Stoke industrial estate bought
Sandyford Properties has bought an estate of 16 industrial units, on the edge of Fenton Industrial Estate in Stoke-on-Trent, called City Park for £3.46m.
The estate comprises of 16 units, and is 88,718sq ft in size. It is currently let to 18 occupiers in spaces that range from 1,759 sq ft up to 16,132 sq ft. The net initial yield that City Park achieves is 7.70%, but agreed recently renewed lease terms have risen to £4 per sq ft, an overall increase of 38%.
The development is fully let, across 18 occupiers, amongst whom are some long standing tenants, is in a convenient location near to the region’s key arterial transport routes.
GVA’s Adam Wildig said: “The shortage of quality industrial space in the market has been well documented in the media and North Staffordshire in particular , has seen high demand from occupiers in recent years. The purchase of City Park demonstrates Sandyford Properties’ continued targeting of quality multi-let industrial assets. Given the low site coverage, the estate offers a range of asset management opportunities which will only be enhanced further on completion of the refurbishment and development programme.”
The vendor in the sale, Pers Property, was represented by B8 Real Estate, whose John Burrows said: “The estate has a proven track record, with excellent tenant retention and improving rental levels. The strong level of interest generated by this sale demonstrates significant investor demand for secondary, multi-let estates which offer the ability to further enhance value through a refurbishment programme.”
Following its acquisition of the estate, Sandyford Properties is now managing a programme of refurbishment at City Park to further improve the quality of the offering and the experience of the tenants.
