Cording Real Estate Group, the Northern European real estate investment and asset management firm, has acquired a portfolio of predominantly industrial properties in Wales for €38.2m (£33.4m), reflecting a net initial yield of 8.5%.
The portfolio, which comprises six industrial properties, a hotel and a leisure asset, was acquired from Newport-based RH Properties.
The industrial properties are a mix of single and multi-let units in South Wales. They total 852,000 ft² and are let at an average rent of c. €2.6/ft² with a weighted average unexpired lease term (WAULT) of more than nine years. They are two units in Swansea let to Trojan Electronics and Unit Superheater Engineering, a unit in Merthyr Tydfil let to Amnitec, a unit in Abercarn let to Smurfitt Kappa, a unit in Cwmbran let to Zodiac Seats and a multi-let unit in Blackwood.
The hotel property in the centre of Newport is let to Travelodge Hotels for a further 17 years and the leisure asset is Leisure@Cwmbran in the town centre, with a range of tenants such as a Vue cinema, a Frankie & Benny’s restaurant and a Bowlplex bowling centre and a combined WAULT of 13.3 years.
Mark Millar, Head of UK and Investment, said: “This portfolio is the type of investment we target for our income strategy. It is underpinned by secure, long-term income but offers us the opportunity to apply our asset management skills to refurbish and lease vacant space and renegotiate lease terms with the existing occupiers.”