ING Real Estate Investment Management has on behalf of the Skandia Property Fund acquired a retail warehouse at Mucklow Hill, Halesowen, West Midlands, for £21.7m, reflecting a net initial yield of 6.8%.
The 90,000 sq ft retail warehouse is let to B&Q, with 15 years remaining on the lease term.
It is a modern, purpose-built retail unit, constructed in 1999, and is principally arranged on a single level, together with an external garden centre and builder’s yard at either end.
Nigel Pickup, fund manager for Skandia, said: “This acquisition continues our investment programme at an attractive time following the falls in commercial property prices in 2007-08 and marks the third purchase so far this year totalling £42.75m of new assets acquired for the fund.
“We have seen a marked change in investor sentiment, resulting in net inflows of cash into the fund, and therefore we are able to take advantage of the opportunities in the market and purchase prime assets at prices offering an attractive income return and where we are confident of achieving capital growth.”
The Skandia fund acquired
DTZ acted for ING REIM.
NB Real Estate represented the vendor.
