Stenprop, the UK multi-let industrial property investor, has acquired an industrial estate in Bridgwater, Somerset, in an off-market deal from a private investor for £4.8 million, which reflects a net reversionary yield of 6.9%.
Dunball Industrial Estate is a modern estate, which is strategically located just off junction 23 of the M5. Stenprop has acquired four terraced units, totalling 48,432 sq ft of industrial space. Three of the units are let to Scania, Wincanton and Astigan and one is vacant.
The weighted average unexpired lease term is 2.5 years to lease expiries and 1.7 years to lease breaks. The total annual passing rent of £245,000 equates to a low average rent of £6.74/sq ft.
Julian Carey, Executive Property Director of Stenprop, said: “This is an excellent addition to our portfolio in a region where we were underweight. Dunball Industrial Estate has a strong letting history, with opportunities for immediate rental growth and a strong tenant line up. The wider Bridgwater area is undergoing a period of change with the development of the nuclear power station at Hinkley Point C, which will create 25,000 jobs and increase industrial demand in the short, medium and long terms”. Hartnell Taylor Cook advised Stenprop on the acquisition. The vendor was a private client of Neil Frais Kelly.