Stenprop completes Wigan industrial acquisition
Stenprop has bought the Bradley Hall Trading Estate in Wigan from Himor Group for £20.6m.
The deal reflected a net initial yield of 6.43% and a capital value of £67.40 per sq ft on the MLI space and £8.95 per sq ft on the yard areas.
The property has 275,079 sq ft of terraced multi-let industrial units ranging from 344 sq ft to 28,896 sq ft, and 230,062 sq ft of income-producing yard areas.
Stenprop has bought the Bradley Hall Trading Estate in Wigan from Himor Group for £20.6m.
The deal reflected a net initial yield of 6.43% and a capital value of £67.40 per sq ft on the MLI space and £8.95 per sq ft on the yard areas.
The property has 275,079 sq ft of terraced multi-let industrial units ranging from 344 sq ft to 28,896 sq ft, and 230,062 sq ft of income-producing yard areas.
It is 100% let and generates a total annual passing rent of £1.4m, equating to an average rent of £4.61 per sq ft on the built units and £0.61 per sq ft on the yard areas.
This compares with average passing rent of £5.46 per sq ft on Stenprop’s 5.6m sq ft existing portfolio. Some 99% of rent due at the estate in H1 this year was collected.
Stenprop highlighted that the estate also offers the potential to grow income and value through asset management, with several lease events due in the near term, as well as potential development opportunities to increase the low site density.
The landlord has also been growing its presence in the North West, which it identified as one of the strongest performing industrial and logistics regions in recent years. This has been driven by a growing demand-supply imbalance, in particular for smaller SME multi-let units ranging between 1,000 and 20,000 sq ft.
Following the deal, the company’s MLI portfolio now accounts for 75% of its total portfolio.
Will Lutton, head of investment at Stenprop, said: “Located in one of the best-performing industrial regions of the UK, this acquisition fits well with our strategy of acquiring assets with strong day one income and the opportunity to add value using our management platform.
“We have already identified a range of asset management opportunities at the Bradley Hall Estate which we are confident will enable us to increase the rents significantly over time.”
B8 Real Estate advised Stenprop on the deal.
View more industrial deals in the Wigan area >>
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