UBS Asset Management's Real Estate & Private Markets business announces that the UBS Triton Property Fund has acquired Stakehill Industrial Estate in Middleton, Manchester for €51.8m (£46.35m). The addition of this prime industrial asset increases the Fund’s exposure to the sector to 37%.
The well located multi-let industrial estate sits on a 50 acre site and is one of the largest warehouse and distribution parks in the North West, with 679,845 ft² of internal space spread across 45 industrial units and two office buildings.
The property's premier location between the M60 orbital and M62 motorway serves the entire northern, eastern and western regions of Manchester, Yorkshire and Lancashire. It also benefits from strong transport links to Manchester City Centre, which sits just eight miles away, and to Manchester International Airport, 22 miles south of the property.
This acquisition is directly in line with the Fund's strategy to acquire dominant multi-let commercial properties in growth locations, with the industrial sub-sector proving particularly attractive. Stakehill Industrial Estate represents the 13th industrial property in UBS Triton’s portfolio, which comprises 33 high-quality assets overall, with approximately half located in the South East of the UK. In addition to the industrial sector, the Fund is also weighted to retail warehousing, offices, and more recently, student accommodation.
Howard Meaney, Head of Real Estate UK and Senior Portfolio Manager for UBS Triton, commented: “Stakehill Industrial Estate presented us with the rare and highly sought after opportunity to acquire a prime industrial asset of significant scale located in one of the country’s strongest distribution locations. With limited supply locally, the fully-let estate benefits from a diverse income profile, with a broad range of regional, national and international tenants, while the assorted accommodation styles on offer meet the demands of virtually all types of warehouse occupier. This high-performing asset also presents excellent value enhancement potential through asset management and rental growth, enabling us to target the best returns for our clients.”
UBS Triton was advised by Tudor Toone on this transaction.