Summit Property Completes New Bakery
Summit Property has completed the construction of a new 71,000 sq. ft. bakery for Browns the Master Bakers at Mitcham Road, Croydon. At the beginning of December, Browns moved from their two existing facilities at Croydon and Crawley into the brand new purpose-built unit at Mitcham Road.
Browns have taken a 35 year lease at an initial rent of £6.75 per sq. ft. and Summit forward sold the investment to Swedish Fund SPP, represented by Celexa and Strutt and Parker, to show a yield of 8%. Stiles Harold Williams acted for Summit Property.
Crispin Auden, Managing Director of Summit Property, said that the challenge had been to devise a package suitable for an investing institution, whilst providing the user with a bespoke facility. The solution in this case was to run two concurrent building contracts, both let to Bilfinger and Berger, allowing total co-ordination of the construction of the landlord’s shell building with the extremely complex tenant’s fit out. “It was very complicated, but we made it work for everybody” he said.