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24.06.2008
Gerald Eve’s Leeds office has advised Zurich Assurance, via Threadneedle, in the sale of a multi-let industrial investment in Sheffield, to Hunter Property Fund Management for £5.05m, reflecting a net initial yield of 7.16%.
Parkway Industrial Estate is a dated secondary estate comprising six units of varying sizes and totalling circa 108,000 sq ft. Five of the six units were let on varying lease terms to a mix of local, national and international covenants, off rents ranging from £3.80 per sq ft to £4.20 per sq ft, with a total passing rent of £422,450 pa. The final unit was vacant and in need of substantial refurbishment to bring it up to a lettable standard.
Gerald Eve investment associate Nicky Visick comments: “This sale for Threadneedle continues its strategy of disposing of secondary industrial property with few value-enhancing opportunities in view of the strong possibility that yields will continue to soften for this type of asset. Threadneedle would have been facing considerable void costs and letting risks moving forward, and we were able to mitigate this with a proactive targeted marketing campaign.”
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