Henry Boot makes £5.8m acquisition
Sheffield-headquartered construction business, Henry Boot has purchased a multi-let industrial estate on the edge of Manchester city centre for £5.8m.
The deal by the group’s property development business HBD reflects a net initial yield of 4.1% on the 26,900 sq ft City Court industrial estate on Poland street in the Ancoats area of the city. It is the latest acquisition for HBD in the North West, with the firm having recently acquired Allied Business Centre at West Pimbo Industrial Estate in Skelmersdale alonsgide a key site in Manchester’s St Johns district.
The property is currently fully let to eight tenants, including Ticketmaster UK and Sky Telecommunications Services, with a low average rent per square foot of under £10, offering good rental growth and asset management opportunities.
The group has also announced that having acquired the site from Urban Splash and Pears Group, in the medium term it will explore “the opportunities for a significant urban residential development”.
Ed Hutchinson, managing director of HBD, said: “City Court is the latest in a series of strategic acquisitions in 2021 for Henry Boot. The property is situated on a 1.3-acre site which forms part of the Ancoats and New Islington Neighbourhood Development Framework presenting an opportunity for future urban residential development.”
The acquisition will be retained in the group’s investment portfolio and forms a part of Henry Boot’s core strategy of targeting industrial and logistics, residential and urban development schemes.