One of Wolverton’s largest industrial estates has changed hands in a deal worth approximately £28 million.
Chancerygate has acquired the 192,000 sq ft Canon Industrial Park from Strathclyde Pension Fund, adding the multi-let industrial and trade counter estate to its investment portfolio.
The 12.35-acre site off Old Wolverton Road comprises 29 units and is let to 22 tenants. DTZ Investors, which managed the property for Strathclyde Pension Fund, said the £28m sale equated to a capital value of approximately £147 per sq ft.
Occupiers at Canon Industrial Park include Howdens, Travis Perkins, Bath Depot and Eurocell.
The estate had been brought to market earlier this year with offers sought above £28m and a net initial yield of 6.25 per cent. Marketing material put the passing rent at £9.73 per sq ft.
Chancerygate now sees opportunities to increase the value of the estate through rental growth and further refurbishment.
Simon Cowley, head of investment management at Chancerygate, said: “Canon Industrial Park represents an attractive opportunity to acquire a well-established logistics and MLI estate, with a diverse income from a strong base of national and local occupiers.
“The strength of tenant demand across the scheme makes it particularly well suited to Chancerygate’s investment strategy, which is focused on securing leading regional MLI assets.
“We see a number of opportunities to enhance the asset and generate additional value, from capturing near-term rental growth to progressing refurbishment opportunities across the estate.”
Canon Industrial Park is around three miles from central Milton Keynes and has access to the M1 and routes serving London, the South East and Midlands.
DTZ Investors acquired the estate in 2019 and has since invested in refurbishment work. It said the sale generated a strong outcome for its client after attracting significant interest from investors.
The acquisition also follows a major change of ownership at Chancerygate itself.
Canadian real estate asset manager Dream announced at the end of July that it had agreed to acquire Chancerygate, expanding its presence in the UK multi-let industrial property market.
As part of that transaction, Dream Industrial REIT agreed to acquire Chancerygate’s wholly owned real estate assets and interests in its managed ventures for approximately £78m, with further investment earmarked to complete development projects.
The combined platform has around 27 million sq ft of property managed or under development across Europe.
Cushman & Wakefield advised Chancerygate on the Canon Industrial Park acquisition. Newmark advised DTZ Investors on the disposal, with CMS providing legal advice.
Pictured: Canon Industrial Park in Wolverton, Milton Keynes, which has been acquired by Chancerygate for approximately £28 million.
