Buccleuch Property has successfully completed sales totalling £7.7m across three industrial assets in the South East of England and Yorkshire, generating strong yields and contributing to additional transactions during 2014.
With asset management complete at the three industrial properties, in Biggleswade, Newmarket and Castleford, and in light of the strong demand for good quality industrial investments, the decision was taken to realise disposals in order to re-invest the funds into new opportunities.
The assets that have been sold include a 60,000 sq ft distribution unit at Stratton Business Park in Biggleswade to Custodian Capital for £3.8 million, delivering a 7.5% yield. The modern distribution unit is currently under lease to Turpin Distribution until 2019 at a rent of £300,000 per annum.
The sale of Lynx Business Park at Newmarket was completed earlier this month for £2.3 million to Tilstone, reflecting a yield of 8.75%. The four adjoining modern industrial units have a current lease agreement with Tristel plc until 2023 for a rent of £216,000 per annum.
The third asset that has been sold is Yorkshire-based Sterling Industrial Estate in Castleford. A multi-let industrial estate, generating a rental income of £135,000 per year, it was sold for £1.585 million to a private investor reflecting a net initial yield of 8%
David Peck, managing director of Buccleuch Property commented: “We are witnessing strong demand returning to the industrial investment market across the UK, and are pleased with the sales secured and yields achieved. These deals, along with two previous industrial property sales earlier this year in Cambuslang and Hamilton are generating funds that we are actively looking to re-invest in new opportunities.”
Parties that acted on behalf of Buccleuch Property were: North Rae Sanders in Biggleswade; Bidwells in Newmarket; and Metcalf Harland in Castleford.
Notes to editors
About Buccleuch Property
Buccleuch Property (www.buccleuchproperty.co.uk) represents the commercial property interests of Buccleuch Group with the core of its business within investment, development, strategic land and residential.
With offices in Edinburgh and London, Buccleuch Property has a market exposure of £350m through a UK wide investment portfolio and a range of development sites with a pipeline in excess of two million sq ft.
Buccleuch Property has four strategic joint ventures with Native Land, Queensberry, Longrose Buccleuch and Audley Retirement covering the residential, leisure and retirement sectors across the UK.
The business also has a portfolio of strategic land opportunities together with joint ventures in the US and Germany.