Stenprop has bought a modern and well-located industrial estate in Rochdale for £2.2 million in line with its stated strategy to focus on UK multi-let industrial (MLI) property.
The estate, Globe Park, comprises 17 units, totalling 38,000 sq ft. It is located in Moss Bridge Road in the canalside industrial area of Rochdale, close to junctions 20 and 21 of the M62 motorway.
The purchase from Tameside Metropolitan Borough Council reflects a net initial yield of 6.5%, taking into account a rental guarantee on vacant units. The average passing rent of the leased space is £4.50/sq ft. Around 36% of the space is vacant, including one large unit of 11,500 sq ft.
Julian Carey, Group Property Director of Stenprop, said: “We are pleased to add Globe Park to our portfolio, as it is a high-quality, modern estate in an area let of low rents and with favourable demand-supply dynamics that we believe will lead to strong rental growth.
“The estate also offers a number of asset management opportunities, including the ability to let the vacant units and reduce the service charge from a high level to further promote rental growth. We are progressing work on dividing up the large vacant unit, as we believe smaller units of around 6,000 sq ft better suit the local market”.
Stenprop was represented by Edwards & Co in the acquisition of Globe Park; the vendor was advised by GVA.