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Stenprop has acquired a modern, fully-let industrial estate in Huddersfield for £5.8 million in line with its stated strategy to focus on UK multi-let industrial (MLI) property. The purchase from a private investor reflects a net initial yield of 7.4%.

Ellis Hill Industrial Estate is located on the A62 Leeds Road and comprises six units, totalling 76,140 sq ft of space, with good yards. Tenants include Pendragon, trading as Mercedes Benz, Goodman Retail, trading as Volkswagen, Sicame UK and St Gobain on leases that extend from 4-12 years. The average passing rent is £5.57/sq ft.

Julian Carey, Group Property Director of Stenprop, said: “Ellis Hill fits perfectly with our strategic objective of investing in multi-let industrial in the UK in areas with good supply-demand characteristics. 

“The estate is only around 10 years old and benefits from being fully let to companies with strong covenants, while the acquisition price of £76/sq ft reflects a significant discount to replacement cost. A number of the tenants on the estate are associated with the car dealerships across the road and there is the future potential to develop higher value uses on some of the surplus land fronting the A62, which previously had planning consent for an additional 15,000 sq ft”.

The estate is the fifth acquired by Stenprop since its purchase of the Industrials.co.uk portfolio for £127 million in June 2017. Stenprop is seeking a further £100 million of multi-let industrial opportunities in the UK over the course of 2018.

Stenprop was represented by Ryden and the vendor was represented by Wimbush Real Estate.