Investment firm Topland Group has bought a 190,000 sq ft distribution centre in Smethwick, Birmingham, for around £15m.
The property was previously owned by office product supplier Spicers, which fell into administration last year.
EY, the administrators of the office supplier, has sold the distribution centre at a net initial yield of 6.9% and a capital value of £78 per sq ft.
The property is let to OT Group until December this year, with mutual break options.
Sol Zakay, chairman of Topland, said: “This acquisition shows our ability to root out attractively priced assets in a competitive market where we can add value through our asset management skill. We are in exclusivity on another five deals, and are looking to further add to our portfolio.”
David Sanderson of Topland said: “This purchase demonstrates value for money in a highly sought-after sector. The short income profile will allow Topland to take advantage of significant occupational demand within the industrial sector and a notable undersupply of urban logistics warehousing within the West Midlands market.”
Savills advised Topland Vintage on the acquisition and has been instructed as letting agent alongside Bulleys. JLL acted for EY.
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