AEW UK Long Lease REIT has bought the Pocket Nook industrial estate in St Helens from Property Alliance Group for £9m, reflecting a net initial yield of 5.4%.
The 16.1-acre site is let to three tenants, including Biffa Waste Services and the Driving Standards Agency, and includes two industrial units and office space.
An additional industrial unit is currently under construction and pre-let to Biffa.
Alex Short, director of AEW UK Investment Management, and portfolio manager of the company said: “This industrial site adds to the diversity of our growing portfolio of properties, which so far includes two hotels, a waterpark and a gym.
“We are also pleased by the strength of the income that this asset provides and, in particular, Biffa’s increasing commitment to the location with the addition of a second unit.”
Neil Higson, of Parkinson Real Estate, said: “This highlights the strength of the North West commercial property market, and continues to show solid investor demand in the industrial sector within the regions.
“The long income was the key to this acquisition, and it was a pleasure to work with a highly credible, real estate investment trust, and to provide them with our market knowledge.”
Parkinson Real Estate acted for AEW UK Long Lease REIT, and Lewis & Partners acted for Property Alliance Group.