Knight Frank assist in £5.8m Leeds industrial estate deal

Knight Frank, a Global property consultancy that works throughout Yorkshire, recently advised on a £5.8m industrial property deal in Leeds.

The Leeds office of Knight Frank guided CBRE Global Investors during the sale of the 103,545 sq ft Wellington Road Industrial Estate to a joint venture between investment companies Black Rock and Canmoor.

The global real estate services provider Savills also acted on the purchaser throughout the transaction.

The deal displays a capital value of £56 per sq ft and a net initial yield of 6.5%.

Located to the west of Leeds city centre, Wellington Road Industrial Estate is a multi-let industrial park, with major tenants including Pendragon and Royal Mail.

11% of the park is vacant providing opportunities for the purchaser to add value.

Rebecca Farnsworth, investment partner at Knight Frank in Leeds said: “The region lacks many multi-let industrial opportunities of any significant lot size and this sale attracted strong interest. With yields ever strengthening in the South East, we are continuing to see increasing demand from investors into the Yorkshire region seeking greater returns.”

Simon Lister, investment director at Savills, added: “With an average unexpired lease term of 24 years and significant asset management opportunities to improve the running yield, our client will be able to drive the performance of this asset. It is one of very few industrial estates under single ownership in the area and there may also be potential for higher value uses such as retail or residential in the longer term, subject to the necessary consents.”

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