Schroders’ Multi-Let Industrial Property Unit Trust (MLIPUT) has purchased Stag Industrial Estate, an 80,246 sq ft, 24 unit scheme, on Atlantic Street in Altrincham.
The estate has been sold on behalf LaSalle IM, to MLIPUT for £7.525 million, reflecting a net initial yield of 5.89%. Cushman & Wakefield acted for MLIPUT whilst JLL acted for LaSalle IM.
The estate is currently home to 19 tenants, including Plumbase, Edmundson Electrical, Crown Paints and Brandon Hire. Located opposite a new ASDA Superstore and close to Altrincham Retail Park, the area is popular with trade counter occupiers and is highly reversionary.
Graeme Rutter, Head of Schroder Real Estate Capital Partners commented: “This is another important acquisition, as it fulfils three important objectives for MLIPUT in providing regional diversification, spread of tenant risk and a great opportunity to re-position and add value.”
Simon Marshall of Cushman & Wakefield said: “The South Manchester industrial market continues to attract good occupier demand, and with a dearth of new supply, quality estates like Stag are set to reap the rewards of strong rental growth. Stag Industrial Estate not only offers a secure income stream to a quality tenants, but the potential to capitalise on an increasingly trade focussed location.”
Craig Barton of Cushman & Wakefield added: “We are delighted to secure another opportunity for our MLIPUT, following our recent success in acquiring Parkway IV, Trafford Park. South Manchester, particularly in areas like Altrincham, has seen significant reductions in industrial stock due to land being sold for higher value residential developments. We expect this reduced supply, alongside strong demand to drive strong investment performance at Stag Industrial Estate.”
