Rosemound and British Land are on the verge of selling more than £80m of warehousing at Daventry International Rail Freight Terminal, Northamptonshire, to pension funds.
The 750,000sq ft let to Tesco last month is under offer to Canada Life for £58m, representing a yield of 5.8%.
There has been an intense bidding war for the unit, with one agent describing Tesco which has a 15-year lease on the unit at £4.70 per sq ft as “the best covenant in the country, almost better than the government”.
Meanwhile, contracts have been exchanged on the nearby 300,000 sq ft unit at Site 4 East, which was let to Exel late last year for around £5.20 per sq ft.
AXA has agreed to pay £23.5m for the shed, which is used for a Mothercare contract. This represents a yield of 6.65%.
M3 acted for the vendors in both deals, but declined to comment. AXA was represented by Strutt & Parker; Knight Frank acted for Canada Life.
The Rosemound/BL joint venture purchased the 74-acre site from Severn Trent Property in May last year for £25m, and has planning consent for up to 1.3m sq ft of warehousing.
It is believed to be planning a second phase at the site.
HBOS-backed Rosemound was founded only in April 2002, but it says it will develop 3m sq ft of space this year and turn over around £200m.
References: EGi News 18/04/05
