European fund manager Protego Real Estate Investors has bought a £33m industrial estate.
Protego bought the 47-acre Clifton Moor Industrial Estate in York from British Land at an initial yield in excess of 6.5% and an equivalent yield of 7.3%.
The site is one of York’s main industrial locations, comprising 84 buildings and around 430,000 sq ft of industrial and office space.
The estate is multi-let to tenants including Network Rail and Jewson, generating a rental income of £2.3m per annum on rents of around £5.18/sq ft.
Nick Pink, managing director of UK investment at Protego, said: ‘The acquisition presents a rare opportunity to purchase a high quality estate in an area of constricted supply and which provides opportunities to drive value over both the immediate and the longer term.'
Strutt & Parker national markets investment partner James Fairweather, who acted for Protego, said: ‘The acquisition of this dominant multi let industrial estate has taken place in a shifting market where investor sentiment in UK commercial property is low. However, the rental growth and on-going management opportunities on this property provide excellent future prospects for the total return from this investment.’