Developer seals £4 million Steelpark deal
A trading estate, speculatively developed by a West Midlands property company, has been sold in a £4 million deal, it was announced today.
A London-based private investor has acquired units 2-4 Steelpark Trading Estate, at Wednesfield near Wolverhampton, from development and investment company Goold Estates.
The development of six units was completed last year. Three units were sold to owner-occupiers with units 2, 3 and 4 let to Smiths Metals, Zurich Insurance Group and Cooper Coated Coil.
Dominic Goold, director of Goold Estates, said: “This deal is a great investment for the buyer. Steelpark is a high-quality development with good transport connections so we were confident that there would be strong demand from investors.
“We have demonstrated our ability to take a difficult site, which had been vacant for many years, through a planning, construction, and letting phase and on to the successful sale of the investment.
“It is good to see our confidence in this speculative development repaid, with significant investment and new jobs also generated in the area. We are now looking for similar development opportunities in the region.”
All six Steelpark units were let or sold within just a few months of construction reaching practical completion.
Dominic added: “Strong demand for quality units like these meant we were able to negotiate RPI-linked rents increasing from £6.70 per sq ft to £7.20 per sq ft over the course of the letting process. These rents are supported by long-term leases to strong covenants.”
Investment agent Adam Ramshaw, regional director of Lambert Smith Hampton (LSH) in the Midlands, advised Goold Estates on the deal.
Adam said: “Despite the uncertainty Brexit has created in some areas of the commercial property market, the sale of Steelpark demonstrates that demand still exists for well let, modern industrial stock. Investors were drawn to the strong income and leasing profile of the scheme together with the quality of the real estate that was developed by Dominic and his team.
“In a sector characterised by tight supply, I’m confident this will prove to be a great long-term acquisition for the purchaser.”
Dominic added: “We are very grateful for the support of our professional team, including Lambert Smith Hampton and Gowlings who, with the help of Wolverhampton City Council, did an excellent job in bringing this development to a successful conclusion.”
If you want to read more about Steelpark, take a look at our articles on the second occupier being secured or the hattrick of deals for Steelpark.