Industrials REIT has completed two multi-let industrial (MLI) acquisitions for a combined £17m, reflecting a blended net initial yield (NIY) of 5.8%.

Beacon Business Park

Beacon Business Park

The purchases add 173,000 sq ft of space and £1.06m of annualised rent to the company’s portfolio.

Beacon Business Park in Caldicot, Wales, was acquired for £7.9m, reflecting a NIY of 6% and a capital value of £87/sq ft.

The property comprises 90,847 sq ft of MLI space across 23 units ranging in size from 1,000 sq ft to 25,000 sq ft and generates an annual rent of £506,720, equating to £5.73/sq ft.

The estate is 97% occupied and the vendor is providing a six-month guarantee on the vacant unit, which has already generated strong interest.

At Belmont Industrial Estate, Durham, a further three industrial terraces comprising Redlake House, Ottery House and Waldon House have been acquired for a combined value of £9.11m, reflecting a NIY of 5.7% and a capital value of £110 psf.

These acquisitions add a further 31 units across 82,538 sq ft of MLI space and generate an annual rent of £550,000, reflecting an average rent of £7.71/sq ft.

The three additional terraces are 87% occupied by 26 tenants and the vendor is providing a six-month guarantee on the vacant units.

Will Lutton, head of investment at Industrials REIT, said: “With these acquisitions we have added a new, high-quality MLI estate to our portfolio, as well as consolidating our holding at Belmont Industrial Estate in Durham.

“We have identified several opportunities to grow income and asset value from these estates by leasing the existing vacant space using our Industrials Hive operating platform.”