Cording sells Birmingham industrial estate for £13.7 million
Cording Real Estate Group, the Northern European real estate investment management firm, has sold Tyseley Business Park in Birmingham for £13.7 million, reflecting a net initial yield of 6.75%.
Located at Rushey Lane between the Jaguar Land Rover plants at Castle Bromwich and Solihull, the industrial estate comprises five units, totalling 350,558 sq ft, and has been sold to a private client of AHBN.
The units are let to three tenants on five leases, producing a total passing rent of £988,655 per annum.
Tyseley Business Park is the first asset to be sold from a portfolio of six UK industrial estates, which Cording acquired in March 2015 for £51 million, reflecting a net initial yield of 9.25%. The other five estates are located at Ashton-under-Lyne and Wigan in Greater Manchester, Littlehampton in West Sussex, Wakefield and Wolverhampton.
Mark Millar, Head of UK and Investment at Cording, said: “We have taken advantage of the continued investor demand for multi-let industrial estates to sell one of the assets in the portfolio. We acquired the portfolio as part of our income strategy. It has delivered strong returns through the opportunity to apply our asset management skills to extend leases, increase the income and offer a stabilised asset into the market”.
Cording was advised by Tudor Toone.