Delancey buys Derbyshire estate
Investment adviser Delancey has acquired the freehold interest in the West Hallam Industrial Estate, Derbyshire, for £18.6m. The company bought the 120-acre site from Douglas Bay Capital.
The purchase price reflects a net initial yield of 8.6 per cent.
West Hallam industrial Estate comprises about 1.3 million sq ft of warehouse and logistics space across 106 buildings. It is let to third party logistics operator TDG.
TDG has an eight-year lease and management agreement at an annual minimum rent of £1.7m per annum. TDG operates distribution contracts for clients including Boots, Brakes, Rolls-Royce and Costa Coffee from the multiple buildings and open storage yards on the estate.
Paul Goswell, managing director of London-based Delancey, said: “We regard this as a very exciting asset which offers huge potential through active asset management. It is the first time the property has changed hands in 50 years and we envisage there will be a host of opportunities to add value over time.”
Delancey was advised by Northants-based Burbage Reality. The Birmingham office of Colliers International and Celtic Asset Management advised Douglas Bay Capital.
