A 700,000 sq ft distribution warehouse in Staffordshire has been sold in one of the biggest shed deals this year.
EPIC UK has bought the Tesco distribution hub at Fradley Park in Lichfield, Staffordshire, for £46.2m – a yield of 6.45%.
Evans Property Group sold the property, which is let to Tesco on a lease with around 15.5 years remaining.
The facility is used as Tesco’s main distribution centre, from which it services stores in the Midlands and the North.
Andrew Meikle, director of the capital markets team at CBRE, said: “With prospects for rental growth looking subdued in many markets, the relative attraction of higher-income yields on industrial and logistics property has increased.”
Michael Elghanayan, principal at EPIC, added: “The capacity for Tesco to expand on site was very attractive to us.”
CBRE advised EPIC UK; Jones Lang LaSalle acted on behalf of the vendor.
Lisa.pilkington@estatesgazette.com
