Legal & General Property has bought an industrial site from Blackrock in Leamington Spa in Warwickshire for £8.6m, reflecting a net initial yield of 9%.
The purchase of units 1-8 Spa Park includes four high-quality modern warehouse units let to TJ Smith & Nephew, Woodhouse Group and plastics engineer PELS.
The scheme, which totals 152,238 sq ft, is situated opposite Wolseley’s UK headquarters and forms part of Blackrock’s wider Spa Park development.
Matt Jarvis, fund manager at Legal & General Property, said: “The price paid reflects a low capital value of £56.50 per sq ft, which compares well with other recent sales.
“In addition, we are confident of being able to work with the existing tenants moving forward to enhance the income profile of the asset.”
Knight Frank advised Legal & General; CB Richard Ellis acted for Blackrock.
Nick.whitten@estatesgazette.com
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