Franck-Steier Price has recently completed the portfolio sale of three multi-let industrial estates for £40.65 million on behalf of British Steel Pension Fund.
The estates are located in Dunstable, Northampton and Redditch and comprise 56 units totalling 555,000 sq.ft. The portfolio is let to 44 tenants with two units vacant and a combined rent roll of £2.73 million.
The purchase price reflected a net initial yield of 6.29%, assuming costs of purchase of 6.77%.
The purchaser was a Pears Property, represented by Hoffman and Partners.
Ben Blackwall commenting on the transaction said ‘ The portfolio was hotly contested with over 25 bids received from a combination of UK institutions, property companies and over-sea investors highlighting the strong investor demand for the multi-let industrial sector. The portfolio sold for 15% over the original quoting price.’