UK property investment advisor Delancey has acquired the freehold interest in the West Hallam Industrial Estate, Derbyshire, UK for nearly £19 mln (EUR 22 mln) deal from Douglas Bay Capital. The purchase price reflects a net initial yield of 8.6%.
UK property investment advisor Delancey has acquired the freehold interest in the West Hallam Industrial Estate, Derbyshire, UK for nearly £19 mln (EUR 22 mln) deal from Douglas Bay Capital. The purchase price reflects a net initial yield of 8.6%.
The 120-acre site provides circa 1.3 million sq ft (120,000 m2) of warehouse and logistics space across 106 buildings, and is let to third-party logistics operator TDG.
TDG has an eight-year lease, and management agreement, at an annual minimum rent of £1.7 mln per annum, which equates to £1.30 per sq ft overall. 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.
Delancey will now work together with TDG on letting up vacant space and storage land at the estate.
'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,' said Paul Goswell, managing director of Delancey.
Delancey was advised by Northants-based Burbage Reality. The Birmingham office of Colliers International and Celtic Asset Management advised Douglas Bay Capital.
