Telford business park sold for £8.25 million
A Telford business park which is home to about 50 units has been sold for £8.25 million.
Parkhill Estates has sold Ketley Business Park to industrial investor IO Group, reflecting a net initial yield of 6.72 per cent.
The park, off Waterloo Road, is a 10 acre site comprising units let to a variety of industrial, light industrial, office and storage operators.
Parkhill recently completed a 15,000sq ft new build on site, let to MKM Building Supplies Limited for 20 years.
The MKM Telford branch became the builders’ merchant’s first unit in Shropshire, staffed by about 18 people.
More than 50 per cent of the remaining tenants are from the construction industry.
Parkhill Estates has owned the business park since 1982 and has recently completed an extensive asset management programme.
The entire estate currently has one vacant unit, and currently produces an annual passing rent of about £592,000.
The letting of the MKM unit has seen rents rise from £4.25 to £6 per square foot.
Sam Cornes, CEO at Parkhill Estates, said: “This was a strategic disposal to take advantage of current investor demand for multi-let industrial assets and will, I’m sure, be a positive addition to IO’s growing portfolio.”
Parkhill Estates is one of the West Midlands’ largest landowners and has recently enhanced its development credentials with the launch of a speculative 440,000 sq ft industrial scheme, Iron Park, between Birmingham and Wolverhampton.
For further information visit parkhillestates.co.uk