A DISTRIBUTION unit used by drinks logistics firm Tradeteam in Coleshill has been sold for £10.6m.
The warehouse has been bought by Legal & General UK Property Trust from Liverpool Victoria Friendly Society as part of the latter’s ongoing portfolio management strategy.
The property comprises a distribution unit of 171,894 sq ft, with 33,994 sq ft of canopies, on a site of just over 14 acres. The sale price reflects a net initial yield of 9%.
It is let to Tradeteam, part of the DHL group, for a 20-year term which expires in October 2016 at a current rent of £1.01m per year.
David Allen, from the Birmingham-based investment team of BNP Paribas, acted for Liverpool Victoria while Legal and General was represented by Lambert Smith Hampton.
Matt Jarvis, fund manager at Legal and General said: “The yield reflects the term on the lease, but we also believe in the quality of the location here. It is a good trade for both sides.”
