Coventry distribution warehouse acquired in £4.35m deal
A COVENTRY distribution warehouse has changed hands in a £4.35m deal brokered out of Birmingham.
Blue Marble Asset Management acquired 7030 Middlemarch Business Park in an off-market deal on behalf of a private client.
The 65,815 sq ft unit is let to Canute UK, which recently agreed a new 10-year lease in May 2016. The deal represents a net initial yield of 7.95%.
The business park’s occupiers include Royal Mail, Wincanton, Unipart, Gefco, Buck & Hickman and Walkers Snacks.
Edward Jones, Investment Director at Birmingham-based Blue Marble, said: “This is a flavour of the year distribution warehouse investment deal which we have acquired at a significant discount to other prime deals, reflecting nearly eight per cent in a market sector where yields are ostensibly much lower.
“It is a cracking investment in a good building, in an improving location, where the acquisition is fully underpinned by vacant possession value.”
Blue Marble will now implement a clear business plan to maximise returns for the investor.
The Coventry purchase comes hard on the heels of Blue Marble’s acquisition of a 23,000 sq ft industrial / distribution unit in Glasshoughton, West Yorkshire, its acquisition of two West Midlands mixed use properties, and its disposal of an investment in a 40,000 sq ft industrial / distribution warehouse in Peterlee, County Durham.
“There is still good value to be found in certain distribution investments, as there are in other market sectors, but particularly at the current time investment in this sector requires specialist knowledge and insight, and the expertise to work with a client on a long term basis to unlock further value,” added Mr Jones.
