Cording sells Manchester Industrial Estate to AEW for £6.3 million
Cording Real Estate Group, the Northern European real estate investment management firm, has sold Kayley Industrial Estate near Manchester to AEW UK Core Property Fund for £6.3 million, reflecting a net initial yield of 8.3%.
Located at Richmond Street in Ashton-under-Lyne, the freehold multi-let Kayley Industrial Estate comprises 36 units, totalling 229,075 sq ft, on a 9-acre site. The current passing rent equates to £3.53/sq ft.
Michael Shears, Assistant Portfolio Manager, AEW UK Core Property Fund, said, "The east Manchester industrial market is characterised by a substantial lack of stock, and Kayley Industrial Estate provides an exciting opportunity to significantly increase rental income through letting the vacant accommodation".
The units of varying ages and sizes are let to 18 tenants, producing a total rent of £579,873 per annum.
Kayley Industrial Estate is the second 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%. In November 2017, Cording sold Tyseley Business Park in Birmingham for £13.7 million, reflecting a net initial yield of 6.75%.
The remaining four estates are located at Wigan, Littlehampton, 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 a second asset in the portfolio".
Cording was advised by JLL and AEW was advised by Tudor Toone.