Flint Bishop

Barwood and JP Morgan sign £21m deal for Wellesbourne Distribution Park

Joint buyers, Barwood Developments Limited and JP Morgan Asset Managers, have purchased the 72 acre Wellesbourne Distribution Park in Warwickshire for circa £21m, reflecting a net initial yield of circa 10 per cent.

Comprising 752,334 sq ft of industrial and warehouse accommodation, the range of units are currently let to 12 tenants including Amethyst Group Limited, CEVA Logistics, Ford Retail Ltd, National Farmers Union Mutual Insurance Society Ltd and Geberit Sales Ltd, with a total passing rent of £2.3m.

Jonathan Hillcox, senior director within GVA's investment team, which acted on behalf of the seller, said: "Wellesbourne Distribution Park provides a high income yield, backed by good quality tenants, with an average lease length of just under nine years. Situated in a popular location, the site enjoys a highly accessible position, being within close proximity to J15 of the M40, which is an important route for national and regional distribution operators.

"There are no other industrial estates along the entire M40 with comparable accessibility that offer this type of space and consequently there was a very high level of interest in the development from vying purchasers. The Park offers a range of good quality buildings, but it also has significant development potential, which will enable Barwood and JP Morgan to add value to their new asset."

Individual unit sizes at Wellesbourne Distribution Park range from 361 sq ft to 106,383 sq ft, and there are various secure hard-surface compounds extending in total to approximately 21.5 acres. Combinations of adjacent units can accommodate tenant requirements of up to 161,941 sq ft. 

Wellesbourne Distribution Park is situated to the west of Wellesbourne and benefits from extensive frontage of the A429, which provides direct access to Junction 15 of the M40 motorway. Almost 90 per cent of the UK's population is accessible by HGV within a five hour drive. 

Since its inception in 1996, Northampton-based Barwood Developments Limited has invested in over eight million sq ft of industrial distribution, offices, leisure and retail warehousing accommodation. 

JP Morgan is a leading asset manager for institutions, individuals and financial intermediaries worldwide. 

Fletcher King and Awbery Morris advised the purchaser. 

 

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Article published by Midlands Business News on 6 September, 2011

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