The SWIP Property Trust (SWIPPT) and Centurion Properties, the UK asset and development manager, have acquired a prime industrial estate in the north west of England for GBP34 million.
SWIPPT and Centurion have acquired Deeside Industrial Park East, which is seven miles north west of Chester, from Universities Superannuation Scheme. The purchase price reflects a net initial yield of eight per cent and a reversionary yield of 9.6 per cent.
The 105-acre estate comprises 49 units, totalling 827,500 sq ft, with individual unit sizes ranging from 1,980 sq ft to 136,650 sq ft. There are 33 tenants, producing total annual rent of GBP2.77 million, which equates to an average rent of GBP3.18/sq ft for the industrial space and GBP6.00/sq ft for the office space. The average weighted unexpired lease term is eight years.
The estate also has 11 vacant units, totalling 119,000 sq ft, which reflects a vacancy rate of 15 per cent.
Julian Rooth, chief executive of Centurion Properties, says: “This acquisition is part of our on-going strategy with SWIP Property Trust of buying industrial property with sustainable, diversified income, where there is the potential to add value by applying a dynamic asset management approach.
“We have delivered significant outperformance for SWIP Property Trust through our GBP300 million platform and we have significant capital available for further acquisitions.”
Kerri Hunter, deputy manager of the SWIP Property Trust, says: “We were attracted to this property not only by its strong and diversified income stream but also because it has the potential to add value through implementing various asset management initiatives. It is a good addition to the active industrial element of the SWIPPT portfolio and we will draw on the expertise of Centurion to enhance the performance of this asset through our strategic partnership with them.”
Savills acted for SWIPPT and Centurion and JLL advised Universities Superannuation Scheme.