Hansteen acquires Birmingham business park

Hansteen Property Unit Trust has bought Saltley Business Park, Birmingham, from LPA Receivers acting for Lloyds Banking Group, for £23.29m. The deal to buy the estate represents a net initial yield of 9.62 percent.

The estate comprises a multi-let industrial estate totalling 1.08m sq ft in 22 units on a strategic, self-contained site of about 47 acres, on the eastern edge of Birmingham City Centre.

The site produces £2.35m annually and has eight vacant units, equating to 30% vacancy by area with the average unexpired lease term 3.1 years to expiry and 2.6 years to break options.

The acquisition presents several opportunities for adding value, by letting vacant units, re-gearing leases with existing tenants, upgrading and refurbishing units and reorganisation of underused car parking space. The deal follows the £27.7m acquisition of The Treforest Industrial Estate near Cardiff, from SEGRO, announced on December 24.