Cording sells Wakefield industrial estate for £14.0 million
Cording Real Estate Group, the Northern European real estate investment and asset management firm, has sold Greens Industrial Estate in Wakefield to Paloma Capital for £14.0 million, reflecting a net initial yield of 8.55%.
Located on Calder Vale Road, the multi-let estate comprises 21 industrial units and a three-storey office building, totalling 345,000 sq ft, on a 21-acre site. The estate is let to 16 tenants with six vacant units, producing a total rent of £1.27 million per annum.
Greens Industrial Estate is the fourth 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%; in March 2018, Cording sold Kayley Industrial Estate near Manchester to AEW UK Core Property Fund for £6.3 million, reflecting a net initial yield of 8.3%; and in September 2018, Cording sold Lineside Industrial Estate in Sussex to Legal & General Investment Management for more than £20 million, reflecting a net initial yield of c. 5.25%.
The remaining two estates are located at Wigan and Wolverhampton. At Hindley Green Business Park in Wigan, Cording last month let 107,800 sq ft of newly-refurbished industrial space to Corenso UK Limited.
Adam Crickmore, Fund Manager at Cording, said: “Following a number of very good results for the fund, we have again proved our business model of adding value through strong implementation of solid business plans and good asset management initiatives.
“The sale of Wakefield follows the successful implementation of our strategy with significant capital expenditure invested, which reduced the level of voids and led to higher rents and longer lease lengths”.
Cording was advised by Colliers International and Paloma Capital was advised by BNP Paribas.