Aviva buys two industrial schemes in Warwickshire for £11.5m
AVIVA Investors has completed the acquisition of two industrial properties in Warwickshire for a total cost of around £11.5m.
The Budbrooke Industrial Estate in Warwick, was acquired from a private client of Whitmarsh Holt Young for £6.3m. The sale reflects a net initial yield of around 8%.
Arranged over 22 units, the 88,999 sq ft estate is multi-let to a range of industrial and trade occupiers generating an income of £514,781 pa and providing an average weighted unexpired term of 2.7 years.
Aviva Investors has also acquired the Premier Foods distribution warehouse on Swift Valley Park, Rugby, for £5.25m, reflecting a net initial yield of 9.43%. The warehouse totals 100,178 sq ft and is let to Premier Foods Group until December 2018 at a passing rent of £523,573 per annum.
Birmingham-based property consultancy Colliers International represented Aviva in the deals.
John Hanson, director, national investment at Colliers, said, “These investments provide Aviva Investors with an excellent opportunity to maintain an attractive running yield whilst at the same time undertaking asset management to improve the performance of both properties.
“As we approach the end of the first quarter we have seen a notable increase in investor’s appetite for industrial investments. For multi-let industrial investments, there has certainly been greater focus on strong performing regional markets where a more attractive yield can be achieved in comparison to the South East.”
Whitmarsh Holt Young advised the vendor for The Budbrooke Industrial Estate. Strutt and Parker advised the vendor at Swift Valley Park.
