Defence firm BAE Systems has sold a 250,000 sq ft munitions factory in Crewe, Cheshire, to a Manchester-based investment vehicle for £41m, reflecting a net initial yield of 6.5%.
Crewe Assets, set up by Andrew Berkeley and David Hammelburger of David Samuel Properties, bought the facility at Radway Green, which BAE Systems will occupy on a 25-year lease, with fixed 2% compound annual uplifts. The building was completed in September.
Barclays Real Estate provided a £34.5m funding facility for the purchase.
Hammelburger said: “The ability for us to attract new bank lending in this very difficult environment really demonstrates our financial standing and track record in the commercial property investment sector. It also demonstrates that the banks are very much open for lending to the right businesses.”
Mark Rawstron senior director at GVA, which advised Crewe Assets, said: “This deal reflects the demand for long-dated investment stock with geared uplifts.”
BNP Paribas Real Estate acted for BAE Systems.
daniel.cunningham@estatesgazette.com
