Schroder REIT has bought the Stanley Green Trading Estate and an adjoining development site in Cheadle, south Manchester for £17.25m.
The combined price reflects a blended net initial yield of 5.2%.
Schroder REIT paid £14.4m for the nine-acre industrial estate, representing a 6.3% yield.
It comprises around 150,000 sq ft of warehouse space across 14 units. It is fully let to 13 tenants and provides a rent of £960,000 per year, equating to an average of £3.55 per sq ft. During the pandemic 97% of rent owed has been collected. The estimated market rental value is circa £1.25m per annum.
The 3.4-acre development site cost £2.85m and has a historic planning approval for 48,000 sq ft of trade counter and warehouse space.
Schroder plans to seek an improved planning consent and develop the site during 2021.
The REIT has £40m in cash and undrawn loan facilities, which it said provided further capacity to increase its income through new acquisitions and investment in its portfolio.
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