Brockton Capital and Dunedin Property have sold the Highgate portfolio of industrial estates to Cording Real Estate for £51m – a 9.25% yield.
The six estates in the North, Midlands and South East comprise 1.6m sq ft of multilet space, with an annual rent income of £5m, or £3 per sq ft.
The income is diversified with 77 tenants on 130 leases. It has a vacancy rate of 9%.
The portfolio is made up of the Kayley Industrial Estate, Lancashire, a 305,706 sq ft estate in Tyseley, Birmingham, and the Lineside Industrial Estate, West Sussex.
Also included are the Greens Industrial Park in Wakefield, Yorkshire, and the Hindley Green Business Park in Wigan, Greater Manchester, as well as the Oxford Street estate in Wolverhampton, West Midlands.
Cording head of portfolio management Mark Millar said: “This portfolio is a good example of the type of investment we like to target for our income strategy. It has excellent fundamentals with a diversified and sustainable income stream and geographic spread. It offers us the opportunity to apply our asset management expertise to lease vacant space, increase the income and develop on the vacant sites.”
Tudor Toone advised Cording; JLL advised the vendors.
