M&G Real Estate is funding the development of a UK warehouse for its Property Portfolio fund.
The manager said it took on the construction of the 777,929sqft distribution warehouse in Tamworth from IM Properties Development.
The site, at Birch Coppice Business Park, is pre-let to Euro Car Parts.
The company has agreed to take a 20-year lease, paying £4.3m (€5.6m) a year in rent, with rent reviews every five years.
M&G said the deal reflected a 5.14% yield, and that the letting took the overall committed development at Birch Coppice to 1.25m sqft in the last 12 months.
Ocado, UPS and Bunzi are also tenants of the park, which M&G said benefited from links to UK rail.
Andrew Windle, associate director of logistics and industrial at M&G Real Estate, said there was “very strong investor demand for new, prime distribution assets” in the Midlands.
“This will be a prime development in a core location and is reflective of the fact we are currently seeing more relative value in longer-dated prime assets,” he said.
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