Frogmore has sold Stuart Road industrial estate in Altrincham to the specialist commercial property investment manager Orchard Street Investment Management for GBP9.15 million.
The acquisition, which Orchard Street has made on behalf of St James’s Place Property Unit Trust, reflects a net initial yield of six per cent.
The 94,896 sq ft asset comprises nine modern industrial and warehouse units and is located on Altrincham Business Park, eight miles south of Manchester city centre. Currently fully let to six tenants with a WAULT of 5.8 years the industrial estate produces a rental income of GBP578,428 per annum.
Built within the last 14 years, the asset comprises two terraces of modern warehousing units with integrated office accommodation and offers a number of asset management initiatives including regearing and reletting of current leases.
John Humberstone, partner at Orchard Street, says: “Stuart Road is a prime multi-let industrial estate situated in an established and popular business location. The North West is a successful and dynamic industrial market and we expect occupational and investor demand for high quality UK industrial and logistics assets such as this, to remain strong.”
John Matthews, asset manager at Frogmore, says: “This sale underlines the quality of the asset and highlights the continued surge in investment activity within the industrial sector. The levels of interest have been sustained whilst occupier demand in the North West remains above the national average making the region one of the most space constrained markets in the UK.”
Dowley Turner Real Estate acted for Orchard Street and CBRE acted on behalf of Frogmore.