Commercial Mortgages Hilsea

The Hilsea commercial property market

Hilsea is the A3 northern gateway commercial corridor, the first commercial cluster a driver hits coming south off the M27 into Portsea Island. Hilsea Retail Park on London Road anchors the out-of-city retail park stock, a strong roster of national and regional Class E and drive-through tenants supporting attractive ground rent and Zone A retail park economics. Voyager Park on Portfield Road carries the live light industrial expansion piece, the recent Voyager Park scheme (Ref 25/01612/FUL) for new Class B2 light industrial and Class B8 storage accommodation supporting Solent corridor distribution lifts available freehold stock and refinance comparables across the corridor. Walton Road industrial estate sits just north of the Hilsea corridor with the recent Walton Road refurbishment (Ref 25/01478/FUL) for new Class B2 workshop and trade-counter units serving the Portsmouth defence supply chain. The combined cluster gives Hilsea one of the most active out-of-city commercial fabrics on Portsea Island.

Most Hilsea commercial mortgage deals run in the £400K to £3M facility bracket. Hilsea Retail Park investment stock currently prices at 6.5 to 8.0% pa at 60 to 70% LTV through Allica Bank, HTB, Shawbrook and Cambridge & Counties on let stock with strong-covenant tenant mixes. Drive-through F&B trading-business at the retail park edge prices 7.0 to 8.5% pa at 65 to 70% LTV through Cynergy Bank and HTB on operator EBITDA. Light industrial owner-occupier at Voyager Park and Walton Road prices 6.5 to 7.5% pa at 70 to 75% LTV through Allica Bank, HTB and YBS Commercial. Class B8 storage investment sits at 6.5 to 8.0% pa at 65 to 75% LTV through the same panel. Secondary London Road parade investment on the Hilsea side prices wider at 7.5 to 9.0% pa at 65 to 75% LTV via Together and InterBay Commercial.

HM Land Registry residential transactions in the PO2 and PO3 fringe support the commuter and family-housing demographic that anchors the retail park catchment. The PO3 terraced and semi-detached stock and the modest flatted supply around the corridor combine to give Hilsea Retail Park a stable resident and drive-by catchment supporting Class E retail and drive-through F&B trading. They are not direct commercial signals, but they back the underwriting assumptions on tenant covenant strength and footfall projections at the Hilsea Retail Park edge. Refinancing of maturing 5-year fixes from 2020 and 2021 is the dominant 2026 product flow across the corridor.

Active commercial property types in Hilsea

Lender appetite for Hilsea Retail Park, Voyager Park and corridor light industrial

Strong across the Hilsea corridor. Allica Bank runs an active South Coast book and routinely tops the shortlist on Voyager Park owner-occupier light industrial and Hilsea Retail Park let investment stock at 6.5 to 7.5% pa at 70 to 75% LTV. HTB covers larger ticket retail park investment, drive-through F&B trading-business and B8 storage investment at 65 to 75% LTV. Shawbrook takes Hilsea Retail Park investment and value-add bridge-to-let on Class E reconfiguration deals, particularly where capex programmes feed into the refinance pipeline. YBS Commercial covers owner-occupier light industrial at Voyager Park and Walton Road at the tighter end of pricing for strong-covenant SME borrowers. Cambridge & Counties selectively covers retail park investment with stable tenant mixes. Cynergy Bank runs the drive-through F&B trading-business piece on operator EBITDA. Paragon takes selected portfolio investment combining London Road parade and Hilsea Retail Park exposure. Together covers the wider secondary London Road parade and value-end semi-commercial stock. Hampshire Trust Bank is locally headquartered in Hampshire and runs an active Portsmouth book covering retail park investment and light industrial owner-occupier across the corridor. Allica, HTB, Paragon, Together, YBS Commercial and Cambridge & Counties all take selected Hilsea deals in the £400K to £3M bracket. Refinancing on a stabilised Hilsea Retail Park asset typically prices 6.5 to 8.0% pa at 65 to 70% LTV. Commercial mortgages are unregulated lending and fall outside the FCA regulated mortgage perimeter, we do not hold FCA authorisation because the products we arrange are unregulated.