In line with Stenprop’s strategy of focusing on UK multi-let industrial properties, the company has recently purchased a well-located, modern industrial estate in Rochdale for £2.2 million.
The estate named Globe Park, comprises of seventeen 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.
“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” says Julian Carey, Group Property Director of Stenprop.
“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