Investor eyes more industrial deals after £6m estate purchase
A property group is looking for more sites around Birmingham after agreeing the £6.2m purchase of a Stourbridge industrial estate.
Stenprop has bought Gainsborough Trading Estate in an off-market transaction from a private investor. The deal reflects a net initial yield of 9.1%.
Gainsborough Trading Estate, Stourbridge
Julian Carey, Stenprop’s property director, said: “We are excited about rolling our Industrials operating platform out in Stourbridge and hope to acquire more estates in the area on the back of it”.
The estate in Rufford Road has 37 units – of which only one is vacant – and the 162,000 sq ft estate generates annual rent of £604,000.
Stenprop is moving towards becoming a specialised UK multi-let industrial (MLI) property company. MLI assets now account for 41% of the company’s portfolio, which it expects to rise to 60% in a year’s time. It intends to sell all of its non-MLI assets over the next few years and utilise the sale proceeds to build a focused UK MLI business.
Carey added: “This acquisition increases our multi-let industrial portfolio to more than £250m and around 4m sq ft.
“This estate provides a mix of small industrial units of different ages and specifications in a strong location. We have long been fans of investing in and around Birmingham, and the excellent demand-supply dynamics in the area are clear to see from the excellent letting history at Gainsborough Trading Estate.
