Warburg-Henderson has acquired the freehold interest in a newly developed distribution warehouse at Drum Industrial Estate, County Durham in the UK. The purchase from Gladman Developments was carried out on behalf of Warburg-Henderson's European Core Property 1 Fund. The investment volume of £16.25 mln (almost EUR 19 mln) reflects a net initial yield of 6.69%.
Warburg-Henderson has acquired the freehold interest in a newly developed distribution warehouse at Drum Industrial Estate, County Durham in the UK. The purchase from Gladman Developments was carried out on behalf of Warburg-Henderson's European Core Property 1 Fund. The investment volume of £16.25 mln (almost EUR 19 mln) reflects a net initial yield of 6.69%.
The distribution warehouse totals 25,000 m2 and a low site cover of 31% providing potential for future expansion. The property is let to the Co-operative Group on a lease expiring in March 2024 and produces a rental income of £1.15 mln.
This is the second UK purchase Warburg-Henderson has made for its pan-European fund, which is seeking well located and let high quality assets with security of income. The fund is continuing to explore further UK opportunities.
Drivers Jonas Deloitte advised Warburg-Henderson and Strutt & Parker advised Gladman Developments.
