Tritax BigBox has bought the Junction 6 Industrial Park in Birmingham from M&G Investments for £58.5m.
The urban logistics hub, less than three miles from the centre of Birmingham, has 12 units totalling 384,000 sq ft, ranging in size between 12,000 and 83,000 sq ft.
While it was bought at a 4.5% net initial yield, Tritax said the 2.5-year WAULT offered a good near-term opportunity to increase rents
The site is currently let at £7.30 per sq ft on average, versus the £10.90 per sq ft estimated rental value.
Tritax said the near-term income growth would lift the yield to 6.7%.
The REIT has also added £4.1m to its rent roll from new development in the first four months of the year.
As well as letting 500,000 sq ft of new space, the warehouse REIT completed a total of 1.4m sq ft of lettings over the period, adding £10.5m to passing rent.
In an update this morning, Tritax said it had been granted nearly 1m sq ft of planning consents since the beginning of the year, bringing its consented portfolio to 8.1m sq ft.
It added that it was progressing with a further £100m-£200m of disposals, having completed the sale of £150m of asset since January, in line with December valuations.
View availabilities and previous lettings at Junction 6 Industrial Park >>
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