M&G Real Estate has struck a deal to fund the construction of a 480,000 sq ft shed at Markham Vale in Chesterfield, Derbyshire, for £36m – a net initial yield of 6%.
The site was acquired from Henry Boot Developments, which will be retained as development manager.
The 27.5-acre site on the M1 is prelet to third-party logistics provider Great Bear Distribution.
On practical completion of the development Great Bear Distribution will take a 15-year lease at an annual rent of £2.77m pa with five-yearly open-market rent reviews.
M&G industrial associate director Andrew Windle said: “There is very strong investor demand for new, prime distribution assets in the Midlands due to the very tight supply and continued demand for new space. This will be a prime development in a core and very prominent location off the M1.”
Henry Boot Developments regional manager Ben Ward said: “We look forward to welcoming Great Bear Distribution Ltd to Markham Vale. This is one of several major deals at the site over recent months and represents significant investment into the area.
“We have worked closely with M&G Real Estate to secure this deal and we are sure further interest will continue to follow as a result of this latest investment.”
Gerald Eve and Aspect Property Consultants acted for M&G Real Estate; JLL, Burbage Realty and Legat Owen acted for Henry Boot Developments.
