Industrial estates sold in £2.2m deal

PROPERTY company Harris Lamb has sold two industrial estates in the West Midlands for more than £2.2m.

Expressway Industrial Estate in Birmingham, and units 8-12 on the Cleton Business Park, in Tipton, have been sold to a private pension fund and Kindale Enterprises LLP respectively.

Harris Lamb brokered the deal, worth a total of £2,230,500, for CBRE Global Investors.

Alex Eagleton, of Harris Lamb’s Commercial Agency team, said both estates had attracted a great deal of interest from potential buyers.

A popular multi-let estate, Expressway Industrial Estate in Bracebridge Street comprised of three units totaling approximately 16,600 sq ft, with a passing rent of £70,550 a year.

Mr Eagleton said: “As a freehold investment located in a well-established commercial area, the opportunity to purchase Expressway was very well received, particularly due its reversionary rent, eventually going to two rounds of bids with interested parties and exceeding the asking price of £808,275.

“The final purchase price of £960,000 represents a 6.95% net initial yield.”

Cleton Business Park, on Cleton Street is located close to junction one of the M5 at West Bromwich and comprises five units with a combined floor space of around 35,150 sq ft.

Let to established tenants including Eos Works and Kuehne + Nagel, the site also provided asset management opportunities, which maximized its investment potential, something Kindale was keen to capitalise on.

Harris Lamb’s eventual sale price of £1,270,500 represented an 8.95% yield.

Mr Eagleton there had been a surge in deals activity in the weeks leading up to the deals.

“It has been an incredibly busy time with a number of buyers being keen to invest in opportunities to own premises in the Midlands. It’s great to see the region being put so firmly on the map,” he said.

“Reports of investors backing away from making such decisions (following) the Referendum decision seem to have so far been unfounded.”