Industrials REIT has acquired three multi-let industrial (MLI) estates, as it nears its target of being a fully focused MLI REIT by 31 March 2022.
The three estates, in Birkenhead, Coatbridge, and Stockton on Tees, have been purchased in separate transactions for a total consideration of £18m, reflecting a blended net initial yield of 7.1% and a capital value of £69 per sq ft.
Junction 1 Business Park, Birkenhead has been acquired from a listed property company for £10.8m, reflecting a net initial yield 7.1% and a capital value of £64 per sq ft. The 167,735 sq ft, 26-unit estate is 100% let and generates a total annual passing rent of £822,151, which equates to a low average rent of £4.90 per sq ft. Junction 1 Business Park is the dominant commercial centre in The Wirral and has witnessed strong occupancy and 100% rent collection levels since the start of 2020, reflecting both high levels of demand and take up in the region and a shortage of MLI product.
Arkgrove Industrial Estate, Stockton on Tees has been acquired from a private seller for £4.2m, reflecting a net initial yield of 6.5% and a capital value of £78 per sq ft. It is located immediately to the north of the A1046 Portrack Lane, in the heart of the Teesside region’s prime industrial and retail warehouse hub. It comprises a terrace of 14 recently refurbished units, together with a standalone trade counter unit as well as a secure yard, and totals 54,177 sq ft. The estate, which is currently 100% let, generates an annual passing rent of £291,712, which equates to an average passing rent of £5.38 per sq ft.
Dundyvan Industrial Estate in Coatbridge has been acquired from a property company for £3.0m, reflecting a net initial yield of 7.8% and a capital value of £75 per sq ft. The purpose-built MLI estate totals 40,067 sq ft across 29 units ranging from 600 sq ft to 3,900 sq ft and is currently 98% let. It occupies a strategic location southwest of Coatbridge Town Centre, adjacent to both the M74 and M8 motorways, and just 8.5 miles from Glasgow city centre. The estate generates a total annual passing rent of £246,680, which equates to an average rent of £6.30 per sq ft. Industrials REIT already owns five further MLI estates in Glasgow which benefit from strong local dynamics, with vacancy rates below 4% and strong rental growth.
Industrials REIT’s MLI portfolio now accounts for 92% of total assets.
MLI : Industrials REIT bags trio of assets