Glenbrook Investments has completed the acquisition of two sites in Sandbach in a sale and lease back with Metal Fabricators Ltd, achieving a Net Initial Yield of 11%.
This deal is the latest in a series of transactions for Glenbrook Investments with the £2.83million acquisition of Eastgate Retail Park in Accrington and the £895,000 disposal of No. 1 Dock Road in Birkenhead, all completed in the last month with further deals in the pipeline.
The sites on Hall Lane and Moston Road total 4.1 acres and comprise 79,000 sq ft of warehouse and manufacturing accommodation supplying small, medium and large engineered components to a number of industries globally, including construction, power generation, rail, nuclear and recycling.
Speaking about the deal, Scott Griffiths, investment director at Glenbrook, commented: “This acquisition has many attractive features including a low rent, unbroken 15-year term and rental growth linked to the Retail Price Index (RPI) collared at 2% per annum compounded. We were also impressed by the strength of the management team and the innovative nature of the business, which has been safely operating 24/7 during lockdown servicing new clients with a full order book. We would welcome conversations with other companies seeking to release capital from operationally critical assets.”
OBI represented Glenbrook whilst LSH acted on behalf of the vendor.
The sites were acquired for an undisclosed sum.