Trade centre unit acquired to boost growing portfolio
Cordatus Property Trust has acquired a Selco Trade Centre unit, for £3m, in a prime location in Wythenshawe, Manchester, as its latest addition to the fund.
The Cordatus Property Trust is a programmatic venture between CBRE Global Investment Partners and Cordatus Real Estate.
Cordatus purchased the unit on Timpson Road, Wythenshawe, from IGP Investment. The £3m price reflects a net initial yield of approximately 6.9%.
In line with its development of a ‘best ideas’ portfolio spanning across the UK, Cordatus has acquired the long leasehold on the Wythenshawe site which is let to Selco with nearly eight years left on the lease.
It trades as a successful trade counter warehouse for building materials trade and business customers.
Andrew Murray, of Cordatus, said: “This is a very well-located site with a good tenant in one of the most established estates in South Manchester.
“The purchase adds another well-let asset with an attractive income stream and good growth prospects to our expanding portfolio and we see a real opportunity here.
“We are continuing to apply proven investment knowledge to deliver above-market returns and are on the lookout for more assets.”
The lease involves five-yearly, rent reviews. The property is a modern detached unit comprising approximately 36,328 sq ft with a 50-space car park.
Ereira Mendoza and B8 Real Estate acted for Cordatus. Whitmarsh Holt Young acted for the vendor.
Cordatus and CBRE GIP launched the trust in December 2015 and had an initial funding of £150m.
The trust has now deployed approximatelhy £178m and continues to seek opportunities to invest in line with its investment strategy.
The vehicle is primarily targeting investment opportunities in strong micro locations, primarily in UK regional markets, with typical lot sizes of between £3m to £15m, to generate above-market income distribution.