Shrewsbury multi-let industrial estate snapped up
A fully-let industrial estate in Shrewsbury has been acquired for £2.9m.
The buyer, Stenprop, says the purchase of Greenwood Industrial Estate is in line with its “stated strategy to focus on UK multi-let industrial (MLI) property”.
The purchase from South Street Capital reflects a net initial yield of 6.7%.
The site comprises 30 units, totalling 44,611 sq ft of industrial space. The weighted average unexpired lease term is 3.7 years to lease expiries and 2.3 years to lease breaks. The average passing rent is £4.70/sq ft.
Julian Carey, group property director of Stenprop, said: “Greenwood is a purpose-built estate with an attractive mix of small units and low average rents. It is located in an area with very strong supply-demand dynamics and a number of the tenants have been in occupation for more than 20 years.
“We intend to make improvements to the estate through a programme of capital expenditure, which, we believe, will provide scope for rental growth, while the acquisition price of £66/sq ft reflects a significant discount to replacement cost”.
Stenprop was represented by JLL and the vendor was represented by Knight Frank.
