Commercial Management has sold Unit 5100 Crosspoint in Coventry to BMO Real Estate for £15m – a 5.39% yield.
Since acquiring the asset in 2008, Commercial Management has extended the building so that it now provides a warehouse with ancillary office accommodation totalling 146,701 sq ft. The lease to TNT UK has been re-geared so that it now provides an unexpired term of 11.5 years to expiry and 7.5 years to the break. The passing rent totals £862,234.50 per annum reflecting £5.75 per sq ft with an enhanced rent of £0.15 per sq ft applied to the original building to reflect the enhanced specification of the building.
James Fairweather, head of industrial and logistics at Strutt & Parker, who acted for Commercial Management, said: “The price achieved demonstrates the strong investor appetite for logistics investments in core locations which are highly sought after by a broad spectrum of investors seeking opportunities that provide both security of income and rental growth prospects.”
Roddy Mackay, senior director national logistics & industrial capital markets CBRE, said: “This property has excellent synergy with the F&C UK Property Funds’ investment criteria. It is within a very established distribution location, has excellent fundamentals to capture the growth that the sector is currently experiencing, and has a very strong tenant in situ. This is a core, reversionary distribution asset that should perform well for the fund.”
Strutt & Parker advised Commercial Management; BMO Real Estate was represented by CBRE.
• To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette
