(Alliance News) - Property investor Hansteen Holdings PLC said Wednesday it has acquired a portfolio of seven multi-let industrial estates in Newton Aycliffe Industrial Estate in Durham, for GBP12.0 million, reflecting a net initial yield of 8.5%.
The portfolio was bought from investment manager M&G, comprises 53 units totalling 341,62 square feet, with contracted rental income at GBP1.1 million per annum with a total current estimated rental value of GBP1.3 million per year.
The units are currently let to 40 tenants, which are a mix of local, regional and national companies, on 45 leases.
"This purchase fits our acquisition criteria perfectly, being significantly below replacement cost, with low rents capable of further growth, vacant units and in an area where we have significant holdings and a regional team that can add real value," said Derek Heathwood, UK property director.
Shares in Hansteen - which is headquartered in London - were up 0.4% at 102.80 pence on Wednesday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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