Schroders, acting on behalf of Multi-let Industrial Property Unit Trust, has completed the acquisition of Aerodrome Way Industrial Estate, a well-established Greater London multi-let industrial estate situated to the north-east of Heathrow Airport for €19.57m (£17.45m). The purchase price equates to an initial yield of 4.45%. The estate comprises 10 units totalling 78,760ft² and is currently let to seven tenants providing attractive income diversity, with no tenant accounting for more than 23% of the rent.
Aerodrome Way offers good quality accommodation in the Heathrow and West London industrial markets offering good prospects for rental growth. The estate provides a current passing rent of €925,512 (£825,184) per annum or €11.75 (£10.48) per ft² including the rent guarantees.
Chris Saunders, Fund Manager at DTZ Investors, comments: “Aerodrome Way has performed well since its acquisition in 2012 and the disposal fits within the fund strategy. We generated a very strong interest in the property given its Heathrow/ Greater London location and the potential for further rental growth. As a house, we continue to seek Investment opportunities across all sectors to grow our funds under management.”
Charles Howard, Partner in Business Space Investment at Cushman & Wakefield, comments: “The multi-let industrial investment market continues to be characterised by strong investor appetite particularly for Greater London locations. The existing vacancy and active asset management potential at Aerodrome Way allowed us to capitalise on investor appetite seeking short-term business plan delivery and longer-term asset value growth.”
Cushman & Wakefield acted for DTZ Investors and JLL acted for Schroders.
