Orchard Street acquires Trade City Reading for €17.5m (GB)

Orchard Street acquires Trade City Reading industrial estate for €17.5m (GB)

Orchard Street Investment Management has completed the acquisition of Trade City Reading, a multi-let industrial estate in Reading, developed in a joint venture by Kier Property and Investec. The asset was acquired on behalf of St. James’s Place UK Plc. for €17.5m (£15.68m), reflecting a net initial yield of 4.70%.

 

Trade City Reading comprises a newly-developed industrial estate of 12 modern trade units totalling 54,755ft² across a 2.5-acre site. It sits within Reading Gateway, a newly-developed Kier Property and Investec scheme comprising industrial, retail, leisure and residential in a prime location 2.5 miles south of Reading town centre and immediately north of Junction 11 of the M4 motorway. The estate is let to four tenants including Grand Taps, IN ‘n’ OUT Centres, ADI Global and GP Strategies Automotive with a further two units under offer. The rental tone reflects €15.66 - €16.78 (£14 - £15) psf with a WAULT on let units of 13.5 years term certain.

 

Harry Buxton, Acquisitions Manager at Orchard Street, commented: “This prime industrial asset benefits from an excellent location within the South East’s industrial hub, with the newly-developed Reading Gateway scheme providing increased critical mass and local infrastructure improvements enhancing the estate’s connectivity. With over 50% of the estate let or under offer and limited supply in the area, we are confident that the remaining units will let up well.”

 

Leigh Thomas, Executive Director of Kier Property, added: “We are delighted to have completed the sale of Trade City Reading. This 12-unit industrial estate is a prime example of our Trade City brand and the wider Reading Gateway is a fantastic example of Kier Property’s ability to deliver mixed-use development. Both Kier Property, and our funding partner Investec, look forward to completing Reading Gateway in the coming weeks.”

Related News