Parkhill Estates has sold Ketley Business Park in Telford to industrial investor, IO Group, for £8.25 million, reflecting a net initial yield of 6.72%. The park is a ten acre site comprising around 50 units let to a variety of industrial, light industrial, office and storage operators.
Parkhill recently completed a 15,000 sq ft new build on site, let to MKM Building Supplies Limited for 20 years from practical completion, with 5 year upward only rent reviews subject to a collar of 1% and cap of 3% per annum. Over 50% of the remaining tenants are from the construction industry.
Parkhill Estates has owned the business park since 1982 and has recently completed an extensive asset management programme. The entire estate currently has one vacant unit, and currently produces an annual passing rent of around £592,000. The letting of the MKM unit has seen rents rise from £4.25 to £6.00 per square foot.
Sam Cornes, CEO at Parkhill Estates, said: “This was a strategic disposal to take advantage of current investor demand for multi-let industrial assets and will, I’m sure, be a positive addition to IO’s growing portfolio.”
Allsop LLP represented Parkhill Estates while the purchaser, IO Group, was represented by Lambert Smith Hampton.
Parkhill Estates is one of the West Midlands’ largest landowners and has recently enhanced its development credentials with the launch of a speculative 440,000 sq ft industrial scheme, Iron Park, between Birmingham and Wolverhampton.