M&G Investments has agreed to fund a 777,929 sq ft warehouse in Tamworth, Staffordshire.
The total commitment is £81m, representing a net initial yield of 5.14%. The purchase was made on behalf of the M&G Property Portfolio.
It will be developed by IM Properties at Birch Coppice business park and is prelet to Euro Car Parts. On completion of the development Euro Car Parts will take a 20-year lease at an annual rent of £4.3m pa with five-yearly RPI linked rent reviews.
Andrew Windle, associate director logistics and industrial at M&G Real Estate, said: “There is very strong investor demand for new, prime distribution assets in the Midlands. This will be a prime development in a core location and is reflective of the fact we are currently seeing more relative value in longer-dated prime assets.”
Savills acted for M&G Real Estate; CBRE represented IM Properties.
