Gwaelod y Garth industrial estate Cardiff sold for £3.75 million

The Capital Markets team of Knight Frank has sold the Gwaelod y Garth industrial estate in Cardiff to a private investor for £3.75 million.

Knight Frank represented vendor AXA Investment Managers in the £3.75m freehold sale, which represented a Net Initial Yield (NIY) of 6.31%. The purchaser was represented by Fulwell Capital.

The multi-let 1970s industrial estate is located at the intersection of Junction 32 of the M4 and the A470, regarded as the most important road intersection in Wales. It comprises six units totalling 49,920 sq ft in three terraces.  The estate is fully let and currently attracts annual rents of £253,601.

Gareth Lloyd, partner in the Knight Frank Capital Markets team in Cardiff, commented:

“Following a successful marketing campaign we received strong interest in the sale of the industrial estate from the market with a total of 11 offers above the quoting price, demonstrating the level of demand from investors for well-located industrial investments in Wales.”

AXA Investment Managers, which has owned the estate since 2006, recently undertook refurbishment works which quickly led to two new lettings with a number of lease regears, that were handled by the industrial agency team at Knight Frank.

Neil Francis, who heads the Knight Frank industrial agency team in Cardiff, commented:

“Industrial occupiers are looking for this size of building just off the M4; with a lack of new build activity and a rising demand for good quality stock, industrial estates like Gwaelod y Garth offer occupiers exactly what they want.”