A sale price of just under £1 million has been achieved for 11 units on an industrial estate in central Birmingham, thanks to property agents Siddall Jones.
The properties on Klaxon Industrial Estate, off the main A41 Warwick Road in Tyseley, were sold for £950,000 to LWJ Estates Ltd, with contracts exchanged and completed within eight weeks.
The units, with a total space of around 49,000 sq ft on ground, first and second floor levels, are already bringing in rents of more than £95,000 a year, a yield of over 10% based on the sale price.
But it is estimated that this rental could easily grow to more than £122,000 a year when the estate is fully let, which would result in an increased yield for its new owners of nearly 13%.
Ryan Lynch, associate director of Siddall Jones, explained that the off-market disposal had been arranged on behalf of a vendor who had owned the 11 units for more than 20 years.
Solicitors Hadgkiss Hughes and Beale advised the buyer, and Stocktons acted for the vendor.
Mr Lynch said: “We are pleased to have arranged a sale that’s provided both the vendor with a very satisfactory price and the purchaser with attractive rental yields, and the prospect for a healthy yield increase.
“This deal shows that demands in industrial property market continue to be strong, with landlords looking for solid rental opportunities that still exist within the Birmingham marketplace.”
The 11 units on the Klaxon Industrial Estate have external space for car parking, and all but one benefits from three-phase electricity and gas-fired heating. There is a lift at two of the multi-floored units.
