Delancey has bought the freehold interest in the West Hallam Industrial Estate, Derbyshire, for £18.65m from Douglas Bay Capital.
The purchase price reflects a net initial yield of 8.6%.
The company said the 120-acre site, which provides around 1.3m sq ft of warehouse and logistics space across 106 buildings, is let to third-party logistics operator TDG.
TDG has an eight-year lease and management agreement at an minimum rent of £1.7m pa, which equates to £1.30 per sq ft overall.
Delancey said it will now work with TDG on letting vacant space and storage land at the estate.
Managing director Paul Goswell said: “We regard this as a very exciting asset which offers huge potential through active asset management. It is the first time the property has changed hands in 50 years, and we envisage there will be a host of opportunities to add value over time.”
Delancey was advised by Burbage Reality. The Birmingham office of Colliers International and Celtic Asset Management advised Douglas Bay Capital.
nathan.cross@estatesgazette.com
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