Lymington Precision Engineers, Marsh Lane, Lymington, Hampshire

Description

Well located freehold industrial investment with future redevelopment potential. Comprising 8 purpose-built industrial units extending to 8,200.69 sq m (88,272 sq ft) on a site of approximately 2.92 acres (1.18 hectares). Entirely let to Lymington Precision Engineers Co. Limited. Future redevelopment and asset management opportunity subject to consents. Located in an affluent coastal town and benefiting from approximately 100m of road frontage. VAT is applicable.

Accommodation

8 industrial buildings, some with ancillary office accommodation to the first floor. Large car park/yard area in the centre of the site and a smaller car park towards the west. Total site area approximately 2.92 acres (1.18 hectares).

Location

Lymington is situated on the southern edge of the New Forest, approximately 18 miles south west of Southampton and 20 miles east of Bournemouth. The town is served by the A337, providing access to the M27 at Junction 1 approximately 11 miles to the north. Lymington Town and Lymington Pier railway stations are both approximately 1 mile away. The property is on the east side of Marsh Lane, immediately north of Lymington town centre, close to its junction with East Hill, within an established industrial, employment and residential area. Nearby occupiers include Kwik Fit, Majestic Wine, Meridian Electrical and various industrial businesses.

Tenure / Property Information

Investment Analysis

The property is a substantial freehold industrial investment comprising 8 units extending to 8,200.69 sq m (88,272 sq ft) on approximately 2.92 acres. It is entirely let to Lymington Precision Engineers Co. Limited on a new 15-year lease with CPI-linked reviews every fifth year and a stated 2–4% p.a. compounded collar and cap. The £5.5M+ guide equates to approximately £62 per sq ft before VAT, but no passing rent, investment comparable or formal valuation evidence is supplied, so GDV and investment value cannot be established. Future redevelopment is only subject to consents. VAT applies and additional seller or third-party charges may arise.

Investment Snapshot

Strategy Recommendation

Consider only as a commercial income investment after verifying the executed lease, passing rent, tenant covenant, VAT treatment, all acquisition charges and the redevelopment/planning position. Do not rely on the guide alone as evidence of value.

Works Required

No specific physical defects or refurbishment requirements are evidenced. The opportunity is primarily an income investment with potential future redevelopment or asset management, subject to the necessary consents. Any works allowance cannot be supported from the supplied evidence.

Rental & Market Context

Potential BRRR Position

A BRRR assessment cannot be quantified because the passing rent, market value/GDV, works budget, acquisition costs and refinancing terms are not supplied. The long lease may provide income visibility, but refinancing depends on the rent, tenant covenant, valuation, lender policy and applicable VAT or transaction costs.

Buy-to-Let Analysis

The property is already entirely let on a new 15-year lease, with CPI-linked rent reviews subject to the stated 2–4% compounded collar and cap. However, the passing rent is not provided, so rental income, yield, affordability and income cover cannot be calculated. The single-occupier structure and tenant covenant require due diligence.

Flip Analysis

A flip appraisal is unsupported. No comparable sales, formal GDV, refurbishment budget, selling costs or planning position are provided. The stated redevelopment potential is expressly subject to consents, so it cannot be treated as an established resale uplift.

Investor Risks & Due Diligence

• Passing rent and current investment yield are not supplied.

• The property is entirely let to one tenant, creating single-occupier exposure.

• VAT applies and additional seller or third-party charges may be payable.

• Future redevelopment and asset management potential are subject to consents.

• Tenant covenant, lease terms and compliance obligations require verification before bidding.

• No refurbishment budget, formal valuation or comparable evidence is provided.

Recommendation

Consider only as a commercial income investment after verifying the executed lease, passing rent, tenant covenant, VAT treatment, all acquisition charges and the redevelopment/planning position. Do not rely on the guide alone as evidence of value.

Strategy Rating

Analysis Confidence

The asset description, tenure, occupancy, lease structure, scale and guide are supplied, but passing rent, comparable evidence, formal valuation, costs, EPC, planning information and lease documentation are absent.