RO purchases prime industrial site in Hemel Hempstead

The RO Group is delighted to announce that it has acquired Unit 1 Cherry Trees Court, a freehold storage and distribution warehouse in Hemel Hempstead, for £1.82m from Medway Council. The property was secured at auction and is let to national distributor Bobby’s Foods Limited.

Located on Boundary Way, within the well-established Maylands industrial district to the east of Hemel Hempstead, the 7,684 sq. ft. warehouse sits on a 1.09-acre site with a very low site cover of 17.5%. Purpose-built for Bobby’s Foods, the site serves as the company’s key North London distribution centre. The tenant has occupied the site on a long term lease with current rent passing of £13.79 per sqft with a rent review in 2026 and lease expiry in 2031.

Founded in 1972, Bobby’s Foods has grown into one of the UK’s leading distributors of snacks, confectionery and frozen goods, serving over 20,000 local stores from 11 regional depots across the country. Its longstanding occupation of the property reinforces the site’s long term income generating value to the portfolio.  

Cherry Trees Court comprises a mix of warehouse, ground and first-floor office space, multiple loading bays, ancillary accommodation, and dedicated loading, parking, and access areas. Positioned just off the M1 motorway, the site benefits from excellent transport connectivity.

The acquisition reflects the RO Group’s strategy of buying properties in key regional areas that offer strong development potential. Hemel Hempstead has seen strong growth in industrial rents in recent years, underpinned by significant occupier demand and limited supply. Current rents in the area have reached up to £22 per sq. ft. for new builds and £19.50 per sq. ft. for refurbished units, highlighting the potential for value uplift.

Nick Cashmore, Investment Director, the RO commented:

“We are delighted to have invested in one of Hertfordshire’s most established industrial locations. The prime site offers strong fundamentals and supports our long-term strategy of building a resilient and income-generating portfolio with future upside potential.

“We were attracted to this site by the strength of the location, the reversionary potential with a rent review in 2026 and the very low site cover of 17.5% offering excellent future development prospects.

“The site benefits from excellent connectivity given its close proximity to the M1, making it an ideal distribution hub for Bobby’s Foods’ North London operations. With a growing base of national and regional occupiers continuing to drive demand in the area, we anticipate significant long-term value creation.

“We continue to seek regional opportunities similar to Cherry Trees Court, with a particular focus on well-connected sites with the scope for future development and strong demand.”

The RO was advised by Aurum Real Estate and Womble Bond Dickinson.