A BIRMINGHAM business park has been bought by a UK and continental European real estate investor in a £23m deal.
Hansteen Property Unit Trust, part-owned and managed by Hansteen Holdings, has acquired Saltley Business Park north of the city centre for £23.285m from LPA Receivers, acting for Lloyds Banking Group.
The deal represented a net initial yield of 9.62%, Hansteen said in a statement.
The industrial estate comprises 1.078m sq ft across 22 units on approximately 47 acres of land close to the M6.
It currently produces £2.35m p.a., with eight vacant units, equating to 30% vacancy by area.
The average unexpired lease term is just over three years to expiry and 2.6 years to break options.
Hansteen added: “The acquisition presents a number of opportunities for adding value, by letting vacant units, re-gearing leases with existing tenants, upgrading and refurbishing units and reorganisation of underused car parking space.
“This deal follows the £27.7m acquisition for HPUT, of The Treforest Industrial Estate near Cardiff, from SEGRO, announced on December 24.
“HPUT, established in 2009, now has a £82.5m portfolio. The fund is 33% owned and managed by Hansteen.”
Joint chief executive Ian Watson added: “With these two recent acquisitions, we have invested over £80m for the fund in 2010.
“These are properties where we can use our expertise in intensive management to add real value.”
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