AEW UK Core Property Fund is pleased to announce that Kayley Industrial Estate in Ashton-under-Lyne is now fully let, following an agreement with G2 Fabrication to occupy the remaining 18,000 sq. ft. unit. Avison Young acted on behalf of AEW as letting agent.
AEW purchased the 230,000 sq. ft. multi-unit estate in January 2018 when the void rate was in excess of 35%. Following substantial investment by AEW and proactive management of the asset, the estate has been considerably improved and six new tenants have been attracted to the estate and signed long term leases.
Over the two-year period since acquisition, AEW has invested more than £650,000 on refurbishment, including external cladding and redecoration works as well as upgrades to the drainage and roof systems. There are plans to spend a further £500,000 on external works over the next two quarters. Avison Young’s building surveying team is retained to project manage the work.
In addition, AEW has recently secured planning permission to demolish a number of older units fronting the estate and replace them with a 16,000 sq. ft. new build scheme. This will provide an additional six units. Works are due to commence next quarter.
The new units will range from 1,500 sq. ft. to 5,000 sq. ft. and will be ideally suited to trade counter uses. Construction is due to complete in Q4 2020.
Henry Butt, Asset Manager at AEW said: “We acquired Kayley Industrial Estate back early in 2018 as we saw the potential to increase the income through new lettings and lease renewals in what was an already well-established estate. We knew that by refurbishing the vacant units we could provide good quality efficient space to match the occupier demand in the area for a range of unit sizes.
We are pleased to announce that the estate is now fully let. To continue our strategy, we are excited to begin construction of a new 16,000 sq. ft. site on the front of the estate, which will further improve the overall offering to local businesses as well as the rental potential of the asset and subsequently the fund’s return to its investors and stakeholders.”
AEW UK Core Property Fund has also recently acquired the neighboring Whitecroft Lighting headquarters, factory and warehouses and will be exploring the potential synergies of the two sites.
Simon Hampson from Avison Young, who acted on the recent lettings, said: “Kayley Industrial Estate has been extremely successful, which is largely due to the commitment and investment that AEW has made to improve the scheme and attract new businesses.”