Brockton Capital and Dunedin Property have completed the joint sale of six regional industrial estates to Cording Real Estate. The asset manager paid £51m for the portfolio.
Spread mainly across the Midlands and the north and south of England, the sites contain a total of more than one-and-a-half million square feet of multi-let industrial space, reportedly generating around £5m a year in rent.
The six sites are:
- The Kayley Industrial Estate at Ashton-under-Lyne, Greater Manchester. Next to the M60 motorway, 16 per cent of the estate’s 229,075 sq ft is currently vacant.
- Tyseley, Birmingham. Situated south-east of the city centre in an area dominated by car manufacturing industries, the estate has 305,706 sq ft of space, ranging from 26,500 to 163,700 sq ft. All five units are let.
- Lineside Industrial Estate, Littlehampton, West Sussex. Located next to a railway station, supermarket and retail park, the estate has a total of 207,500 sq ft of space spread across 28 units. Four of the buildings — ranging from 2,900 to 22,000 sq ft — are empty. There is also has a 0.8-acre vacant site with development potential.
- Greens Industrial Park at Wakefield, Yorkshire. The 351,000 sq ft estate is in the centre of the town. Totalling 351,000 sq ft, individual units range from 500 to 35,000 sq ft. Just under a quarter of the site is currently vacant.
- Hindley Green Business Park, Wigan, Greater Manchester. The estate has six existing buildings, ranging from 37,500 to 174,000 sq ft, with 18 per cent of the units still available. In addition to the existing 354,000 sq ft of space it also contains a four-acre development site.
- Oxford Street Industrial Estate at Wolverhampton, West Midlands. With unit sizes ranging from 5,000 to 22,500 sq ft, the 115,000 sq ft site is located next to an M6 motorway feeder road. It is fully occupied.
“This portfolio is a good example of the type of investment we like to target for our income strategy,” commented Mark Millar, head of portfolio management at London-headquartered Cording.
“It has excellent fundamentals with a diversified and sustainable income stream and geographic spread and offered us the opportunity to apply our asset management expertise to lease vacant space, increase the income and develop on the vacant sites.”
Through its eight international offices, the Cording Real Estate Group invests and manages around £1.7bn in assets for its 76 clients. Its current focus is on property in the UK, Germany and Scandinavia.
