An estate of 16 industrial units on the edge of Fenton Industrial Estate in Stoke-on-Trent known as City Park, has been sold by B8RE on behalf of Pears Property for £3.46m with a net initial yield of 7.70%.
The Estate comprises 88,718 sq ft of accommodation, which is fully let to 18 occupiers and has a number of long-standing tenants, largely due to its convenient location near to the region’s key arterial transport routes. Agreed rents on recently renewed lease terms achieved up to £4.00 per sq ft, showing an average increase of 38%.
The property was purchased by Sandyford Properties who are managing a programme of refurbishment works at the estate.
John Burrows of B8 Real Estate commented: “The estate has a proven track record, with an excellent tenant retention rate and improving rental levels.
“The strong level of interest generated by this sale demonstrates significant investor demand for secondary multi-let estates which offer the ability to further enhance value through a refurbishment programme.’
Sandyford Propeties were represented by Adam Wildig at GVA, who commented: “The shortage of quality industrial space in the market has been well documented in the media and North Staffordshire in particular, has seen high demand from occupiers in recent years.
“The purchase of City Park demonstrates Sandyford Properties’ continued targeting of quality multi-let industrial assets. Given the low site coverage, the estate offers a range of asset management opportunities which will only be enhanced further on completion of the refurbishment and development programme.”
Pears Property were represented by B8RE and Colliers International.
Sandyford Properties were represented by GVA.