Northern Euroepan real estate investment firm Cording Real Estate Group has acquired a portfolio of predominantly industrial properties in Wales for £33.4 mln (€38 mln) from Newport-based RH Properties.
The deal, which comprises six industrial properties, a hotel and a leisure asset, reflects a net initial yield of 8.5%.
'This portfolio is the type of investment we target for our income strategy,' commented Mark Millar, Cording's head of UK and Investment. 'It is underpinned by secure, long-term income but offers us the opportunity to apply our asset management skills to refurbish and lease vacant space and renegotiate lease terms with the existing occupiers.'
The industrial assets are a mix of single and multi-let units in South Wales totalling 852,000 ft2 (79,000 m2), with a weighted average unexpired lease term (WAULT) of more than nine years.
They are two units in Swansea let to Trojan Electronics and Unit Superheater Engineering, a unit in Merthyr Tydfil let to Amnitec, a unit in Abercarn let to Smurfitt Kappa, a unit in Cwmbran let to Zodiac Seats and a multi-let unit in Blackwood.
The hotel property in the centre of Newport is let to Travelodge Hotels for a further 17 years while the leisure asset is Leisure@Cwmbran in the town centre, with tenants including a Vue cinema, a Frankie & Benny’s restaurant and a Bowlplex bowling centre. Thy have a combined WAULT of 13.3 years.
The vendor was advised by Allsop.
