King Sturge's Birmingham office has completed the largest
Midlands' distribution deal this year, with the acquisition of
three warehouses at Hams Hall National Distribution Centre,
Coleshill, totalling £34.825 million.
Reflecting a net yield of 9.0%, the 620,000 sq ft of
distribution space has been acquired by London based F & C
Commercial Property Trust, for which King Sturge acted on behalf
of. The vendor is Ropemaker Properties Limited, the pension arm of
the BP Pension Fund.
The three units are currently let to tenants Bell Micro Products
Ltd, Wincanton Holdings Ltd and Arvato SCM Ltd with a total passing
rent of £3,338,062 per annum for an average unexpired lease
term of approximately six years.
Allan Wilson, industrial investment partner at King Sturge said
that whilst the acquisition provided an equitable transaction for
all concerned, the pricing in the medium term is still
attractive.
"This deal obviously provides a great boost to the region and
whilst it is even more important in the current climate, at any
time it would be a hugely significant. It confirms institutional
money is returning to the marketplace."
The deal represents the second acquisition by F&C Commercial
Property Trust during this financial year; and its second purchase
in the industrial sector following the £17.25 million
warehouse at DRIFT, Daventry. The purchase was made from the
company's available cash resources.
Richard Kirby, director of property funds for F & C
Commercial Property Trust added.
"The acquisition, coupled with the purchase in Daventry in July,
indicates our commitment to increase the company's activity within
the industrial and logistics sector and upon completion of this
purchase the company's weighting within this sector will increase
approximately 13%. Hams Hall is a strong logistics location
and the purchase of such good quality properties at an initial
yield of 9% is attractive to the company."