B8RE Completes £2.61M Sale of Enterprise Rent-A-Car Facility

The deal highlights strong investor appetite in the industrial open storage sector

 Acting on behalf of strategic land company Wain Estates, industrial and logistics property consultancy, B8RE has completed the investment sale of a prime open storage facility in Trafford, Manchester, in a deal worth in excess of £2.6million.

Located on a 5.9-acre-site on Flixton Road, the 15,000 sq. ft building is let to Key Leasing Ltd on a 125-lease with 92 years remaining. The asset is currently occupied by Enterprise Rent-a-Car UK Limited on a sub-lease with 13.25 years unexpired. The transaction achieved a net initial yield (NIY) of 4.68%.

The asset is located within the Carrington Estate, one of the largest regeneration projects in the UK.   Spanning across 1,665 acres the New Carrington Vision will deliver over 4,300 homes, 4 million sq. ft of employment space, improved local amenities and upgraded sustainable transport links.

This disposal follows on from the appointment of B8RE as industrial agents to market the industrial offering at Carrington.  With over 2m sq ft of industrial space currently being brought through planning, together with excellent transport links to the M60 and beyond, the Estate is set to become the next major employment destination within the North West.

Speaking about the disposal, John Burrows, investment director at B8RE, commented: “The industrial open storage sector is attracting significant investor interest at present, a trend which is evidenced by this transaction.

“This opportunity caught the attention of the investor market as it offered long income in an excellent location, with future asset management opportunities for the purchaser. After launching the asset to the market, we received an impressive 14 bids and achieved in excess of the asking price, which was originally quoted at £2.04million, equating to a 6.0% yield.”

The asset was sold to a private property company.