M&G Real Estate is acquiring a 72,500 m2 distribution warehouse in the UK in a forward-funding deal with the developer IM Properties. The investment volume of £81 mln (€108 mln) reflects a net initial yield of 5.14%.
M&G Real Estate is acquiring a 72,500 m2 distribution warehouse in the UK in a forward-funding deal with the developer IM Properties. The investment volume of £81 mln (€108 mln) reflects a net initial yield of 5.14%.
The site is located at Birch Coppice Business Park in Tamworth, a market town around 22 km northwest of Birmingham.
The purchase was made on behalf of the M&G Property Portfolio.
The warehouse facility is pre-let to Euro Car Parts, which will take a 20-year lease on the property on completion at an annual rent of £4.278 mln per annum with 5-yearly RPI linked rent reviews.
Andrew Windle, associate director of logistics and industrial at M&G Real Estate, said: 'There is 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.'
Savills acted for M&G Real estate and IM Properties was represented by CBRE.
