Stenprop, the UK industrial property company, has acquired two multi-let industrial properties, comprising 58 units, in Durham and West Bromwich, for a total consideration of £14 million.
Mandale Business Park, located on the Belmont Industrial Estate on the outskirts of Durham, was acquired for £11.2 million from Mandale Investments Limited. Comprising 37 modern units, the 136,000 sq ft estate is almost 100% occupied by 31 tenants spanning a range of sectors including trade counters and light manufacturing. The property generates a total annual passing rent of £793,374 equating to an average rent of £5.83 per sq ft. The property is in an excellent strategic location adjacent to Junction 62 of the A1(M).
In a second transaction, Stenprop has purchased Phoenix Industrial Estate in West Bromwich for £2.8 million, from a private investor. It extends to 21 units totalling 46,718 sq ft. The estate is 100% occupied off a passing rent of £211,460, equating to a low average rent of £4.53 per sq ft.
The property benefits from excellent arterial connectivity, adjacent to the main A4035 trunk road from West Bromwich to Dudley and less than three miles from Junction 1 of the M5.
“We continue to grow our portfolio of well-occupied multi-let industrial properties in locations where there is critical undersupply of suitable space and which benefit from strong local infrastructure. Both acquisitions offer strong day one income, with the longer-term opportunity to unlock reversionary potential utilising our proprietary industrials.co.uk platform. Whilst appetite for well let industrial assets continues, driven by accelerating structural trends, we remain able to source and acquire properties that meet our investment criteria, with a significant pipeline of opportunities as we head towards 2021,” said Will Lutton, Head of Investment at Stenprop.