A LONDON-based property company has turned its attention away from the capital to snap up an industrial estate in Rotherham following a deal overseen by property consultancy Innes England on behalf of Pioneer Real Estate Ltd.
Northfield Industrial Estate consists of six units totalling approximately 44,517 sq ft. Tenants include global company Bodycote Heat Treatments, established local business Main Street Interiors and Rotherham MBC.
Stuart Waite, associate director at Innes England, handled the deal which he says is indicative of investors looking further afield to source opportunities which generate higher returns.
He said: “Northfield was an attractive prospect for a number of reasons. Its low capital value and scope for rental growth means the purchasers will benefit from an attractive initial return, and there is the potential to add value through active asset management. Pioneer Real Estate continues to build its portfolio of assets and we are seeking to assist in the expansion of the portfolio.”
Stuart believes the sale is illustrative of a trend that is increasingly apparent across the East Midlands as well as other regions across the UK.
He added: “Over recent months we have seen private an institutional wealth filtering out of the capital and into the regions where there is perceived value compared with that in London and its surrounds”
“This is something that we are seeing more and more across the regions – both in the East Midlands and indeed further afield.”
The deal follows the recent sale of Exchange Road in Osmaston Park Road in Derby on behalf of Sainsbury’s to a private investor.