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The specialist manager of multi-let industrial estates, IO Asset Management, has purchased five sites on behalf of a Hong Kong Family private investor for more than £12m.

The Chantry Industrial Estate in Minworth and Units D1-D12 at Hortonwood in Telford have been bought for £4.5m. The estates comprise a total of 71,000 sq ft across 17 units. The purchase reflects a blended net initial yield of 7%. IO is implementing a series of short and medium-term asset management initiatives in order to target a reversionary yield of 8.5%.

IO has also acquired properties for the same investor at Spring Road Industrial Estate in Wolverhampton; Albert Road, Bristol; and Heaton Court, Warrington for a total of £8.12m. The three properties total 160,000 sq ft and the acquisitions show a blended net initial yield of around 7%. IO also plans active asset management at these sites with a target reversionary yield of more than 8.5%.

Angus Scott-Brown, Managing Director of IO Asset Management, commented: “These purchases were made in the spring and early summer and reflect the growing level of interest from international investors towards UK industrial property.

Buyers are looking for strategically placed property that can provide strong and stable returns but also are attracted to investments that have active asset management potential.
This is our specialism and clients are placing increasing importance on both strategic property selection and the ability to enhance values.