The property developer and investor has acquired two warehouse sites totalling 79,000 sq ft in a sale-and-leaseback deal with the occupier, Metal Fabricators.
The sites on Hall Lane and Moston Road in Sandbach, Cheshire, total 4.1 acres and comprise warehouse and manufacturing accommodation supplying engineered components to several industries globally, including construction, power generation, rail, nuclear and recycling.
The acquisition, the value of which was not disclosed, represents a net initial yield of 11% and is the latest deal for Glenbrook Investments, the Manchester-based developer’s investment arm.
Glenbrook Investments has further deals in the pipeline, it said.
Scott Griffiths, investment director at Glenbrook, said: “This acquisition has many attractive features including a low rent, unbroken 15-year term and compound rental growth collared at 2% per annum.
“We were also impressed by the strength of the management team and innovative nature of the business, which has been safely operating 24/7 during lockdown servicing new clients with a full order book.”
He added: “We would welcome conversations with other companies seeking to release capital from operationally critical assets.”
Agency OBI represented Glenbrook and Lambert Smith Hampton acted on behalf of the vendor.