Schroder REIT buys £20m North West sheds portfolio

Schroder Real Estate Investment Trust has purchased a portfolio of four industrial assets in the north-west of England. The Valley Road Industrial Estate in Birkenhead, a manufacturing and recycling facility on Haydock Industrial Estate and two assets in Sandbach were bought for a combined £19.85m, reflecting a net initial yield of 6.9% and a capital value of £53 per sq ft. The acquisition, which the REIT will fund from a revolving credit facility, generates additional rent of £1.45m per annum. Valley Road Industrial Estate (pictured) – which comprises 190,000 sq ft of warehouse space and ancillary offices across 15 units – is let to seven tenants, generating a combined rent of £830,000 per year. Tenants include frozen food distribution production company KPFF, infrastructure group Balfour Beatty and and Park Retail, a gift and voucher distribution company. The weighted average unexpired lease term is 4.3 years to earliest termination and about 10% of the estate is vacant. In Haydock, the 98,551 sq ft manufacturing and recycling facility is leased to Coral Products, a plastics manufacturer, on a lease expiring in January 2031, with a tenant break in 2026. The two assets acquired in Sandbach are let to Newfield Fabrications, a steel fabricating business. The first comprises a 77,880 sq ft manufacturing and distribution facility, while the second is an 8,000 sq ft industrial unit. To send feedback, e-mail evelina.grecenko@eg.co.uk or tweet @EGPropertyNews Photo courtesy of FTI Consulting