SWIP-Centurion JV captures 77,000m2 of UK industrial space

A joint venture between a SWIP fund and Centurion Properties has pulled off a significant industrial park investment in north-west England.

The SWIP Property Trust (SWIPPT) and Centurion Properties, the UK asset and development manager, have completed the acquisition of Deeside Industrial Park East, seven miles north west of Chester, from Universities Superannuation Scheme (USS).

The investment volume of £34 mln (almost €42 mln) reflects a net initial yield of 8% and a reversionary yield of 9.6%.

The deal coincides with the sale of 15,900 m2 of distribution space near London's Heathrow Airport to Prologis.

The 42-hectare site in Deeside comprises 49 units, totalling 827,500 sq ft (77,000 m2), with individual unit sizes ranging from 1,980 sq ft to 136,650 sq ft. There are 33 tenants, producing total annual rent of £2.8 mln, which equates to an average rent of £3.18/sq ft for the industrial space and £6/sq ft for the office space. The average weighted unexpired lease term is eight years.

The estate also has 11 vacant units, totalling 119,000 square feet, which reflects a vacancy rate of 15%.

Savills acted for SWIPPT and Centurion and JLL advised Universities Superannuation Scheme.

Headquartered in London with an office in Manchester, Centurion Properties is a UK real estate asset and development management company. Established in 2000 by Julian Rooth, Centurion Properties manages £300 mln of assets for property owners such as Scottish Widows Investment Partnership and Henderson Global Investors.

The £2.6 bn SWIP Property Trust is managed by SWIP (Scottish Widows Investment Partnership), now part of Aberdeen Asset Management.