LONDON, UK: Wynnstay, a property investment company, has announced that it has agreed to buy two industrial properties from the Gunne family for £2.525 million. The properties are located in Banbury and Stevenage and are leased to trade counter businesses.
The Banbury property consists of two freehold buildings with service yards and an access road. It generates a rent of £103,425 per year and has a net initial yield of 6.0 per cent. The yield is expected to increase to around 7.0 per cent after a lease renewal or reletting in 2025 and a rent review in 2026.
The Stevenage property is a mid-terrace industrial unit on a 999-year lease at a nominal rent. It has a single tenant that pays £57,550 per year and has a net initial yield of 6.0 per cent. The yield is projected to rise to 7.2 per cent after a rent review in 2026.
The total cost of the acquisition, including stamp duty and other expenses, is estimated to be slightly less than £2.7 million. Wynnstay will fund the purchase mainly from its cash resources, with about one-third coming from existing borrowing facilities.
The acquisition is expected to complete at the beginning of 2024. Wynnstay said that the deal will enhance its portfolio and provide attractive returns to its shareholders.
Chris Betts, Managing Director of Wynnstay, said: “The acquisition of these highly accessible and well-let properties broadens the geographic spread of Wynnstay’s portfolio and enhances our focus on the growth potential of the light industrial/trade counter warehouse sector.”
Wynnstay Group acquires Tamar Milling, a blended feed products company