Four North West industrial sites snapped up for nearly £20m
Four industrial sites across the North West have been acquired by Schroder Real Estate Investment Trust for £19.85m.
The deal reflects a net initial yield of 6.9% and a capital value of £53 per sq ft.
The acquired sites include Valley Road Industrial Estate, Birkenhead for £11.4m.
Unconditional contracts have been exchanged to acquire Valley Road, a 10 acre estate comprising 190,000 sq ft of warehouse space and ancillary offices across 15 units, of which 41% have been recently refurbished.
The estate is let to seven tenants generating a combined rent of £830,000 per annum.
Coral Products’ Haydock Industrial Estate has also been acquired for £4.9m. Coral, which was recently acquired by a subsidiary of the Canada-based IPL Plastics Group, occupy the entire site on a lease expiring in January 2031, with a tenant break in 2026, at a rent of £340,000 per annum.
Schroder has also acquired two assets let to Newfield Fabrications, Sandbach, Cheshire for a combined £3.6m.
The first asset comprises a 77,880 sq ft manufacturing and distribution facility on a 4.1 acre site, let on a 13.9 year term at a rent of £247,000 per annum and the second asset comprises an 8,000 sq ft industrial unit with main road frontage, also let for 13.9 years at a rent of £36,000 per annum.
The portfolio acquisition, to be funded by drawing on the revolving credit facility, generates additional rent of £1.45m per annum and the acquisition increases SREIT’s industrial weighting from 40.2% to 42.7%, with the majority of this by value comprising good quality multi-let estates.
Following completion, SREIT’s net loan to value, adopting the last published independent valuation, will be 34.7%, with cash of £11.8m and remaining undrawn loan facilities totalling £6.8m.
