Property consultancy Knight Frank has sold the freehold of the UPG Wales warehouse and offices at Cwm Cynon Industrial Estate, Mountain Ash for £2.51 million.
Acting on behalf of vendor Topland Group, Knight Frank sold the 62,125 sq ft unit on a 5.53 acre site to a private investor, represented by Inprio, in a transaction representing a net initial yield (NIY) of 6.93%.
Gareth Lloyd, from Knight Frank’s Capital Markets team in Cardiff, said:
“This is a well specified industrial unit located three miles north west of the A470 and with a very strong occupational story.
“The level of demand we witnessed for this asset demonstrates the increasing weight of money targeting good industrial units in South Wales where the strong market fundamentals should lead to excellent capital and rental growth.”
SPM Plastics is part of the wider United Plastics Group (UPG) and was established in 1954 with a global presence and sister-plants in Texas and Suzhou, China.
Neil McShane of INPRIO commented:
“This represented a strategic acquisition to extend my client’s portfolio of long income assets let to strong covenants. The tenant, UPG, has been in occupation since construction of the unit over 23 years ago and has recently invested by completing a 7,555 sq ft extension to the unit to complement their specialist fit-out.”
The Cwm Cynon Industrial Estate is located in Mountain Ash, three miles north west of the A470, the primary spine road connecting Cardiﬀ and the M4 motorway to the Heads of the Valleys areas.