NPI has acquired B&Q’s 11,553 sq m (124,359 sq ft) store on the A46 Coventry bypass for £13.7m. It is the first Warehouse format outlet of this size which B&Q has developed for its own occupation and sold into the institutional market.
The sale reflects a net intial yield of 7.25% based on a leaseback rent of £107.64 per sq m (£10 per sq ft).
Hillier Parker’s investment partner, Mike Tomkinson said: “What’s important about this deal is that it sets a new benchmark for these types of developments. Yields have moved in significantly which shows that the institutions have a lot more confidence in them.”
B&Q has so far developed 22 of these larger stores with three more to follow this year in Wallasey, Bury and Stockton.
Hillier Parker advised B&Q while Jarman and Ryden both represented NPI.
EGi News 08/05/97
