Frank-Steier Price Ltd. Leading niche commercial property investment practice Logo for Midlands Property Awards 09

October 2019

Unit 11, Waterfall Lane Trading Estate, Cradley Heath, B64 6PU

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under offer

The property is well located on the established Cradley Heath Industrial Estate.  The property comprises a 6 bay 39,461 sq.ft detached industrial unit.  The property is let to ATB Group UK Ltd on FRI terms for 10 years from June 2018.  There is a tenant break option in June 2023, subject to 6 months notice.  Passing rent is £130,000 per annum, reflecting a low £3.29 per sq.ft.  Tenure long leasehold expiring September 2996 at a fixed rent of £100 per annum.  Offers sought in excess of £1,275,000 which reflects a net initial yield of 9.61% and a low capital value of £32.31 per sq.ft.

Franck Steier Price has recently completed the sale of an industrial investment on Waterfall Trading Estate, Cradley Heath on behalf of Ash Holdings.

The subject property is a 6 bay industrial unit with steel truss roof and single storey offices along the front elevation. There are four loading doors to the front elevation and a further to at the rear. The property extends to 39,461 sqft on a 1.48 acre site.

The unit is let to ATB Group UK Ltd on a 10 year term from June 2018. The tenant has a break option in June 2023, subject to 6 months notice. There is a 2018 Schedule of Condition attached to lease. The current rent is £130,000 (£3.29 per sqft).

The property was sold to a private investor for £1,277,500 which reflected an initial yield of 9.6%.