Millington pays £2.1m for big shed

AN East Midlands property firm has invested £2.15m in the acquisition of a 35,000-plus sq ft industrial unit in Warwickshire.

Millington Estates, based in Chesterfield, has bought the vacant 35,240 sq ft  unit on Swift Park in Rugby as a long term investment.

Commercial property agency Phillips Sutton Associates brokered the deal.

Sam Sutton, of Phillips Sutton Associates, said: “This is a shrewd deal for our client, as the price of the building was less than it would cost to buy the land and build the unit in today’s market.

“The lack of stock in the market, especially around the Rugby area, means that Unit A3 offers good rental prospects and will provide a long-term return of around 8-9%.

“Rugby is a popular logistics warehouse market, due to its strategic central location in the motorway network, and demand is strong because of a lack of medium-sized units being built in the area.”

Unit A3 was refurbished by the vendor so it was immediately available to occupy.

Investor and new landlord Simon White said: “I was delighted when Sam Sutton brought this opportunity to my attention.

“Through another company we have had a long involvement with nearby Bermuda Park in Nuneaton and I am therefore well aware of the attractiveness of the location.

“The building itself is in excellent condition and good quality supply is hard to find in this area at the moment. Under the circumstances I am sure the agents will secure a rapid letting for us and we will benefit from the creation of an investment to hold for Millington bought in at a substantial discount to prices being achieved for equivalent ‘oven ready’ industrial investments in this part of the country.”

Unit A3 is situated on a prominent corner site on Swift Park – a well-established industrial estate within the ‘Golden Triangle’ of prime distribution locations formed by the M1, M6 and M69. Some 80% of the country’s population can be reached from this area within a four-hour drive time.

Burbage Realty acted for the vendor, Orchard Street Investment Management.