The Standard Life Investments Property Income Trust has bought an industrial property in Sunderland for £5.5m, representing a net initial yield of 6.4%.
The 150,000 sq ft property is located in Washington – part of Sunderland’s industrial district – and is let to SNOP UK with a further five years left on the lease.
SNOP UK is a supplier to Nissan, importing car-body parts for use in Nissan plants across the UK.
It is the UK division of Financière SNOP Dunois (FSD) Group and has previously invested in converting the property into its base for automotive body parts production.
The property has planning permission for a new extension and offers asset management opportunities in the future.
Jason Baggaley, Fund Manager of Standard Life Investments Property Income Trust, said: "This purchase provides the fund with a well let industrial unit in a thriving location with limited supply and increasing demand. We look forward to working with the tenant to utilise the low site cover and reversionary rent to unlock value enhancement in the future, but in the meantime the investment provides an attractive and reliable income stream that is accretive to the revenue account."
Standard Life Investments was advised by GVA. The vendor was advised by Cooper Rose Real Estate.
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