Schroder acquires Manchester development site

Schroder Real Estate Investment Trust has acquired Stanley Green Trading Estate with an adjoining development site in Cheadle, South Manchester, for a total of £17.25m.

The estate comprises approximately 150,000 sq ft of warehouse accommodation across 14 units on a nine acre site and is let to 13 tenants, generating a total contracted rent of £960,000 per annum or an average rent of £6.55 per sq ft.

The estimated market rental value (‘ERV’) is approximately £1.25m per annum.

The average unexpired lease term, assuming all tenant breaks are exercised, is three years.

Some 97% of the rent due during the Covid-19 pandemic has been collected.

The apportioned price for the Estate of £14.4m reflects a net initial yield of 6.3% and a reversionary yield, based on the ERV, of 7.1%.