Industrial REIT has spent £21m on four multi-let industrial estates.
The estates, in Boston, Barnsley, Leeds and Stockton on Tees, total 260,000 sq ft and generate £1.25m in rent, reflecting a net initial yield of 5.7%.
The transactions take the REIT, formerly known as Stenprop, to 7.1m sq ft of space across 105 estates.
The REIT bought the Haven Business Centre in Boston, Lincolnshire, for £4m, reflecting a net initial yield of 7.1% and a capital value of £69 per sq ft. The property is 100% occupied and comprises 58,148 sq ft of MLI space across 22 units, generating annual rent of £300,000.
Twibell Street Trade Park in Barnsley, South Yorkshire, was acquired for £5.85m, reflecting a NIY of 5.25%. The purpose-built industrial estate totals 54,978 sq ft across five units and is 100% occupied, generating annual rent of £327,000.
Astra Park in Leeds was bought for £6.7m, reflecting a NIY of 4.8% and a capital value of £93 per sq ft. Its 72,000 sq ft is 100% occupied and generates rent of £340,000.
And Units 1-12, Primrose Hill Industrial Estate in Stockton-on-Tees, County Durham, were acquired for £4.3m, reflecting a 6.2% NIY and a capital value of £57 per sq ft. The property totals 75,270 sq ft across 13 units and generates rent of £286,172.
Will Lutton, head of investment, said: “These properties, which take our MLI portfolio past 7m sq ft, are fully aligned with our objective of investing in purpose-built MLI estates let off low passing rents and located in densely populated areas which are witnessing strong economic activity. The regional MLI market is characterised by record low vacancy and strong tenant demand, demonstrated by the 100% occupancy levels across these assets. In addition to a mix of near and more medium-term asset management opportunities, we are confident of capitalising on current demand to drive rents through our Industrials Hive operating platform.”
Industrials REIT was represented by HSM, CPP and Ryden on these transactions.
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