Stakehill Industrial Estate up for grabs for £44.25m
CEG has put its 680,000sq ft warehouse and distribution facility at Stakehill Industrial Estate in Middleton, Greater Manchester up for sale at an asking price of £44.25m, reflecting a net initial yield of 6.75%.
WHR Property Consultants and Savills have been retained as the joint agents.
CEG acquired Stakehill on behalf of investors in 2012 and its ownership represents one of the largest industrial parks in the North West.
Paul Richardson, CEG’s investment manager for the North, said:“When Stakehill was acquired five years ago, we were attracted by the 100% prime location and also the potential of the modern buildings.
“Together with the Council and the Rochdale Development Agency, we have repositioned Stakehill into the successful and vibrant institutional quality investment that it now is. The estate now has enormous potential for rental performance as a result of the rental values that have been established.”
Dan Crossley, partner at WHR Property Consultants, said: “The North West industrial market has continued to strengthen both from an occupational and investment viewpoint, even post-Brexit.
“With very little stock available, genuinely prime opportunities have been extremely scarce.
“Now that Stakehill has been successfully repositioned, it is now firmly established as one of the North West’s premier industrial locations alongside Trafford Park but is arguably more attractive due to its lower-cost advantage.
“Due to the quality of the accommodation at Stakehill and the almost non-existent supply of alternatives, the Estate offers unrivalled potential for future rental growth.”
Jenna McIntyre, CEG’s acquisitions manager, added: “We believe that Stakehill now provides a significant cornerstone asset of institutional quality, with the ability to potentially increase overall ownership through acquiring nearby assets also located on the estate.
“In addition to the active management and improvement strategy implemented at Stakehill, CEG manages a number of thriving assets across a 2.5 million sq ft North West portfolio, with large scale refurbishment projects currently underway at Altrincham Business Park in South Manchester, Atlantic House in Warrington, Exchange Station in Liverpool, Jackson House in Sale and 196 Deansgate in Manchester City Centre.”