£5.8m industrial estate acquired by investment venture

INVESTMENT companies Black Rock and Canmoor have acquired a Leeds industrial estate in a £5.82m property deal.

Wellington Road Industrial Estate, to the west of Leeds city centre, is a multi-let industrial park, with tenants including Pendragon and Royal Mail. 11% of the park is vacant.

Global property consultancy Knight Frank has advised on the Leeds agreement, and Savills advised the purchaser.

CBRE Global Investors, advised by the Leeds office of Knight Frank, sold the 103,545 sq ft Wellington Road Industrial Estate.

The deal reflects a capital value of £56 per sq ft and a net initial yield of 6.5%.

Rebecca Farnsworth, investment partner at Knight Frank in Leeds said: “The region lacks many multi-let industrial opportunities of any significant lot size and this sale attracted strong interest.

“With yields ever strengthening in the South East, we are continuing to see increasing demand from investors into the Yorkshire region seeking greater returns.”

Simon Lister, investment director at Savills, added: “With an average unexpired lease term of 24 years and significant asset management opportunities to improve the running yield, our client will be able to drive the performance of this asset.

“It is one of very few industrial estates under single ownership in the area and there may also be potential for higher value uses such as retail or residential in the longer term, subject to the necessary consents.”