Progress Business Park in Croydon has been bought by Savills Investment Management in an £8.04million deal.
The modern, multi-let industrial estate, just off Purley Way, is let to 16 tenants and is ideally suited to small businesses.
Although average rents are £13.80 per sq ft, the latest letting on the estate was for in excess of £20 per sq ft, reflecting the current increases elsewhere in Croydon.
James Pearson, fund manager of Savills IM, said: “Our UK Income & Growth Fund seeks to acquire long-term income streams with growth potential.
“While over 60 per cent of the fund is in assets with long leases and either fixed or RPI-linked rental increases, we also target properties that offer potential for asset management to drive income growth and rates higher.
“The supply of industrial space within the M25 is diminishing while demand continues to increase.
“We believe this dynamic will drive rental growth in the coming years. The fund has deliberately grown its exposure to the industrial sector in the south-east region over the last to years to a current weighting of more than 30 per cent.”
Savills IM were advised by Whitmarsh Holt Young. Cortex Partners acted for the vendor Westbrook Partners.