Shortland Penn + Moore, the commercial property agency with offices in Birmingham and Coventry, has advised on the £3.2 million purchase of a Midlands industrial estate.
SP+M’s David Allen advised Grafton Associates Ltd, a newly launched family investment vehicle specialising in investments industrial estates, in its acquisition of Central City Industrial Estate, which is less than a mile from Coventry City Centre.
The estate, which has been acquired from The Pears Group, consists of 24 light industrial units – totalling around 40,000 sq ft – and is fully let to 17 tenants. It generates an income of £264,019 per year and the purchase price reflects a net yield of 7.8 per cent.
David Allen said: “We are pleased to have advised Grafton Associates on this acquisition.
“Historically, this estate has always been well-let and in the current climate it offers our client an excellent opportunity to add value through rental growth and further active asset management.”
Grafton Associates director Charles Lochrane, a former investment partner of Strutt & Parker, said: “This is the first in a series of planned investments aimed at building a diversified portfolio of industrial properties on behalf of the Fox family, building on their existing investment in the Chalcroft Business Park in Southampton.”
Colliers International’s National Investment team advised The Pears Group.
John Hanson, of Colliers, said: “This estate has performed very well for The Pears Group during its ownership.
“The proximity of the estate to Coventry City Centre results in strong occupier demand. The estate has a history of good tenant retention and rental values on the estate have increased over the past 12 months. With the estate being fully let, this presented an opportune time for our client to dispose of the investment.”