Junction 1, Birkenhead, P.Google Earth 0
The 26-unit Birkenhead complex is fully let. Credit: Google Earth

Industrials REIT bags Birkenhead scheme for £10.8m 

Dan Whelan

The multi-let investor has bought Junction 1 Business Park, the largest transaction in a hat-trick of deals that included acquisitions in Stockton-on-Tees and Coatbridge. 

Industrials REIT has acquired the 26-unit Birkenhead complex for £10.8m from First Property Group, reflecting a net initial yield 7.1% and a capital value of £64/ sq ft.  Gerald Eve advised on the sale of Junction 1 Business Park.

The 168,000 sq ft industrial estate is fully let to occupiers including Bi-Fold Warehouse and marine consultancy Brookes Bell and generates a total annual passing rent of £822,151, which equates to a low average rent of £4.90 per sq ft. 

As well as Junction 1, Industrials REIT has also spent a combined £7.3m on Arkgrove Industrial Estate in Stockton-on-Tees and Dundyvan Industrial Estate in Coatbridge. 

Industrials REIT’s multi-let portfolio now accounts for 92% of its total assets. The company has now acquired 10 estates for £55m since 1 April 2021. The investor is aiming to be a fully focused multi-let REIT by 31 March 2022. 

Will Lutton, head of investment at Industrials REIT, commented: “These off-market acquisitions maintain the progress we have made this financial year delivering on our 100% MLI goal.  

“All three properties offer low passing rents and attractive pricing on a per sq ft basis.  With replacement costs remaining significantly below development costs and a structural shift in demand driven by growth in eCommerce, we are continuing to see an imbalance between demand and supply that is driving rental growth across our portfolio.” 

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