Assa Abloy Ltd, Cannock Road, Wolverhampton, WV10 0RR
Franck-Steier Price has recently acted on behalf of Custodian REIT in the sale of a well-located distribution warehouse investment on Cannock Road, Wolverhampton.
The property comprises a 1990’s build distribution warehouse totalling 120,562 sq ft on a site of 6.84 acres.
The property is let to the excellent covenant of Assa Abloy Ltd, the UKs largest lock manufacturer and distributor, with an expiry in July 2023. They have been in occupation of the unit since 2004 and the property is their UK fulfilment centre, ideally located just over 1 mile from their manufacturing facility in Wolverhampton. The passing rent is £512,000 per annum which reflects £4.25 per sq ft. The rent is reviewed upwards only to RPI (2-4%) with the next review in July 2021.
The purchase price paid was £6,600,000 which represents a net initial yield of 7.27% after usual costs of purchase.
Commenting on the transaction, James Hemstock said “We are delighted to have acted for Custodian REIT on this sale having previously purchased the unit for them in 2016. The price paid was in excess of the quoting price, providing Custodian with excellent performance over their holding period and proving the appetite for good quality second hand industrial units still remains strong”.
The purchaser was Atlantic Leaf who were represented by M1 Agency and Franck-Steier price represented the vendors, Custodian REIT.