Harworth Group has acquired a Midlands industrial estate for £10.1m.
The property developer and investor said the buy was in line with its strategy to grow its recurring income base through the acquisition of high yielding assets with further asset management potential.
It has bought the estate, located close to both Dudley and Stourbridge town centres and less than 10 miles from Birmingham City Centre, at a net initial yield of 10.2% and a reversionary yield of 12.75%.
The 20.5-acre site comprises three fully let industrial units totalling 360,000 sq ft and generates a passing rent of £1.095m per annum.
It acquired the site from Xandor Automotive and on completion of the deal Xandor entered into a new 15-year lease for 240,000 sq ft of factory space it currently occupies, whilst also agreeing a short-term lease for an additional 15,000 sq ft unit.
The remaining 110,000 sq ft unit is let to Sunrise Medical, a designer, manufacturer and distributor of mobility products, on a lease expiring in July 2022. The site also includes 4.16 acres of open storage land, providing development potential.
HWG : Harworth acquires Midlands industrial estate for £10m