UK multi-let industrial owner and operator, Stenprop, has acquired Bradley Hall Trading Estate from HIMOR Property Limited for £20.6 million, reflecting a net initial yield of 6.43%.
Following this acquisition, the company’s multi-let industrial portfolio now accounts for 75% of Stenprop’s total portfolio and the company remains on track to be 100% multi-let industrial by the end of the current financial year.
The property comprises of approximately 25 555m2 of terraced multi-let units ranging in size from 32m2 and 21 373m2 of income producing yard areas. It is 100% let to a diverse range of local and national businesses, generating a total annual passing rent of £1.4 million. 99% of rent due at the estate during the first half of 2021 was collected.
The estate also offers potential for Stenprop to grow income and value through asset management with several lease events due in the near term as well as potential development opportunities to increase the low site density.
The asset is in an established commercial hub, five miles north of Wigan town centre and it benefits from good transport connections.
The North West has been one of the strongest performing industrial and logistics regions in recent years and its market has been characterised by a growing demand supply imbalance, particularly for smaller multi-let units ranging between 92m2 to 1 858m2 which has been exacerbated by a lack of speculative development.
The REIT has continued to grow its exposure in the region which now totals over 139 000m2 following several recent acquisitions, representing c.26% of its multi-let industrial portfolio.
Will Lutton, Head of Investment at Stenprop, commented: “Located in one of the best performing industrial regions of the UK, this acquisition fits well with our strategy of acquiring assets with strong day one income and the opportunity to add value using our management platform. We have already identified a range of asset management opportunities at the Bradley Hall Estate which we are confident will enable us to increase the rents significantly over time. The granular tenant base and smaller unit sizes are well suited for the strength of our Industrials Hive operating platform and our Customer Engagement Manager and Smart Lease models.”