Frontier Estates has sold three industrial and warehouse schemes to New Star Asset Management for £25m, a net initial yield of around 6.75%.
The properties include the 41,000 sq ft (3,800m2) Connect 33 development in Reading, which is let to KeeKlamp and the Berkshire NHS Ambulance Trust on 20-year leases at around £10 per sq ft.
It was held by the Frontier Key fund, a joint venture with Chubb Insurance managed by Palmer Capital Partners, which owns a third of Frontier.
The deal also includes the 60,000 sq ft (5,600m2) Wycombe Sands development on Land End Road, High Wycombe.
The first two phases are let to United Biscuits and Kelerbay respectively, and a third phase is being speculatively constructed.
The third asset is a 55,000 sq ft (5,100m2) building in Milton Keynes let to Hitachi Power Tools UK at a rent of £345,000 pa.
The five acre plot has space for further development. The High Wycombe and Milton Keynes buildings were held in a joint venture between Royal Bank of Scotland and Palmer Capital Partners.
Adam Eldred, joint managing director of Frontier, said: “We wanted to take advantage of the strong investment market to sell three good schemes.”
References: EGi News 24/01/05
