An estate of 16 industrial units on the edge of Fenton Industrial Estate in Stoke-on-Trent known as City Park, has been acquired by GVA on behalf of Sandyford Properties.
City Park was purchased for £3.46m with a net initial yield of 7.70% and agreed rents on recently renewed lease terms achieved up to £4.00 per sq ft, an average increase of 38%.
Totalling 88,718 sq ft, the 16 units range in size between 1,759 sq ft and 16,132 sq ft.
The development, which is fully let to 18 occupiers on individual leases, has a number of long-standing tenants, largely due to its convenient location near to the region’s key arterial transport routes.
Sandyford Properties is now managing a programme of refurbishment works at the estate to further enhance the quality of the offering and the experience for tenants.
Adam Wildig at GVA, said: “The shortage of quality industrial space in the market has been well documented in the media and North Staffordshire in particular, has seen high demand from occupiers in recent years.
“The purchase of City Park demonstrates Sandyford Properties’ continued targeting of quality multi-let industrial assets. Given the low site coverage, the estate offers a range of asset management opportunities which will only be enhanced further on completion of the refurbishment and development programme.”
B8 Real Estate and Colliers International acted on behalf of the vendor, Pears Property.
John Burrows of B8 Real Estate commented: “The estate has a proven track record, with an excellent tenant retention rate and improving rental levels.
“The strong level of interest generated by this sale demonstrates significant investor demand for secondary multi-let estates which offer the ability to further enhance value through a refurbishment programme.’