Industrial estates sold in £60m property deal

SIX industrial estates across the West Midlands have changed hands as part of a £60m deal.
 
AIM-listed property firm Hansteen has bought 32 sites across the UK from The Industrial Trust, partly funded with a loan from the Royal Bank of Scotland.
 
In the West Midlands the portfolio comprises:  Barracks Road Industrial Estate, Stourport; Kidderminster Trade Park, Kidderminster; Ringway Industrial Estate, Lichfield; Stringes Close, Willenhall; Bilston Road Industrial Estate, Wolverhampton; and Waterfall Trading Estate, Cradley Heath.

The six sites account for around 10% of the deal value. The portfolio has 1.6 million sq ft, an annual rent roll of £6.1m and a vacancy rate of 16%. The acquisition, due to complete on January 31, will show a net initial yield of 10.1%.
 
Mark Ovens of Hansteen, said: “The portfolio is highly compatible with our intensive management approach and the team’s experience across the UK.
 
“It has strong fundamentals with a great opportunity to add value through improving occupancy and imposing our management approach via our network of regionally based asset managers.”
 
Knight Frank acted for The Industrial Trust.

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