Birch Coppice units sold in £34m deal
IM Properties has sold two distribution units at its Birch Coppice Business Park near Tamworth to a client of Aberdeen Asset Management for £33.73m.
The 166,600 sq ft and 169,000 sq ft units were the first in the UK to be speculatively developed in the current market cycle and were pre-let by CBRE in February this year to international distribution and outsourcing specialist Bunzl and automotive component supplier DAU Draexlmaier Automotive UK respectively.
The units were let on 15-year leases with break options in year ten, at rents of £5 per sq ft and £5.75 per sq ft. Rents at the park, which is adjacent to Junction 10 of the M42, have since exceeded £6 per sq ft.
The investment was marketed by CBRE in October and the purchase was secured by Knight Frank on behalf of a client of Aberdeen Asset Management. The fund completed the transaction for £33.73m, which reflects a net initial yield of 5.06%.
Ed Gamble, a senior director in the capital markets team at the Birmingham office of CBRE, said: “This deal is hugely significant, not least because it endorses IM’s decision to be the first UK developer off the blocks with large scale speculative logistics development.
“Of equal importance is the yield achieved, which is testament to the location, quality of the units and the strength of competition for such stock.”
Johnny Hawkins, a partner at Knight Frank, said: “Prime logistics units of this nature are always very hotly contested. Aberdeen is delighted to have secured a property of such high quality, demonstrating their intent in acquiring the best assets for their client.”
Birch Coppice is home to big name occupiers including Ocado, UPS, Volkswagen Group and Euro Car Parts.