Slough Estates International (SEI), a leading provider of flexible business space, has completed the off-market purchase of the holding entity of the Treforest Industrial Estate in Cardiff, Wales for £63 million. This is SEI's first entry into the Welsh market and is in line with its strategy to acquire large business parks in strategic locations with good revenue streams and strong development potential.
SEI now owns six of the largest industrial estates in the UK including; the Slough Trading Estate, Heywood Distribution Park in Manchester, Woodside in Dunstable, Winnersh near Reading and Kings Norton, near Birmingham.
Treforest Estate comprises 130 acres with 9.6 acres of development land and is located adjacent to the A470 Cardiff to Merthyr Tydfil dual carriageway just north of Cardiff. It has been an established trading estate since 1936 and is 4 miles north of junction 32 on the M4. The estate currently leases space to 97 customers, including the BBC, GE, Honeywell, WHSmith, Barclays and Lloyds TSB.
With 1 million ft² of business space and a rental income of £4.03 million, the acquisition provides a solid foundation for growth in what is a strong market with excellent prospects over the coming years.
Representing one of the biggest industrial investments in South Wales, the holding entity of the Estate was acquired from Dunedin Property for £63 million.
The news was welcomed by Andrew Davies, Minister for Enterprise, Innovation and Networks, who said the acquisition by SEI, one of Europe's leading players, would bring new investment to Treforest Industrial Estate, provide long term benefits and create new employment opportunities in Wales.
"SEI has strong environmental credentials, is committed to providing high quality workspace and has a track record of delivering what their customers need.
"Their long term plans involve refurbishing and upgrading properties on the estate as well as developing new high quality units.
"This investment will create a high quality working environment and make Treforest Industrial Estate a very attractive proposition for companies considering locating to Wales as well as providing expansion opportunities for companies in Wales."
Ed Bampton, South East Wales Deputy Regional Director, Department of Enterprise, Innovation and Networks, described the investment as excellent news: "It is a significant investment and we are delighted to have worked with SEI to secure their first acquisition in Wales and are looking forward to working with them on their long term development strategy for the site."
Ian Coull, Chief Executive of SEI commented: "We are delighted to be entering the Welsh market. Industrial development in Cardiff is moving from Cardiff Bay to areas in the north of the City Centre and Treforest Estate is ideally placed for business development. This purchase provides an excellent opportunity with good quality properties, some high calibre clients and has the potential for further development."
Advisors on the deal were King Sturge for SEI and Holley Blake for Dunedin Property.
Source: Slough Estates