The London-listed industrial landlord has acquired Bradley Hall Trading Estate from developer Himor, to expand its regional presence and grow income through asset management.
Stenprop bought the 296,000 sq ft multi-let industrial estate five miles north of Wigan town centre for £20.6m, it said in a statement today. The deal reflects a net initial yield of 6.43% and capital value of £67.50 per sq ft on the buildings, and £8.95 / sq ft on the yard areas, the company said.
Bradley Hall is fully let to around 100 businesses across a collection of units ranging in size from 344 sq ft to 28,900 sq ft. The property, which also includes income-producing yard areas spanning 230,000 sq ft, generates a passing rent of £1.4m. It is located close to Junction 27 of the M6 and Junction 6 of the M61 near Standish.
Stenprop has been increasing its exposure in the North West, where demand for industrial property has continued to outpace supply. The region’s sector recorded the highest take-up of any UK region in the first three months of this year, hitting 1.1m sq ft and accounting for 21.7% of the national total, according to figures from CBRE in May.
Stenprop’s investment portfolio in the region now tops 1.5m sq ft, representing around 26% of its multi-let industrial portfolio. In total, multi-led industrial real estate accounts for three-quarters of the company’s UK holdings, and the aim is to boost this to 100% by the end of this financial year.
Bradley Hall also offers the “potential for Stenprop to grow income and value through asset management”, with development opportunities to increase low site density and several lease events due in the short term, according to the investor.
“Located in one of the best-performing industrial regions of the UK, this acquisition fits well with our strategy of acquiring assets with strong day one income and the opportunity to add value using our management platform,” said Will Lutton, head of investment at Stenprop.
“We have already identified a range of asset management opportunities at the Bradley Hall Estate that we are confident will enable us to increase the rents significantly over time.
“The granular tenant base and smaller unit sizes are well suited for the strength of our Industrials Hive operating platform and our Customer Engagement Manager and Smart Lease models.”
Himor’s managing director Mark Booth added: “We have owned Bradley Hall for 16 years and the sale is a significant moment in Himor’s history. We are focused on several new developments and, coupled with a very strong market, it was the right time to sell the estate. We wish Stenprop all the best with its future ownership.”
Agency B8 Real Estate represented Stenprop in the transaction.