SWIP Property Trust and Centurion Properties have bought a North West industrial estate for £34m, reflecting an 8% net initial yield.
Deeside Industrial Park East, to the north-west of Chester, was bought from Universities Superannuation Scheme.
The 105-acre estate comprises 49 units totalling 827,500 sq ft, with individual unit sizes ranging from 1,980 sq ft to 136,650 sq ft.
There are 33 tenants, producing total annual rent of £2.77m, which equates to an average rent of £3.18 per sq ft for the industrial space and £6 per sq ft for the office space.
The average weighted unexpired lease term is eight years.
The estate also has 11 vacant units, totalling 119,000 sq ft, relecting a vacancy rate of 15%.
Centurion Properties chief executive Julian Rooth said: “This acquisition is part of our on-going strategy with SWIP Property Trust of buying industrial property with sustainable, diversified income, where there is the potential to add value by applying a dynamic asset management approach.
“We have delivered significant outperformance for SWIP Property Trust through our £300m platform and we have significant capital available for further acquisitions.”
SWIP Property Trust deputy manager Kerri Hunter said: “We were attracted to this property not only by its strong and diversified income stream but also because it has the potential to add value through implementing various asset management initiatives. It is a good addition to the active industrial element of the SWIP Property Trust portfolio and we will draw on the expertise of Centurion to enhance the performance of this asset through our strategic partnership.”
Savills acted for SWIPPT and Centurion; JLL advised Universities Superannuation Scheme.
chris.berkin@estatesgazette.com
