SREI : Schroder Real Estate Investment Trust to acquire Stacey Bushes industrial estate for £9.2m
Schroder Real Estate Investment Trust has exchanged contracts to acquire Stacey Bushes Industrial Estate, Milton Keynes, for £9.2m. The freehold property is a 213,536 square foot multi-let industrial estate, constructed in the 1980’s and recently refurbished, let to 12 tenants with an average unexpired lease term of 4.5 years (assuming all tenant breaks are exercised). The property currently produces a rent of £756k per annum, which represents an initial yield of 7.76%. However, there are currently eight unoccupied units, representing approximately 20% of the available area, which can be re-let to increase income. SREI suggest that if the vacant units are re-let at rents between £4 and £4.50 per sqft, the yield increases from 7.76% to approximately 10%. The transaction is expected to complete on 21 August 2014.