BMO Real Estate Investments has bought two freehold properties for a total of £19.4m in an off-market deal.
The first property is an industrial asset in Colnbrook, Heathrow, bought for £12.1m – a 4% yield. It is fully let to a vehicle servicing centre for a further three years.
The second property comprises a retail warehousing scheme in Banbury, Oxfordshire, occupied by Wickes and Topps Tiles for a further 4.2 years. The property was bought for £7.3m – a 6.3%yield.
BMO said the deal enhanced its “exposure to the functional, low-rented part of the retail warehousing sub-sector, which continues to see material yield compression based on robust occupational fundamentals coupled with the potential for alternative uses, protecting long-term value”.
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
