AEW UK Long Lease REIT has acquired Pocket Nook Industrial Estate, St Helens for £9.0m reflecting a net initial yield of 5.4%.
The 16.1 acre site is let to three tenants and provides a weighted average unexpired lease term of 66 years to expiry, with 49% of the income let to Biffa Waste Services Ltd until 2134.
AEW Long Lease said the estate comprised two industrial units, a small office with a large yard and an area of storage land, with an additional unit currently under construction by the vendor and pre-let to Biffa.
It said 76% of the income was backed by the strong covenants of Biffa and the Driving Standards Agency on uncapped RPI linked leases that are reviewed 5 yearly.
The Merseyside site is located 0.8 miles away from St Helens town centre and benefits from its proximity to the M57, M6 and M62.
(LON:AEWL) Aew Uk Long Lease Reit Plc Ord Gbp0.01 share price was 0p at 102.88p