Britannic Asset Management has paid £17.6m to Henderson Investors for two distribution warehouses in the Midlands.
At Magna Park, in Leicestershire, Britannic has bought a 12,356 sq m (133,000 sq ft) unit for £7.7m. The rent equates to £53 per sq m (£4.90 per sq ft), reflecting a net initial yield of 8%. The unit is let to Avon Cosmetics for 25 years and sublet to P&O Distribution.
At Middlemarch Business Park, in Coventry, Britannic has paid £9.9m for a 14,957 sq m (161,000 sq ft) distribution unit. The price reflects an equivalent yield of around 8%. The scheme is let on a 20-year lease to P&O Distribution at a rent of £48 per sq m (£4.50 per sq ft).
Insignia Richard Ellis represented Henderson in both transactions, while Chesterton advised Britannic.
EGi News 29/11/00
