Investor pays £4.6m for Birmingham industrial unit

Property investor Standard Life has bought a 46,800 sq ft industrial unit in Birmingham for £4.58m.

The property, whose exact location has not been disclosed, has recently been let on a 15 year lease with no breaks. The purchase price represents an initial yield of 5.75%.

The transaction by Standard Life Investments Property Income Trust (SLIPIT) was completed alongside a 25,600 sq ft office on York Science Park, which it sold for £4.35m.

Jason Baggaley, fund manager of SLIPIT, said: “Having recently completed the purchase of town centre offices in Reading and Manchester we are pleased to have further reduced our out of town office exposure with the sale of the York office.

“The industrial unit in Birmingham is let to a good covenant on a 15 year lease with no breaks, and although the lease was only granted earlier this year the rent already looks reversionary following the letting we completed recently on our adjacent unit.”