North Road, Yate
In November 2020, our investment agency team advised South Gloucestershire Council on the freehold acquisition of industrial premises at 26 North Road.
The 47,685 sq ft property, set on a 3.1 acre site, was being sold by way of sale & leaseback to Yate Disposables Ltd who took a new 10 year lease at an initial rent of £320,000 per annum rising to £353,305 per annum at year 5.
The team set out a clear investment rationale in support of the acquisition. The investment presented an attractive income return and offered a number of asset management opportunities. The acquisition provided the opportunity for the Council to support a local business and the wider local economy within the South Gloucestershire Council district, thereby fulfilling one of their other key priorities.
Alder King also provided building consultancy advice, undertaking a pre-acquisition building survey to support the Council’s investment decision.
The property was acquired for £4.62M reflecting a net initial yield of 6.44% rising to 7.11% in year 5.
Following the acquisition, Alder King made a strategic approach to the adjoining land owner of 24-27 North Road, seeking to buy in this property to create a larger ownership and improved site layout with greater frontage to North Road. The property comprised 6,540 sq ft of industrial/offices on a 0.65 acre site. The property was multi-let to Yate Car Sales Ltd and GR Auto Services Ltd generating a combined rent of £66,936 per annum.
In April 2022, the property was successfully acquired on behalf of the Council for £1.1M reflecting a net initial yield of 5.75%.