Matthew Neville

London industrial property company makes four acquisitions totalling £21m

Industrials REIT, the London headquartered multi-let industrial property company, has announced that it has acquired four multi-let industrial estates, in Boston, Barnsley, Leeds and Stockton on Tees, for a total consideration of £20.86m.

The purchase price reflects a blended net initial yield (NIY) of 5.7 per cent and an average capital value of £80 per sq ft. Totalling 260,000 sq ft, the assets generate £1.25m of annualised rent which equates to a low average passing rent of £4.82 psf.

Following these transactions, Industrials REIT’s MLI portfolio now comprises 105 estates across 7.1 million sq ft of space. The individual assets are:

  • Haven Business Centre, Boston, acquired for £4m, reflecting a NIY of 7.1 per cent and a capital value of £69 psf.
  • Twibell Street Trade Park, Barnsley, acquired for £5.85m, reflecting a NIY of 5.25 per cent.
  • Astra Park, Leeds, acquired for £6.7m, reflecting a NIY of 4.8 per cent and a capital value of £93 psf.
  • Units 1-12, Primrose Hill Industrial Estate, Stockton on Tees, acquired for £4.31m, reflecting a 6.2 per cent NIY and a capital value of £57 per sq ft.

Will Lutton, head of investment at Industrials REIT, commented: “These properties, which take our MLI portfolio past seven million 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 per cent 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.”

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