F&C invests in retail warehousing
Published: 08 November, 2010
F&C REIT has bought three retail warehouses units in Birmingham and Burton upon Trent for £13.63m
A unit in Aldridge Road, Perry Barr, Birmingham, was purchased from Axa Sun Life for £10.7m and represents an initial yield of 6.48 per cent. The standalone bulky goods retail warehouse totals 53,000 sq ft on ground and part mezzanine floors and is let to Wickes at £733,292 pa.
The other two units at Middleway retail and leisure park, Burton upon Trent, were purchased from the Prudential Property Pension Fund for £2.93m and represent an initial yield of 7.15 per cent. These units are located in close proximity to the town centre, forming part of the established Middleway Park. Unit 1 totals 10,025 sq ft on the ground floor, with a tenant’s mezzanine and is let to Dreams at £181,025 pa. Unit 2 totals 2,081 sq ft and is let to Carphone Warehouse at £40,000 pa.
Ian McBryde, director of property funds at F&C REIT, said: “The deals show that in this market good quality stock with long-term prospects can be bought at a competitive price. These purchases represent solid investments at competitive yields, occupied by successful brands.”
B C Commercial acted for the purchaser and Morgan Williams for the vendor of Perry Barr, Birmingham, with King Sturge acting for the purchaser and Cushman & Wakefield for the vendor of Burton upon Trent.
