The strategic sale of an Enterprise Rent-a-Car facility in Trafford, Manchester, signifies the robustness of the industrial real estate market in the UK. Capital investment in open storage assets, as shown by this recent transaction, continues to attract significant interest from investors.
Details of the Transaction
Wain Estates has successfully completed the sale of a prime open storage facility for over £2.6 million. Situated on a spacious 5.9-acre site along Flixton Road, the facility includes a 15,000 sq ft building. It is currently under a 125-year lease to Key Leasing, with Enterprise Rent-a-Car UK occupying the space through a sub-lease, leaving over 13 years unexpired.
The transaction, yielding a net initial rate of 4.68%, underscores the lucrative potential of industrial investments in the area. Such metrics highlight a favourable market environment for prospective buyers looking for long-term income opportunities.
Strategic Importance of the Location
The sold asset is located within the expansive Carrington Estate, one of the UK’s most ambitious regeneration schemes. The New Carrington Vision aims to provide more than 4,300 homes and 4 million sq ft of employment space.
With the estate’s proximity to the M60 and other significant transport links, it positions itself as a major employment hub in the North West. This geographical advantage enhances the appeal of the Carrington Estate to both investors and businesses.
Wain Estates’ decision to sell aligns with larger plans to optimise returns on their investments, leveraging the area’s strategic importance and development potential.
Investor Interest in Industrial Open Storage
According to John Burrows, Investment Director at B8RE, the industrial open storage sector is gaining substantial investor interest.
This transaction attracted 14 competitive bids, exceeding the initial asking price, which reflects a 6.0% net yield interest. It further cements the sector’s reputation for delivering attractive returns.
The appetite for assets like these stems from their potential for steady income and value appreciation in a thriving market. This is indicative of broader trends in industrial investment strategies across the UK.
Role of B8RE in Facilitating the Sale
B8RE played a pivotal role in facilitating the transaction, acting on behalf of Wain Estates to market this prime asset.
The consultancy’s strategic marketing approach ensured that the facility captured the interest of diverse investors, leading to a favourable bidding process.
B8RE’s expertise in industrial property transactions has been instrumental in achieving a successful sale, showcasing their proficiency in the field.
Future Prospects for Carrington Estate
The Carrington Estate is set to become a landmark development, with over 2 million sq ft of industrial space moving through planning stages.
The estate’s excellent transport links and developing infrastructure are poised to attract significant commercial activities, potentially increasing its value over time.
Developments here underscore a positive outlook for property values and investment yields, marking the estate as a key player in the region’s economic landscape.
Conclusion of the Transaction
The sale of the Enterprise Rent-a-Car facility to a private property company marks a significant milestone for Wain Estates.
This transaction reflects a broader trend of enhanced interest in industrial assets, offering both long-term income and strong capital growth potential.
The successful sale underscores a vibrant market for industrial properties, with strategic assets in prime locations attracting keen investor interest. It highlights the enduring appeal of the Carrington Estate as a future economic powerhouse.