Leicester-based Midlands commercial property specialist Phillips Sutton Associates (Phillips Sutton) has advised on the acquisition of two multi-let industrial estates in the West Midlands.
Acting on behalf of London based Pears Property, Phillips Sutton has purchased Stafford 15 in Telford – a 1970’s industrial estate comprising 85,000 sq ft in 15 different units, for £3.1 million.
The estate is fully let, producing an income of £327,000 per annum, which shows Pears a net initial yield of 10 per cent. The vendor, Granite Estates,was represented by Knight Frank.
Meanwhile, acting jointly with Darby Keye for London-based IO Asset Management, Phillips Sutton has bought Maple Leaf Industrial Estate in Walsall, for £2.85 million in an off-market deal.
Maple Leaf is a 14-unit estate of 82,000 sq ft and only 40 per cent of it is currently let. The joint agent was Darby Keye Property. The vendor was represented by Harris Lamb in Birmingham. Phillips Sutton is being retained by IO Asset Management along with Darby Keye and Harris Lamb to let the vacant units.
Sam Sutton of Phillips Sutton, said: “The industrial market continues to go from strength to strength , and we’re delighted to act for these two London-based property companies. These deals just go to show the levels of interest the London investment market has in the regions – and how invaluable our local knowledge is to them.
“We have noticed that there is a shortage of industrial units across the Midlands region, but in particular the East Midlands seems to be suffering more from a shortage of good quality industrial units. We have clients who are now gearing up for speculative development programmes.’
“We’re particularly pleased to acquire Maple Leaf Industrial Estate in an off-market deal and we’re looking forward to working closely with IO Asset Management to fill the remaining units on the estate.”