Birkenhead estate heads Schroders regional swoop
Schroder Real Estate Investment Trust has paid £19.85m for four industrial assets in the North West, reflecting a net initial yield of 6.9%, with Valley Road Industrial Estate the largest component.
Valley Road Industrial Estate is a 15-unit 190,000 sq ft estate taking up 10 acres close to Junction 1 of the M53. With 40% of the estate recently refurbished, the estate is valued at £11.4m in the deal.
Tenants include frozen food supplier KPFF, Balfour Beatty and gift and voucher business Park Retail
The second asset is Coral Products’ base at Haydock Industrial Estate off the A580 East Lancs Road, a 98,551 sq ft manufacturing and recycling facility valued at £4.9m.
Coral, which was recently acquired by a subsidiary of the Canadian IPL Plastics Group, occupies the entire site on a lease expiring in January 2031.
In Sandbach, Schroder REIT has taken on two assets let to Newfield Fabrications, a steel fabricating business established in 1965, for a combined £3.6m.
The site lies three miles from Junction 17 of the M6. The first asset comprises a 77,880 sq ft manufacturing and distribution facility on a 4.1-acre site, let on a 13.9 year term, while the second asset comprises an 8,000 sq ft industrial unit with main road frontage, also let for 13.9 years.
Following completion, SREIT’s net loan to value, adopting the last published independent valuation, will be 34.7%, with cash of £11.8m and remaining undrawn loan facilities totalling £6.8m. Tomorrow, the business will announce its interim results for the six months to 30 September.
