Protego acquires York industrial estate for EUR 45m

Protego Real Estate Investors has announced the acquisition of the Clifton Moor Industrial Estate in York in the UK Midlands for GBP 33 mln (approx. EUR 45 mln.) on behalf of a retained client. The initial yield is over 6.5% with a 7.3% equivalent yield. Sold by British Land, the 47-acre site comprises 84 buildings, providing approximately 431,170 ft² (40,057 m2) of trade counter, industrial and office accommodation, a retail warehouse, cash-and-carry and car showroom, ranging in size from 872 ft² (81 m2) to 70,497 ft² (6,549 m2). Tenants include Network Rail, Jewson, RAC Plc, Booker and Wickes Building Supplies, with leases running to between March 2008 and March 2114. Rental income is GBP 2.23 mln (approx. EUR 2.93 mln) annually, equating to GBP 55.75 (EUR 73.31) per m².

Nick Pink, managing director of UK investment at Protego, said of the deal: ‘The acquisition of Clifton Moor Industrial Estate presents a rare opportunity to purchase a high-quality estate in an area of constricted supply and which provides opportunities to drive value over both the immediate and the longer term. Protego will continue to look for further opportune investments during the course of 2008.’

James Fairweather, partner at Strutt & Parker’s national markets investment team, which acted for Protego, added: ‘The acquisition of this dominant multi-let industrial estate has taken place in a shifting market where investor sentiment in UK commercial property is low. However, the rental growth and on-going management opportunities on this property provide excellent future prospects for the total return from this investment.’

King Sturge and Colliers CRE acted for British Land.