Sheffield industrial estate units sold by BNP Paribas for £4.7m

PROPERTY firm Knight Frank Investment Management has acquired Don Valley industrial estate units for £4.74m on behalf of clients.

Joint fixed charge receivers (non-licensed insolvency practitioners) J Pitt and B Moon, advised by BNP Paribas Real Estate, have sold Units 1-9 President Way, President Park, Sheffield, totalling 85,200 sq ft, to a client of Knight Frank Investment Management.

The four-unit Industrial investment produces an annual rent of £370,592.50 and the transaction represents a net initial yield of 7.39%.

This estate was originally developed for Three Star Engineering in the 1990’s and is now occupied by high calibre occupiers including Ancon, Baldwin & Francis and Sheffield NHS Care Trust with an average lease term of 4.6 years remaining.

Guy Cooke, director at BNP Paribas Real Estate’s Sheffield office said: “This sale further illustrates the strength of the Industrial property market and is the most significant Investment sale of its kind in the Don Valley in recent times.

“We experienced strong interest from Institutional investors given the quality of the tenant line up, the popular size of units which appeal to occupiers, and the undoubted location within Sheffield’s engineering heartland.”

John Styles, head of fund management at KFIM said: “The purchase provides our client with an attractive income yield with limited non-recoverable expenditure and good rental growth prospects. The demand/supply balance in the Sheffield industrial market is in favour of investors over the medium term.”

Knight Frank represented Knight Frank Investment Management.