Business park bought for £13.7m
Cording Real Estate Group, the Northern European real estate investment management firm, has sold Tyseley Business Park in Birmingham for £13.7m.
A private client of AHBN has bought the estate, which has five units totalling 350,558 sq ft.
The deal reflects a net initial yield of 6.75%.
Tyseley Business Park is the first asset to be sold from a portfolio of six UK industrial estates, which Cording acquired in March 2015 for £51m, reflecting a net initial yield of 9.25%. It said it has no current plans to sell the other five estates, which are located in Wolverhampton, West Sussex, Wakefield and two in Greater Manchester.
Mark Millar, head of UK and investment at Cording, said: “We have taken advantage of the continued investor demand for multi-let industrial estates to sell one of the assets in the portfolio. We acquired the portfolio as part of our income strategy.
“It has delivered strong returns through the opportunity to apply our asset management skills to extend leases, increase the income and offer a stabilised asset into the market”.
Tyseley Business Park is located at Rushey Lane between the Jaguar Land Rover plants at Castle Bromwich and Solihull
The units are let to three tenants on five leases, producing a total passing rent of £988,655 per annum.
