M&G acquires Trafford Park multi-let for £47m

Lothbury Investment Management has sold the 20-unit, 100,000 sq ft Premier Park industrial complex.

M&G has acquired the Trafford Park asset for around £47m. The deal is the investor’s second Greater Manchester industrial transaction of the year; M&G bought the 170,000 sq ft Stockport Trading Estate in March.

A spokesperson for M&G Real Estate said: “The acquisition of Premier Park in Manchester, one of the UK’s leading industrial hubs, represents a strategic addition to our UK portfolio.

“Developed to a high specification in 2008, the asset continues to meet the demands of today’s occupational market and is almost 100% let.”

The spokesperson added: “Located opposite our holding at The Ark, Trafford Park, provides us with enhanced exposure to this dominant regional industrial estate, allowing us to implement various initiatives to drive further value for our investors.”

Lothbury acquired Premier Park from Harbert Management Corporation for £19.25m, at a yield of 5.75% in 2014. The asset’s onward sale to M&G reflects a net initial yield of around 3.3%.

The asset, where Appliance World occupies 45,000 sq ft, formed part of Lothbury’s £1.6bn property fund, which it is in the process of liquidating.

In October, Lothbury launched the sale of the 50,000 sq ft Four Hardman Street in Manchester’s Spinningfields district.

Ed Hockley, chief investment officer at real estate investment manager, Lothbury Investment Management, said: “Trafford Park is a high-quality asset and has been an excellent performer for the fund. It has gained and consistently maintained near 100% occupancy and generated above-average income, despite challenging market conditions.

“Our long-term strategy of buying and developing high quality assets in core locations has helped meet the liquidity requirements of our investors.”