ABERDEEN Asset Managers has bought a 42,500 sq ft warehouse in Birmingham on behalf of a property fund owned by Telford-based life assurance company Windsor Life.
The company paid £3.3m for the shed in the Saltley Gate area of the city which represents a net yield of 6.7%.
The warehouse, one of two used by Booker cash-and carry in the city, had a target price of £3.16m.
The Birmingham-based team from property consultants King Sturge represented AAM in the deal.
Head of investment Richard Goodall said: “The property is let until 2025, without a break, and the peppercorn head lease has another 115 years to run.
“There aren’t many quality long leasehold investments available, so we weren’t surprised by the level of interest.”
The deal represents a change of landlord and tenants Booker will not be moving out of the property.
Mr Goodall added: “The mood is still quite subdued, and there hasn’t been the flurry of activity which we saw last autumn.
“It doesn’t help anyone to talk up the market artificially, and to be realistic, I suspect that the period of uncertainty will continue, even after we discover what is being announced in the October spending review.
“Markets generally thrive on confidence. I suppose if I had to sum up the mood in a word, it would be ‘fragile’.”
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