Cornerstone spends €41m to expand UK light industrial holdings

Cornerstone Real Estate Advisers has acquired 48,000 m2 of light industrial space in the UK in three transactions totalling £31.6 mln (€41 mln). The US-headquartered investor's light industrial portfolio in the UK now comprises 176,000 m2 with a value in excess of £140 mln.

The latest transactions relate to assets in Stockport, Newcastle and Sheffield.

The 13,470 m2 Castlehill Industrial Estate in Stockport comprises nine units and is located on junction 25 of the M60 motorway. It was acquired from BP Pension Fund for £9.2 mln, representing a 7.3% initial yield. The property is 100% let at below-market rents and has upcoming lease expiries which Cornerstone says will allow for a refurbishment and relet at a higher rent.

Gateway West in Newcastle is located very near the A1 motorway and only three miles from Newcastle city centre. The property was acquired from CBRE Global Investors for £12.7 mln, reflecting an 8.4% initial yield. The 15,400 m2 site was constructed in 2008 and is 93.7% let to a mix of tenants with an above average WAULT of 9.5 years.

The 19,500 m2 Parkhill Industrial Estate in Sheffield was acquired form Aviva for £9.7 mln, reflecting a 7.2% initial yield. The property is 88.0% leased to 16 tenants.

For the Castlehill transaction, Christopher Dee acted for the seller and B8 Real Estate represented Cornerstone. At Gateway, West GVA acted for the seller while Knight Frank advised Cornerstone. At Parkhill, Knight Frank acted for the seller with Strutt & Parker acting for Cornerstone.