Vengrove, in partnership with Chenavari Investment Managers, has completed the off-market purchase of a 150,000 sq ft unit at Stakehill Industrial Estate in Rochdale from Legal & General for £8.6m, reflecting a net initial yield of 9.8%.
The premises near to the M62 are let to Aldi on a lease expiring in March 2016, offering a refurbishment opportunity.
Jack Burgess, partner of Vengrove, said: “This acquisition provides our highly experienced asset management team with the opportunity to transform the properties within an 18 month window.
“The March 2016 lease expiry provides exposure to a short term asset management opportunity with calculated occupational risk in a market that is experiencing an acute supply demand imbalance. These are key themes of our investment strategy.”
The acquisition pushes the opportunistic investment firm’s total transactions since 2013 over the £600m threshold.
Vengrove was represented by DTRE and WHR. Knight Frank advised Legal & General.