(Alliance News) - Highcroft Investments PLC on Monday said it has completed its acquisition of three warehouse units in Aberdare, South Wales.
The acquisition of the freehold interest of units 12, 13 and 14 of the Aberaman Industrial Estate was completed through Highcroft's property owning subsidiary Rodenhurst Estates Ltd.
The three units, which combine to create one large unit totalling 81,000 square feet, were acquired from Clear Partnership.
The unit occupies a site of 4.45 acres and has an additional ancillary car park. The property is fully let to Fiberweb Geosynthetic Ltd with the guarantor being Chicopee Holdings BV. The tenant is part of the Berry Global Group, a plastic product manufacturer, which has been listed on the New York Stock Exchange since October 2012.
The property has been acquired for GBP3.7 million exclusive of costs, which represents a net initial yield of 8%. The acquisition will be funded by using part of the cash held from the sale of Llantrisant, which had occurred in February.
Highcroft Chief Executive Paul Leaf-Wright said: "We are pleased to have redeployed part of the proceeds of GBP7.9 million, received from the recent sale of our Llantrisant property, into a quality income producing asset that complements the existing portfolio. It builds on our strategy of adding to the long-term income of the company to ensure we deliver attractive earnings to our shareholders with defensive assets that offer both rental and capital growth. The lease term improves our overall weighted average unexpired lease term."
The board will look to deploy the remaining proceeds.
Shares in Highcroft were untraded in London on Monday morning, last quoted at 915.00p.
By Emma Curzon, Alliance News reporter
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