Stenprop has acquired the Dunball Industrial Estate in Bridgwater, Somerset in an off-market deal from a private investor for £4.8 million, reflecting a net revisionary yield of 6.9%.
The modern estate is strategically located just off junction 23 of the M5. Stenprop has acquired four terraced units, totalling 48,432 square feet of industrial space. Three of the units are let to Scania, Wincanton and Astigan and one is vacant.
The weighted average unexpired leas term is 2.5 years to lease expires and 1.7 years to lease breaks. The total annual passing rent of £245,000 equates to a low average rent of £6.74 / square feet.
“This is an excellent addition to our portfolio in a region where we were underweight. Dunball Industrial Estate has a strong letting history, with opportunities for immediate rental growth and a strong tenant line up. The wider Bridgwater area is undergoing a period of change with the development of the nuclear power station at Hinkley Point C, which will create 25,000 jobs and increase industrial demand in the short, medium and long terms” commented Julian Carey, Executive Property Director of Stenprop.
Following the acquisition at Dunball Industrial Estate, Multi-let industrial assets account for 27.3% of Stenprop’s portfolio. Multi-let industrial assets are expected to comprise approximately 60% to 65% of Stenprop’s total portfolio of properties by 31 March 2020.