A portfolio of commercial properties, including Leisure@Cwmbran and the site of the Newport city centre Travelodge, has been sold by a Castleton-based property company for £33.4m.

The properties, which also include six industrial units across South Wales, were bought from RH Properties by Cording Real Estate Group, a Northern European real estate investment and asset management firm. The aquisition reflected a net initial yield of 8.5 per cent.

The industrial properties are a mix of single and multi-let units totalling 852,000 sq ft and are let at an average rent of £2.27/sq ft with a weighted average unexpired lease term of more than nine years.

They are a unit in Abercarn let to Smurfitt Kappa, a unit in Cwmbran let to Zodiac Seats, a multi-let unit in Blackwood, two units in Swansea let to Trojan Electronics and Unit Superheater Engineering, and a unit in Merthyr Tydfil let to Amnitec, .

The property in the centre of Newport is let to Travelodge Hotels for a further 17 years and the leisure asset is Leisure@Cwmbran in the town centre, with a range of tenants such as a Vue cinema, a Frankie & Benny’s restaurant and a Bowlplex bowling centre and a combined WAULT of 13.3 years.

The vendor was advised by Allsop.

Mark Millar, head of UK and investment, said: “This portfolio is the type of investment we target for our income strategy. It is underpinned by secure, long-term income but offers us the opportunity to apply our asset management skills to refurbish and lease vacant space and renegotiate lease terms with the existing occupiers.”