Property investor snaps up Birmingham warehouse in £3.25m deal
Real estate investor, DTZ Investors UK has completed the £3.25m purchase of a 35,000 sq ft industrial unit in Birmingham.
The investor has acquired the freehold of Unit 3, Nexus Point, Aston from London-based CCLA Investment Management.
Built in 2003, Unit 3 is a 35,433 sq ft warehouse, with office accommodation, on a 2.35-acre site. It is let to EEF for a Technology and Training Centre on a 15-year lease expiring in 2028, with break options in 2019 and 2023.
The unit is close to the new regional fulfilment centre (RFC) opened by catalogue retailer Argos.
Property agency KWB acted on behalf CCLA Investment Management, with Harris Lamb representing the purchaser.
The purchase price reflects a net initial yield of 5.1%.
Kenny Allan, Director of Industrial Agency at KWB, which arranged the freehold purchase, said: “The current shortage of supply of warehouse units of this size means we attracted many bids for this property and beat the guide price, despite the potentially short income, with a tenant break in only two years.”
The sale follows hard on the heels of KWB letting a 20,000 sq ft industrial unit at Perry Park to Howdens Joinery on behalf of Legal & General’s Industrial Property Investment Fund, and letting 37,200 sq ft of industrial space at Electrium Point in Willenhall to haulage firm J Madden Transport on behalf of Hortons’ Estate.
