Industrial and Warehouse Commercial Mortgages Bournemouth

Underwriting a Bournemouth industrial commercial mortgage

The BCP industrial estate is dominated by four anchors. Aviation Park sits adjacent to Bournemouth Airport on c. 1,800 acres of BAA-led estate, technically within Christchurch but treated by the market as the eastern Bournemouth industrial anchor. Mannings Heath Industrial Estate in Poole runs trade-counter, distribution and light-manufacturing occupation immediately west of Bournemouth. Bournemouth Airport Business Park picks up B1 office and tech-park occupation adjacent to the airport runway. Holton Heath Trading Park further west into Poole runs the larger-shed B8 logistics stock. Compared with the larger Midlands and northern industrial markets, the BCP industrial base is relatively small, this is a south-coast retail-and-tourism economy first and an industrial economy second, but the stock that exists prices well because supply is tight.

Investment underwriting tests ICR at 130 to 150%, the lowest cover-test band of any commercial sector because lenders treat industrial as the most defensible asset class through the cycle. Tenant covenant, building age and specification drive pricing. Modern logistics shed with strong covenant prices materially better than mid-1990s Mannings Heath trade-counter stock; EPC is increasingly a credit signal on speculative new-build but remains less binding on industrial than on office.

Worked example: an Aviation Park trade-counter unit on a 10-year FRI to a national plumbing-merchant covenant, £1.85M valuation, £128K passing rent. ICR at 140% on a 7.0% pa stressed rate sizes the loan to roughly £1.30M, about 70% LTV. Lloyds, NatWest, Barclays and Santander compete on this profile at 6.5 to 7.25% pa. Worked example two: a Mannings Heath single-let workshop, owner-occupier purchase by the trading business, £625K, EBITDA cover sized at 1.5x. Routes to Allica Bank, Shawbrook or Cambridge & Counties at 7.5 to 8.25% pa on a 60 to 65% LTV.

For owner-occupier industrial purchases by the trading business, see the owner-occupier commercial mortgage page. Vacant industrial routes through bridge-to-let with refurbishment and re-let exit.

Finance structures for Bournemouth industrial

Investment underwrites on ICR. Owner-occupier underwrites on EBITDA. Larger sheds with development upside route through bridge or short-term commercial term with planning-driven uplift recognised at exit.

Lender appetite for Bournemouth industrial

Industrial is the most heavily competed commercial sector on the panel. <strong>Lloyds</strong>, <strong>NatWest</strong>, <strong>Barclays</strong> and <strong>Santander</strong> all run aggressive desks on prime Aviation Park and Holton Heath logistics investment, typically 6.0 to 7.25% pa at 65 to 75% LTV on national-covenant long-WAULT stock. The challenger desks, Allica Bank, <strong>Shawbrook</strong>, HTB, Cambridge & Counties, YBS Commercial and Aldermore, compete hard on Mannings Heath and BH17 mid-quality investment at 7.0 to 8.0% pa at 65 to 75% LTV. Owner-occupier industrial purchases by the trading business route to Allica Bank, <strong>Shawbrook</strong> and Cambridge & Counties at 7.0 to 7.75% pa on 60 to 70% LTV with EBITDA cover at 1.3 to 1.5x. <strong>InterBay Commercial</strong> and <strong>LendInvest</strong> take the harder cases (older stock, mid-covenant, secondary-pitch industrial yards) at 8.0 to 8.75% pa.