“REAL value” will be added to a West Midlands business park according to the property investment group which bought it in a £23m deal.
Hansteen Holdings, which owns 33% of and manages the Hansteen Property Unit Trust, announced this week that it acquired Saltley Business Park, north of Birmingham city centre.
Hansteen paid £23.285m for the 47-acre park from LPA Receivers who were acting for Lloyds Banking Group, representing a net initial yield of 9.62%.
The industrial estate comprises 1.078m sq ft across 22 units, eight of which are vacant, on approximately 47 acres of land close to the M6, currently producing £2.35m p.a.
A company statement said: “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.”
Hansteen Property Unit Trust was established in 2009 and now has a portfolio worth £82.5m.
This deal follows the Trust’s £27.7m acquisition of The Treforest Industrial Estate near Cardiff, from SEGRO, which was announced just before Christmas.
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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