St. Modwen has acquired Southern Gateway, a prominent multi-let industrial estate off Speke Boulevard in Merseyside from asset management group Gresham House for £7.25 million, reflecting a yield of 11.89%.
The 368,000 sq ft industrial estate, a former Glaxo Smithkline manufacturing and distribution facility, extends across a 17.3-acre site in Speke. It is multi-let to a range of tenants including Shop Direct and Nerudia and generates £917,000 of annual rental income.
David Nuttall, Development Manager for St. Modwen, said: “This investment typifies our ongoing strategy of acquiring assets that demonstrate excellent potential for further value generation and in turn, growing our commercial development pipeline.
“Southern Gateway is close to Jaguar Land Rover and Liverpool John Lennon Airport, is on a major arterial route and has around a third of a kilometre of road frontage. It will therefore provide a variety of options for St. Modwen moving forward.
“As part of our ongoing strategy, we are actively looking for further opportunities in the region, including both land and income producing assets in order to grow our pipeline of commercial and residential development sites.”
Southern Gateway is approximately seven miles south of Liverpool City Centre off the A561 dual carriageway, the principal southern gateway into Liverpool as well as providing access to junction 6 of the M62 (via the Knowsley Expressway) and junction 12 of the M56 (via the Runcorn/Widnes Mersey Crossing Bridge).
GVA and Pinsent Masons acted for St. Modwen. JLL acted for the vendor.