Kier Trade City LLP has sold its Trade City development on Montrose Road, Dukes Park Industrial Estate in Chelmsford to Clipstone Industrial REIT plc. It has been sold for £16,400,000, which reflects a Net Initial Yield of 4.29%.
The site was purchased in January 2018 and Kier Property secured planning and developed a prime multi-let trade/logistics park. It has a total floor area of 61,200 sq. ft (5,686 sq. m) across 11 units and includes 11 industrial, commercial, warehouse and trade counter units. Units range from 3,617 sq. ft to 14,640 sq. ft.
The asset located in Chelmsford, a core South East market, benefits from excellent road links to the M25 and wider motorway network and transport connections into central London.
Kier Property developed the scheme to a very high standard with excellent specification and sustainability credentials. It comes with a diversified income base from key tenants including national trade counter operators such as Halfords, Dulux, and parcel carrier Hermes Parcelnet and it also boasts a strong covenant base with 73% of contracted rent secured to tenants rated by Dun & Bradstreet as having a “minimum” or “lower than average” risk of business failure.
Phil Sutton, head of trade and logistics for Kier Property commented: “Selling this scheme, despite the challenging market conditions, highlights the continued importance of industrial developments. Chelmsford has outperformed all expectations and we are looking to deliver more of this type of product in the coming months.”
Kier Property has operated in the industrial sector for almost 20 years and developed more than six million sq. ft of industrial space through its Trade City and Logistics City brands and has a pipeline of more than £1.5bn GDV across all asset classes.