Birmingham, 30 July 2010 – CB Richard Ellis’ Capital Markets team in Birmingham has acquired a 130,000 sq ft distribution unit, near Wolverhampton, for £8.35m on behalf of South African investment company British Capital Property Ltd.
The unit, on Heath Mill Road, Womborne, is let to kitchen appliance manufacturer Russell Hobbs until 2030 at a rent of £5.10 per sq ft. The lease incorporates a fixed rental uplift to £5.77 per sq ft in 2015.
CBRE acquired the property from a private investor on behalf of British Capital Property Ltd. Savills advised the vendor.
The deal reflects a net initial yield of 7.53 per cent.
Nick Woodward, from CBRE’s Birmingham capital markets team, said: “This is British Capital’s first acquisition in the UK. The asset has a long unexpired term, guaranteed rental performance and strong covenant and will be a secure long-term investment for the company.”
In a further deal, CBRE, acting for CCLA Investment Management, acquired an industrial unit at Meir Park, in Stoke on Trent, for £3.54m for The CBF Church of England Property Fund.
The 69,318 sq ft property is let to Newell Ltd and sub-let to Bibby Distribution Ltd until June 2017, at a rent of £4.30 per sq ft.
The acquisition reflects a net initial yield of 7.96 per cent.
Savills acted on behalf of the vendor, a private syndicate.
United Kingdom