Frogmore, the leading UK real estate fund manager, has completed the disposal of Stuart Road industrial estate in Altrincham to the specialist commercial property investment manager, Orchard Street Investment Management (‘Orchard Street’), for £9.15 million. The acquisition, which Orchard Street has made on behalf of St. James’s Place Property Unit Trust, reflects a net initial yield of 6%.
The 94,896 sq ft asset comprises nine modern industrial and warehouse units and is located on Altrincham Business Park, eight miles south of Manchester city centre. Currently fully let to six tenants with a WAULT of 5.8 years the industrial estate produces a rental income of £578,428 per annum.
Strategically positioned within the thriving North West industrial market the estate benefits from its close proximity to M60 and M56 motorways, Manchester airport and the Metrolink Light rapid Transport System.
Built within the last 14 years, the asset comprises two terraces of modern warehousing units with integrated office accommodation and offers a number of asset management initiatives including regearing and reletting of current leases.
John Humberstone, Partner at Orchard Street, commented:
“Stuart Road is a prime multi-let industrial estate situated in an established and popular business location. The North West is a successful and dynamic industrial market and we expect occupational and investor demand for high quality UK industrial and logistics assets such as this, to remain strong.”
John Matthews, Asset Manager at Frogmore, commented:
“This sale underlines the quality of the asset and highlights the continued surge in investment activity within the industrial sector. The levels of interest have been sustained whilst occupier demand in the North West remains above the national average making the region one of the most space constrained markets in the UK.”
Dowley Turner Real Estate acted for Orchard Street and CBRE acted on behalf of Frogmore.
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Orchard Street Investment Management
Established in 2004, Orchard Street Investment Management LLP is a leading specialist commercial property investment manager, focused on the UK market. It acts on behalf of institutional clients world-wide to advise on investing in and the active management of property assets, including industrial, retail warehouses, offices and shopping centres. Orchard Street currently has assets under management exceeding £4 billion.