Cornerstone Real Estate Advisers has acquired three light industrial assets comprising over 570,000 sq ft in three separate deals totalling GBP35m, on behalf of two clients.
These acquisitions bring Cornerstone’s UK light industrial portfolio to a total of around 2.5 million sq ft and represent part of its on-going investment programme into this sector. Cornerstone aims to take advantage of both the attractive income yields and the opportunities to create value through active management that are currently available in the sector by using its in house team’s stock selection and specialist asset management skills.
On behalf of a retained in house client, Cornerstone has acquired Monkspath Business Park (pictured) in Solihull from clients of Schroders for GBP18.25m. Monkspath is the premier small unit industrial estate in Solihull, strategically located less than one mile from the M42 in the town’s prime commercial location. The property comprises 41 modern warehouse units spread over 360,000 sq ft. Occupiers include Cable & Wireless, Severn Trent Water and BSS Group. Cornerstone has already identified a number of value enhancing opportunities to improve the estate’s occupancy. Jones Lang Lasalle acted for Cornerstone, CBRE for the vendor.
On behalf of a pension fund client, Cornerstone has acquired Evolution in Sheffield from a joint venture between Harworth Estates and Strategic Sites for GBP7.2m. The newly built asset is located within 1.5 miles of Junction 33 of the M1 and is situated within Advanced Manufacturing Park, one of the UK’s top manufacturing and technology parks and home to Rolls Royce’s new 500,000 sq ft facility. Evolution comprises twelve units across 87,500 sq ft and is fully let to a range of blue chip tenants. OBI Property acted for Cornerstone, Knight Frank and LSH for the vendor.
On behalf of an insurance company client, Cornerstone has acquired Kingston Bridge Trading Estate for GBP8.7m. Kingston Bridge is one of Scotland’s premier multi-let trade parks and is let to national multiples such as Screwfix, Travis Perkins, Hire Station and Edmundson Electrical. Located within 1km of Glasgow city centre and with direct access to the M8 and M74, the property is able to serve the entire city and surrounding areas. The estate currently produces a rent of GBP740,000 per annum and has a weighted unexpired lease term in excess of five years. The asset offers numerous opportunities to add value by improving the tenant mix, regearing leases and increasing the built area through partial redevelopment. Ryden acted for Cornerstone, Knight Frank for the vendor.
Nick Pink, chief investment officer of Cornerstone Europe, says: “These acquisitions are excellent examples of the kind of assets we target in this segment of the market. They are dominant estates in strong local markets, which also provide our asset managers with immediate opportunities to enhance the net income, in order to generate strong returns for our clients.”