Eleven industrial units on Birmingham estate sold for nearly £1m
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A sale price of just under £1m has been achieved for 11 units on an industrial estate in central Birmingham.
The properties on Klaxon Industrial Estate, off the main A41 Warwick Road in Tyseley, were sold for £950,000 to LWJ Estates, with contracts exchanged and completed within eight weeks.
The units, with a total space of around 49,000 sq ft on ground, first and second floor levels, are already bringing in rents of more than £95,000 a year, a yield of over 10% based on the sale price.
But it is estimated that this rental could easily grow to more than £122,000 a year when the estate is fully let, which would result in an increased yield for its new owners of nearly 13%.
Ryan Lynch, associate director of Siddall Jones, said that the off-market disposal had been arranged on behalf of a vendor who had owned the 11 units for more than 20 years.
Solicitors Hadgkiss Hughes and Beale advised the buyer, and Stocktons acted for the vendor.
Lynch said: “We are pleased to have arranged a sale that’s provided both the vendor with a very satisfactory price and the purchaser with attractive rental yields, and the prospect for a healthy yield increase.
“This deal shows that demands in industrial property market continue to be strong, with landlords looking for solid rental opportunities that still exist within the Birmingham marketplace.”