SWIP Property Trust and asset manager Centurion Properties have acquired Deeside Industrial Park East in Chester from Universities Superannuation Scheme, for £34m, at an 8% yield.
The 105-acre estate comprises 49 units totalling 827,500 sq ft, with individual unit sizes ranging from 1,980 sq ft to 136,650 sq ft. There are 33 tenants, producing total annual rent of £2.77m, which equates to an average rent of £3.18/sq ft for the industrial space and £6.00/sq ft for the office space. The estate also has 11 vacant units, totalling 119,000 sq ft, a vacancy rate of 15%.
Julian Rooth, chief executive of Centurion Properties, said: "This acquisition is part of our on-going strategy with SWIP Property Trust of buying industrial property with sustainable, diversified income, where there is the potential to add value by applying a dynamic asset management approach."
Kerri Hunter, deputy manager of the SWIP Property Trust, said: "We were attracted to this property not only by its strong and diversified income stream but also because it has the potential to add value through implementing various asset management initiatives. It is a good addition to the active industrial element of the SWIPPT portfolio and we will draw on the expertise of Centurion to enhance the performance of this asset through our strategic partnership with them."
The £2.6bn SWIP Property Trust is managed by SWIP, now part of Aberdeen Asset Management. Savills acted for SWIPPT and Centurion and JLL advised Universities Superannuation Scheme.