F&C completes largest distribution deal in British Midlands

F&C Commercial Property Trust announced on Tuesday that it has acquired three warehouses at Hams Hall National Distribution Centre near Birmingham in the UK for £34.8 mln (EUR 38 mln). The investment volume reflects a net initial yield of 9%.

The 57,600 m² of distribution space comprises three modern units. Hams Hall is an established distribution and logistics park located adjacent to Junction 9 of the M42 motorway.

The three units are currently let to tenants Bell Micro Products, Wincanton Holdings and Arvato SCM with a total passing rent of £3.3 mln per annum for an average unexpired lease term of approximately six years. Allan Wilson, industrial investment partner at King Sturge, acted on behalf of F&C Commercial Property Trust. The vendor was Ropemaker Properties Limited, the pension arm of the BP Pension Fund.

This is F&C's second deal in the industrial sector this year following the £17.25 mln warehouse purchase in Daventry.

Richard Kirby, director of property funds for F&C Commercial Property Trust, said of the transaction: 'This acquisition, coupled with the purchase in Daventry in July, indicates our commitment to increase the company's activity within the industrial and logistics sector and upon completion of this purchase the company's weighting within this sector will increase to approximately 13%. Hams Hall is a strong logistical location and the purchase of such good quality properties at an initial yield of 9% is attractive to the company.'