sq ft building sits on a 13.9 acre, self-contained site adjacent to the A467, which provides direct access to the M4 and Newport. Smurfit Kappa UK, one of the leading paper-based packaging providers in the world, has been in occupation since it was built in the 1970. Its current lease expires in 2017. The building covers just 22% of the site, with potential for expansion or additional development.
In addition RHP has purchased a property in Baldwins Cresent at Crymlyn Burrows near the recently opened Swansea University campus in the Fabian Way – Swansea Gateway area, for £185,000. Compass House is both a strategic and investment buy as the site provides improved access to RHP’s 45-acre regeneration site, which forms part of the former Visteon works. RHP has already developed an 180,000 sq ft HQ and bespoke production facility for Trojan Electronics in this area and is working up plans for further development. The Compass House building will be converted to student housing to capitalise on the new University campus.
At the same time, RHP has sold the 60,000 sq ft Gateway building in Abercynon, just north of Pontypridd, to Trade Centre Wales for £1.5 million. Standing on an high profile 7.27-acre site next to the A470, TCW is to change the use to a car sales showroom to open in early 2016.
These deals have taken place at a time when RHP has also been involved in a large number of high profile developments across South Wales including the conversion of Olympia House into 60+ residential units for the private rental market and the new Premier Inn redevelopment, both in Newport, and the restoration of the historic Beachcliff building in Penarth into luxury residential. RHP has remained true to the heart of its business as a long-term holder of property, selling only when the time is right.
Principal of RHP, Richard Hayward said: “All of this activity has been strategically planned. RHP is very much a forward-looking business. We have held onto property throughout the recession and, as a result, have a lot of equity, which is key to the success of the next phase of activity. We ambitious expansion plans and the finances in place to support them. We have a number of deals in the pipeline and are actively looking for more investment, development and business opportunities where we can use its expertise and imaginative approach to unlock value and maximise returns.”