Sir Robert McAlpine Enterprises Ltd has sold Waterway Park in Hayes to DTZ Investors for £23.7m, reflecting a net initial yield of 5.30%.

The park comprises 12 industrial units totalling 139,970 sq ft which are let to seven tenants with two units currently vacant, amounting to 22% of the floor area.  With rent guarantees applied to the two vacant units, the property produces a total rental income of £1,327,858 per annum with an average weighted unexpired term of 7.49 years to breaks and 2.99 years to expiries.

James Fairweather, head of industrial and logistics at Strutt & Parker, who acted for Sir Robert McAlpine Enterprises Ltd said: “The price achieved demonstrates the strong investor appetite for Greater London industrial estates which are highly sought after by a broad spectrum of investors seeking opportunities that provide a diversity of income and rental growth prospects.”

Kevin O’Connor at DTZ Investors commented: “The purchase of Waterway Park reflects our confidence in the local market, driven in part by the success achieved at Trade City, Hayes where nine of the 10 units speculatively developed last year are either let or under offer.”

Strutt & Parker advised Sir Robert McAlpine Enterprises Ltd; DTZ Investors was represented by DTZ.