6 Apr 2011

Northcreek Sells Two Estates in Milton Keynes

6th April 2011 – Northcreek Estates, the light industrial real estate investment business advised by M7 Real Estate, has sold two multi-let industrial estates in Milton Keynes to the Mayfair Capital Property Unit Trust (“MCPUT”), a £100 million fund managed by Mayfair Capital Investment Management.

The two estates, which together cover an area of 175,000 square feet, were sold for a combined value of £6.6 million; this represented an initial yield of approximately 9% and a capital value of £38 per sq ft. The estates had been acquired approximately 12 months ago, when Northcreek bought a large Industrial Portfolio from UBS Triton.

Jack Thoms, a Partner of M7, commented: “When Northcreek acquired the assets, many of the leases were coming to an end and physically the assets required substantial capital expenditure. Within 12 months, Northcreek has been able to stabilise the leasing position, carry out the necessary expenditure and create an enhanced asset.”

Robert Palmer, Fund Director of MCPUT, commented: “These acquisitions will provide additional income to the portfolio complementing the dryer, long let acquisitions completed last year. There is scope to increase the income further on leasing the three vacant units.

Franc Warwick acted as the sales agent in the transaction and Chris Freer Smith Ltd acted for the purchaser.