Industrial property specialist Stenprop has bought the Globe Park estate in Rochdale from Tameside Council for £2.2m, reflecting a net initial yield of 6.5%.
The Globe Park estate off Moss Bridge Road, close to Junctions 20 and 21 of the M62, comprises 17 units totalling 38,000 sq ft of space. Current occupiers include engineering firm JSD Rail.
The average passing rent of the leased space is £4.50/sq ft, and around 36% of the space is vacant, including one large unit of 11,500 sq ft.
Julian Carey, group property director of Stenprop, said: “We are pleased to add Globe Park to our portfolio, as it is a high-quality, modern estate in an area let of low rents and with favourable demand-supply dynamics that we believe will lead to strong rental growth.
“The estate also offers a number of asset management opportunities, including the ability to let the vacant units and reduce the service charge from a high level to further promote rental growth.”
Carey added Stenprop was currently looking to divide up the vacant 11,500 sq ft unit into two units of around 6,000 sq ft, which would “better suit the local market”.
Stenprop was represented by Edwards & Co, while Tameside Council was advised by GVA.