On behalf of Aviva Investors, Colliers International has completed the acquisition of the Thyssenkrupp Aerospace at the Walton Summit Industrial Estate in Preston from M&G Investments, for £7.29 million, reflecting a net initial yield of 7.65 per cent.
The 147,000 sq ft modern distribution warehouse and ancillary office building is let to ThyssenKrupp Aerospace UK Limited, worldwide supplier of metals and other materials to the aerospace, defence and high technology industries, for a further five years, at a passing rent of £590,000 per annum and a low capital value of £47 per square foot. It is located at Preston’s principal industrial estate adjacent to the M6 motorway, 30 miles north of Manchester.
John Hanson, Director, National Investment, Colliers International, said, “ThyssenKrupp are an established business in Lancashire and are committed to this location. Walton Summit Industrial Estate has attracted a number of national occupiers and has a limited vacancy. The subject property benefits from good property fundamentals and strong re-letting prospects”.
“Whilst the summer months have historically been a quiet period for commercial property investment transactions, investor’s appetite for industrial investments continues to be very strong. We are experiencing a greater focus on strong performing regional markets where a more attractive yield can be achieved in comparison to the South East. We are delighted to have advised Aviva on this successful acquisition.”
Colliers International advised Aviva Investors. Jones Lang LaSalle advised the vendor, M&G.