Schroder Real Estate Investment Trust has exchanged contracts to buy Stacey Bushes industrial estate in Milton Keynes for £9.2m.
The 213,536 sq ft freehold property produces a rent of £755,726 pa – a net initial yield of 7.76% pa.
Built in the 1980s, it has recently undergone an extensive refurbishment to provide modern accommodation in units ranging from 3,700 sq ft to 10,000 sq ft.
The property is currently let to 12 tenants with an average unexpired lease term, assuming all tenant breaks are exercised, of 4.5 years.
There are currently eight vacant units on the estate, representing approximately 20% by area.
Following completion of the acquisition, which is expected to take place on 21 August, the company will have cash of approximately £14.2m and a net loan-to-value of approximately 32%, based on an independent valuation as at 30 June 2014.
chris.berkin@estatesgazette.com
