Palmer and SEDCO make £10m in 18 months with Blakelands sale

Palmer Capital and SEDCO Capital have sold Blakelands Industrial Estate in Milton Keynes to Royal London Asset Management for a £10m premium on what they paid 18 months ago.

Palmer and SEDCO paid clients of Cornerstone Real Estate Advisers around £28m – an 8% yield – for the multi-let asset. Royal London bought the 565,354 sq ft estate for £38.8m – a yield of 6.37%.

Giles Foods, one of the estate’s main tenants, regeared its lease under Palmer’s ownership. It had 15 years left to run.

Blakelands has 74 industrial units let to 63 tenants with a 2% vacancy rate. The property produces a total rental income of £2.6m pa, equivalent to £4.80 per sq ft.

The average weighted unexpired term is 6.92 years to breaks and 5.5 years to expiries.

Strutt & Parker advised Palmer Capital & SEDCO Capital; Royal London Asset Management was represented by Knight Frank.

Author: Amber Rolt, Estates Gazette