A multi-let industrial estate in Hereford has been snapped up by investment firm Kindale Ltd for in excess of £1.6 million.
Station Industrial Estate in Bromyard was placed on the market by property agents Harris Lamb on behalf of a private vendor.
Alex Eagleton of the Investment team said: “There has been a huge appetite for multi-let industrial opportunities over the last 18 months, and we had high levels of interest in this site.
“The estate extends to 3.4 acres, with 54,938 sq ft of commercial and office accommodation comprising of eight industrial units and two offices, the majority of which have undergone a high-quality refurbishment.
“The site is fully let to five tenants over eight leases, with almost three quarters (74 per cent) being let to manufacturers Sapa Profiles, an established, low-risk tenant on long-term lease agreements. That security, the location and the high building standard made the opportunity a very attractive asset,” he added.
Harris Lamb placed the estate on the market with an asking price of £1,627,750, representing a net initial yield of 9.5 per cent and a reversionary yield of 10.07 per cent, and received a number of bids from interested parties.
Following a call for best and final bids, Kindale Ltd, which specialises in the UK property investment market successfully purchased the site for an undisclosed sum in excess of the guide price.
Alex added: “This is the latest example of the increasing trend for investors choosing to enhance their portfolios with well let industrial sites. A combination of secure, stable tenants on and rental growth opportunities make such acquisitions a lucrative, long-term asset.
“Demand for multi-let industrial is particularly strong if priced correctly – our Investment team sold an estate last year having received 12 bids, while within the past couple of months we’ve bid on such an estate for a client and found that competition was high; with more than 20 bids on the table.”
Other tenants occupying units at Station Industrial Estate are Bromyard Plumbing & Electrical Supplies Ltd, The Total Event Company Ltd, Woodstar Software Ltd and JM McCulloch Ltd.