A limited partnership set up by London-based Tritax Assets has paid Stoford Developments over £18m for the first phase of Swallowfield business park in Oldbury, West Midlands.
The price reflects a net initial yield of around 7.7%.
The first phase at the park comprises a 110,000 sq ft (10,219 sq m) office building named Swallowfield One.
The limited partnership, Birchley Fund, will forward fund the development of the building located on a greenfield site at Birchley Island, on Wolverhampton Rd, close to junction 2 of the M5.
The building has been fully prelet to GB Gas Holdings (Centrica) on a 15-year lease, at an initial rent of £1.485m pa (£13.50 per sq ft).
Contracts for the letting were exchanged in May.
Stoford plans to develop the next phases – Swallowfield Two and Swallowfield Three – to provide buildings ranging from 10,000-72,000 sq ft (929-6,689 sq m) in three-storey, self-contained buildings.
The business park will total 180,000 sq ft (16,722 sq m).
Tritax was jointly advised by Atis Real Weatheralls and Smith Gore Commercial. Stoford Developments was represented by GVA Grimley.
EGi News 14/08/02
