Orchard Street Investment Management has completed the acquisition of Trinity Trading Estate in the southeast UK town of Sittingbourne for £29.25 mln (€37 mln), reflecting a net initial yield of 6.83%.
Orchard Street Investment Management has completed the acquisition of Trinity Trading Estate in the southeast UK town of Sittingbourne for £29.25 mln (€37 mln), reflecting a net initial yield of 6.83%.
The asset has been acquired on behalf of St James’s Place from Cornerstone Real Estate Advisers.
The 38,200 m2, multi-let estate occupies a site totalling 27.8 acres located close to Sittingbourne town centre.
The estate is currently let to 38 tenants with a weighted average unexpired lease term of 5.3 years. Key tenants include Magnet, Howden Joinery, Wolseley, Travis Perkins and Screwfix.
'This is a popular and well located trading estate which is reflected in its high occupancy and the quality of its tenants. The Estate provides a strong income yield as well as a number of asset management opportunities which we look forward to undertaking,' said Tom Chadwick, investment transactions manager at Orchard Street.
'Having originally acquired this estate in 2005, the conclusion of this sale realises a healthy return for our client and demonstrates Cornerstone’s strong asset management track record in the sector over a long term hold period,' added Darren Hutchinson, director of fund management at Cornerstone.
Orchard Street was advised by Deloitte Real Estate. Strutt & Parker acted for Cornerstone Real Estate Advisers.