IM Properties is close to striking a deal with Aberdeen Asset Management for two West Midlands sheds that would set a new benchmark for the sector.
Aberdeen has offered £40m – a 5.05% yield – for Units 1 and 2 at Birch Coppice business park in Tamworth. Both are subject to an open-market rent review.
The price reflects the keenest yield paid for major sheds not subject to RPI uplifts this cycle and highlights investors’ bullish outlook for the sector.
The two buildings total 334,500 sq ft.
In spring 2013, IM committed to speculatively develop the sheds, making them the first UK industrials over 100,000 sq ft to be built without prelets since 2007. Both were leased before practical completion, however.
Unit 1 is let to Bunzl on a 15-year lease, and served to consolidate the outsourcing firm’s national distribution and telesales into one facility.
Unit 2 is let to German supplier DAU Draexlmaier Automotive UK, also on a 15-year lease, to service a contract with Jaguar Land Rover. Both sheds are let at £5.75 per sq ft.
The 400-acre park, off the M42 near Birmingham, also hosts Ocado, Volkswagen, Euro Car Parts and UPS.
Knight Frank is advising Aberdeen on the sale; CBRE is acting for IM Properties.
