Tuesday, 15 July 2014
Lothbury purchases on Trafford Park, Manchester for £19.25 mln (UK)
Lothbury Investment Management has completed the purchase of Premier Park, the most recently built multi-let estate of its size on Trafford Park in Manchester, for £19.25 mln (approx. €24.1 mln), on behalf of Lothbury Property Trust. The purchase, completed at the end of June from vendors Harbert Management Corporation, reflects an equivalent yield of 5.75%.
Premier Park, which was completed in 2008, comprises 21 modern industrial units, with 24/7 security, totaling nearly 200,000 ft² (approx. 18,500 m²). They are designed for warehouse and industrial use and let to 12 tenants, with three units currently void, albeit with a rental guarantee from the vendor. Units range from 4,724 ft² (439 m²) to 15,640 ft² (1,453 m²), generating rental income of £1,146,863 (approx. €1,438,300) per annum with rents ranging from £5.50 per ft² (approx. €6.90) to £7.40 per ft² (approx. €9.30). The current rent passing is considered reversionary. Tenants include the BBC, Indesit, Selecta UK and KCI Medical.
Mike Toft, Fund Manager and Director at Lothbury Investment Management, said: “We are very pleased to have secured Premier Park, which will join our core portfolio of assets. It has been our intention to invest in the area for some years and this purchase is a strategic, long-term buy that will deliver us secure income and excellent rental performance. It is also the best multi-let estate within the area.
“Tenants on Premier Park are on good covenants, the local economy is strong and there is high demand for good quality units such as these. Our first aim is to let the the void units, which, given the demand, we expect to do very quickly.”