Brixton Estate is selling a retail warehouse park in Croydon, south London, to Chartwell Land for £32.25m, reflecting an initial yield of 5.4%.
The developer has exchanged contracts with Chartwell for the 18,950 sq m (204,000 sq ft) scheme at 500 Purley Way and when completed the deal will represent a 9.3% increase over the development’s book value at the end of 1997.
Sainsbury’s Homebase is the main tenant on the 4.5ha (11.3 acre) park and according to a spokesman for Brixton Estate, the sale should complete on February 1 1999.
He said: “The park is Brixton’s only stand-alone retail holding and the disposal reflects the company’s continued specialisation and concentration on the industrial and warehouse markets in the South East.”
Brixton has just put the investment of its Birmingham city centre office refurbishment at 120 Edmund Street on the market for £30m.
Richard Ellis and Jones Lang Wootton acted jointly for Brixton. Chartwell was represented by Edgerley Simpson Howe.
EGi News 26/11/98
