Standard Life has set a new benchmark yield in the shed sector after seeing off a pack of investors for a super-prime Milton Keynes property.
IDI Gazeley has continued its record-breaking run at Magna Park Milton Keynes, Buckinghamshire, by securing an £85m forward funding deal for John Lewis’ MP3 shed.
The deal reflects a yield of 4.2%, for a 638,000 sq ft shed let on a 25-year lease at £5.50 per sq ft.
The price represents the keenest yield ever paid for a UK shed, excluding the 4.1% paid by Cargiant for an H&M-let shed in Wembley, where the landowner has strategic interests.
MP3 was put up for sale in February for £78m – a 4.75% yield. UBS, SEGRO, Tritax, Legal & General and Canada Life all bid for the property.
John Lewis already occupies 1.3m sq ft in two facilities, MP1 and MP2, at Magna Park, while subsidiary Waitrose -occupies 938,449 sq ft.
All three have achieved record yields for the big-box market, highlighting the pace of price movements in the prime shed sector.
In September 2013, Aviva paid £74.2m – a 4.9% yield – for John Lewis’ first shed on the site, while L&G paid £114m – a 4.64% yield – for the Waitrose-let shed last summer.
Gazeley was represented by JLL and Savills; Gerald Eve acted for Standard Life.
