Cording Real Estate Group has sold Kayley Industrial Estate in Ashton-under-Lyne to AEW UK Core Property Fund for £6.3m, reflecting a net initial yield of 8.3%.
Located at Richmond Street, the freehold multi-let Kayley Industrial Estate is made up of 36 units, totalling 230,000 sq ft, on a nine-acre site. The current passing rent equates to £3.53/sq ft.
Michael Shears, assistant portfolio manager, AEW UK Core Property Fund, said: “The east Manchester industrial market is characterised by a substantial lack of stock, and Kayley Industrial Estate provides an exciting opportunity to significantly increase rental income through letting the vacant accommodation”.
The units of varying ages and sizes are let to 18 tenants, producing a total rent of £580,00 each year.
Kayley Industrial Estate is the second asset to be sold from a portfolio of six UK industrial estates, which Cording acquired in March 2015 for £51m. At the end of last year, Cording offloaded the first estate from the portfolio, an estate in Birmingham.
The remaining four estates are located in Wigan, Littlehampton, Wakefield and Wolverhampton.
Cording was advised by JLL and AEW was advised by Tudor Toone.