Harworth Group has acquired Thorns Road Industrial Estate in the West Midlands for £10.1m from Xandor Automotive Brierley Hill.
The 20.5-acre site near Dudley comprises three fully-let industrial units totalling 360,000 sq ft, which generate a passing rent of £1.1m per annum. The deal reflects a net initial yield of 10.2% and a reversionary yield of 12.75%.
Harworth has agreed a 15-year lease with Xandor Automotive, taking 240,000 sq ft of factory space, as well as a smaller 15,000 sq ft unit on a short-term lease.
The remaining 110,000 sq ft is let to mobility product manufacturer Sunrise Medical on a lease expiring in July 2022. The site also includes four acres of open storage land.
Harworth chief executive Owen Michaelson said: “This acquisition supports our ongoing investment in the real estate that supports manufacturing in the West Midlands, underlining our firm commitment to building and strengthening the communities we work in.”
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