Birkenhead business park offloaded for £10.8m
A Birkenhead business park site has been acquired by Industrials REIT, a UK multi-let industrial property company.
The acquisition of Junction 1 Business Park is one of three multi-let estates (MLI) acquired by the listed company as part of its strategy to become a fully focused MLI REIT by 31 March 2022.
The three estates, in Birkenhead, Coatbridge, and Stockton on Tees, have been purchased in separate transactions for a total consideration of £18m, reflecting a blended net initial yield of 7.1% and a capital value of £69 per sq ft.
Junction 1 Business Park, Birkenhead has been acquired from listed property company for £10.8m.
The 167,735 sq ft, 26-unit estate is 100% let and generates a total annual passing rent of £822,151, which equates to a low average rent of £4.90 per sq ft.
Junction 1 Business Park is the dominant commercial centre in The Wirral and has witnessed strong occupancy and 100% rent collection levels since the start of 2020, “reflecting both high levels of demand and take up in the region and a shortage of MLI product.”
Industrials REIT’s MLI portfolio now accounts for 92% of total assets. The company has now acquired 10 estates for £55m since 1 April 2021.
Will Lutton, Head of Investment at Industrials REIT, said: “These off-market acquisitions, which offer a mix of strong day one income and the opportunity to drive rents through our Industrials Hive operating platform, maintain the progress we have made this financial year delivering on our 100% MLI goal.
“All three properties offer low passing rents and attractive pricing on a per sq ft basis. With replacement costs remaining significantly below development costs and a structural shift in demand driven by growth in eCommerce, we are continuing to see an imbalance between demand and supply which is driving rental growth across our portfolio.”
Gerald Eve advised on the sale of Junction 1 Business Park.
