CBRE Global Investors has completed the acquisition of a prime industrial unit in Milton Keynes from Bollinwater Estates on behalf of Shell Pension Trust for £12.78 mln (€14.5 mln), representing a net initial yield of 4.71%.
Unit A, Tongwell Street is situated in Fox Milne, Milton Keynes, and is fully let to global IT distributor, Westcoast Ltd, for a term expiring in March 2026. The tenant has the benefit of a break option in March 2021.
The warehouse covers 103,644 ft2 (9,639 m2) and includes 8,977 ft2 (834 m2) of high-grade office space. It was built in 1999. The current rent is £642,000 (€727,000) per annum which reflects a rent of £6.19 per ft2.
'Unit A, Tongwell Street fits perfectly with our investment strategy of diversifying into new sectors and by location but with a retained focus towards London and the South East,' commented Chris Tucker, fund manager, CBRE Global Investors. 'The property’s characteristics are strong and so the letting prospects are extremely positive going forward.'
The warehouse is located within the ‘Golden Triangle’ industrial area known as Fox Milne. Milton Keynes is strategically located on the M1 corridor between junction 13 and 14, 55 miles north-west of London.
CBRE Global Investors was advised by FSP Property.
Colliers International advised Bollinwater Estates on the disposal.
