Unit 302, Relay Park, Relay Drive, Tamworth, B77 5PR
Franck-Steier Price has recently completed the sale of a prime single let distribution warehouse investment on behalf of an institutional investor.
The property comprises a modern high bay distribution warehouse in very close proximity to Junction 10 of the M42 motorway. The unit benefits from an eaves height of 11.2 metres, 50 metre loading yard with 4 dock level and 2 level access loading doors.
The unit is let to Schenker Ltd for a term of 5 years with effect from 28 September 2012 on a full repairing and insuring basis (subject to a schedule of condition) and contracted outside the security of tenure provisions of the L&T Act 1954. The current passing rent is £280,000 per annum (£5.07 per sq.ft).
The purchase price of £4,650,000 reflects a net initial yield of 5.65%, assuming purchaser’s costs of 6.58%.
Commenting on the deal, Andrew Franck-Steier said ‘Whilst we knew that the property would attract good interest based on the quality of the unit and the reversionary potential, the price achieved was far in excess of our aspirations and demonstrates the strength of the Midlands distribution occupational and investment market.’
The purchaser was Custodian REIT, represented by CBRE.