St Modwen snaps up Speke industrial estate in £7.25m deal

Southern Gateway is a 368,000 sq ft facility in Speke that was formerly the manufacturing and distribution facility for pharmaceutical giant GlaxoSmithkline and covers 17.3 acres

Aerial view of Southern Gateway in Speke

 

Developer St Modwen has acquired an industrial estate in South Liverpool for £7.25m.

Southern Gateway is a 368,000 sq ft facility in Speke that was formerly the manufacturing and distribution facility for pharmaceutical giant GlaxoSmithkline and covers 17.3 acres.

It is multi-let to a range of tenants including Shop Direct and Nerudia and generates £917,000 of annual rental income.

The deal represents a net initial yield of 11.89%. The yield is annual income expressed as a percentage of capital value.

David Nuttall, development manager for St Modwen, said: “This investment typifies our ongoing strategy of acquiring assets that demonstrate excellent potential for further value generation and in turn, growing our commercial development pipeline.

Southern Gateway is close to Jaguar Land Rover and Liverpool John Lennon Airport, is on a major arterial route and has around a third of a kilometre of road frontage.

“It will therefore provide a variety of options for St Modwen moving forward.

GVA and Pinsent Masons acted for St Modwen. JLL acted for the vendor.

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