The Newton-le-Willows developer has sold a 630,000 sq ft industrial portfolio to investor Colombia Threadneedle for £41.9m, reflecting a net initial yield of 6.37%.
The Network North portfolio includes assets in 17 locations, including St Helens, Wigan, Skelmersdale, Widnes and Ashton-under-Lyne. The portfolio is 92% let, with 60 tenants at present, and has an annual rent roll of £2.85m.
The bulk of the assets have been built by Network Space since 2000 and managed in-house by it since.
Columbia Threadneedle was represented in the acquisition by industrial specialists B8 Real Estate and Yorkshire’s Gent Visick, while the Leeds office of Knight Frank represented Network Space.
Richard Ainscough, managing director at Network Space, said: “We took the decision to sell these assets so that we can accelerate the speculative development of our new industrial property.
“We will also continue to invest in our asset management platform so that we can continue to get the best out of our retained investments and those of our investor partners.”
Graham Foxton, partner in capital markets for Knight Frank, said: “The portfolio is a rare commodity given that it comprises 100% industrial buildings of excellent quality. Multi-let industrial is an attractive sector in the country and this proves that the North can – and does – compete with the South”.
FDR Law acted for Network Space and Addleshaw Goddard represented Columbia Threadneedle.