Henley has completed the freehold sale of Quadrant Point, Staffordshire, a 5.2 acre modern industrial site, to Atlantic Leaf Properties for £10.8 million.
Established in 2003, Quadrant Point comprises two main industrial buildings and three ancillary office buildings, extending to 165,100 sq ft in total. The property is fully let to Gestamp Tallent Limited (‘Gestamp’), a leading developer of chassis and suspension products and systems for the global automotive industry, on a ten year lease expiring in 2025. Gestamp’s customers include Land Rover, BMW, Ford and Honda.
Henley agreed a sale in excess of the initial guide price, generating a yield of 6.96 per cent and representing a deal IRR of around 21.90 per cent and cash multiple of 2.21X. Established in 2006, the private equity real estate firm currently has an average deal IRR of 48 per cent and cash multiple of 1.91X.
Commenting on the sale, Ian Rickwood, Chief Executive Officer of Henley, said:
“The industrial investment market remains in high demand from a variety of investors, from both the UK and abroad. Having acquired our commercial portfolio of Deep Value assets from 2009-13, and carried out active asset management, we are now content to capitalise on the appetite for stock and exit our positions. This is our seventh disposal in the last few months. We have achieved another highly successful investment for our investors, which is yet further evidence of our proven asset management and market strategy. Our total all deal return continues to be above a 40% IRR.”
Quadrant Point is located in Cannock, one of Staffordshire’s main commercial and industrial centres – 15 miles to the north-west of Birmingham.
1 Dec 2015 | Article by PJ Appleton, Clare Hartshorne – Redwood Consulting