Construction firm Henry Boot said on Friday that it had purchased a multi-let industrial estate on the edge of Manchester for £5.8m, reflecting a net initial yield of 4.1%.
Henry Boot said its property development business, HBD, had acquired the City Court location, a 26,900 square foot industrial estate located on Poland Street in Manchester’s Ancoats neighbourhood, from Urban Splash and Pears Group, with the property already fully let to eight tenants, including Ticketmaster UK and Sky Telecommunications.
The London-listed group noted that the estate had a low average rent per square foot of under £10 and stated it offered “good” rental growth and asset management opportunities, with the group adding that it would also explore opportunities for “a significant urban residential development”.
HBD managing director Ed Hutchinson said: “City Court is the latest in a series of strategic acquisitions in 2021 for Henry Boot. The property is situated on a 1.3-acre site which forms part of the Ancoats and New Islington Neighbourhood Development Framework presenting an opportunity for future urban residential development.”
As of 0925 BST, Henry Boot shares were untraded at 278.0p.