CBRE advises £8m deal
CB Richard Ellis’ Birmingham office has acquired a 130,000 sq ft distribution unit near Wolverhampton for £8.35m. It is on behalf of South African investment company British Capital Property.
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.
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.”
Property adviser Savills acted on behalf of the vendor.
In a further deal, CBRE recently acquired an industrial unit at Meir Park in Stoke-on-Trent, for £3.54m on behalf of CCLA Investment Management. The property was let for the CBF Church of England Property Fund. The 69,318 sq ft property is let to Newell and sub-let to Bibby Distribution until June 2017, at a rent of £4.30 per sq ft.
