Franck-Steier Price has recently completed the acquisition of Network Rail’s national distribution centre at Prologis Park Ryton on behalf of West Midlands Pension Fund, managed by CBRE Global Investors.
The property is located on Prologis Park Ryton, Coventry, which is also home to JLR, LG, UK Mail and Freeman. The property comprises a 2013 built distribution unit of 302,038 sq.ft which was acquired by Network Rail for their occupation on completion.
The property was sold by sale and leaseback for a term of 15 years from September 2017. The lease is held on FRI terms with 5 yearly upward only rent reviews. The commencing rent is £1,887,737 per annum which reflects £6.25 per sq.ft. Network Rail has an option to break the lease on expiry of the 5th anniversary of the lease subject to 12 months prior written notice.
The purchase price of £35,800,000 reflects a net initial yield of 4.90%. JLL represented the Network Rail.
Ben Blackwall, Director at FSP comments on the transaction ‘West Midlands Pension Fund has acquired one of the region’s best distribution warehouses fulfilling their requirement for prime investment assets. The property is a key site for Network Rail and the initial rent set offers excellent prospects for future rental growth.’